I recently received the following message from a most Righteous Sister in Seattle:
"But Reverend, I just received my heating oil bill and it is over $1000! Geezus! That's an all time high. When I bought my house in 2003 the price was $1.68/gal, now it is $4.39/gal. Choke. I've insulated, I conserve. Feeling downpressed by oil and the need to stay warm."
The Reverend's heart goes out to this Sister, and to all of the Brethren who are suffering the squeeze of Big Oil's hold on our lives. We are, almost all of us, beholden to the fossil fuels in one way or another, and to the corporations and cartels that control the flow and pricing of oil. The energy business is a huge beast, with its tentacles extending into many facets of our lives.
I know the Sister who sent me this comment, and I know her to be an informed and Righteous Sister who is trying to live with as little impact as possible. But, like all of us, she needs to stay warm in the winter. The price of oil has spiked and declined over the last ten years, based in large part on speculation for profit by those who produce nothing. Regardless of the declines and rises of oil costs over the years that our Sister has owned her home, the mean price of oil has risen over 250%. How does a household plan a budget for these kinds of commodity price increases? Oil is not the only commodity that is squeezing my Brothers and Sisters. Grain prices have skyrocketed in recent years, in part based on flawed bio-fuel policies. Food costs have risen accordingly.
Here is a recent NPR story on heating oil costs and the damage that can result. It is interesting to note the added cost of diesel fuel for the delivery trucks and how that pushes oil delivery costs up. I will be discussing the role of the oil companies, and speculators, at the end of today's entry.
I wish I had a silver-bullet answer for the many working folks that are suffering from the effects of commodity price increases. Sadly, I do not. I have only more hard truths to offer. Yesterday I urged the Brethren to compile a household budget and to begin to track household expenses against the projected costs of the budget. Our Sister's huge heating oil bill is a brutal example of actual costs over-riding a projected budget amount. There is not much to be done for the Sister's oil bill but the struggle to pay it. Looking to the future, however, a large expense or seasonal item, such as heating costs, are something that can be worked into the household budget during the summer months when heating costs are low. It can be a difficult thing to set aside money in the summer for bills that will come due in the winter, but, with discipline, it can be done. Many utility companies and fuel suppliers have plans where consumers can pay more in the summer to hedge against costs in the winter. This method effectively averages out the cost of heating by allowing consumers to pay in increments each month. This method allows the cost of the seasonal commodity to be spread out over a full year to avoid shock billings that can sink a budget and cause a financial crisis in the household.
Here is an interesting link to a trade article on oil pricing and speculation, as well as consumer tips for dealing with rising oil prices. Remember, this is an industry journal.
http://www.heatingnews.org/docs/issues/eccpricesissuebrief_spring2011.pdf
The Reverend, once again, has to voice the hard truth. There is no easy path for the working consumer. Costs for basic commodities are rising, partially because of increased demand by countries like India and China, but more directly because of the impact of higher fuel costs and speculation in the energy markets. One of the only ways that our Brethren can prepare for, and deal with, these types of costs, is to formulate a household budget and then take that cold, hard look at where the money is going. If there is not enough money in the November budget for the heating oil bill, we can try to budget that cost over the other months to cushion the blow.
We are on our own my Sisters and Brothers! The Rev believes that we have to look to ourselves to find the pathway to greater financial freedom. The Down-Pressors do not want you to be free. The Corporate Demon does not want you to have the ability to move your money to responsible companies or community oriented banks or credit unions. Remember, even though the path is hard, and I am here to tell you that it is hard, we have the power to prevail. It will be a long struggle and a difficult struggle. Success will be measured in increments, not in sweeping change. The Demons and their Down-Pressors will always be there, waiting to hold us down. Fight Back!! There are those who would poison our Brethren with lies, who would tell our good Sisters and Brothers that greater financial freedom, the freedom from oppressive debt, is too difficult to achieve. This is not the truth. The truth, though a hard truth, is that we, each of us, have the power to begin to make changes in each of our lives. We, each of us, have the power to reach out and help our fellow human beings make positive changes in their lives. We have the power to model positive change for our children and our friends and neighbors.
I said I would discuss the oil companies and oil speculators. This topic is high on the Rev's agenda and will require entire blog entries to be devoted to it. I hope that the few comments I offer here will suffice for now.
Oil companies and oil speculators have been raking in record profits while, at the same time, working consumers are being crushed under the ever-rising costs of all things associated, directly or indirectly, with fuel prices. Whether paying more for gasoline to drive to work, or paying more for goods delivered in a truck, even heating oil, the consumer pays while the oil barons profit.
At the same time that oil companies are profiting from our Brethren's economic pain, they are spewing out advertising that touts the new "green" image of Big Oil. Know the charlatan when you see him, my Brothers and Sisters! Snake oil and lies, that is what Big Oil is selling you. Oil companies devastate communities and environments around the world as they extract crude with which to reap even more profit.
Fighting Big Oil, and the parasitic speculators that follow in their wake, will be a daunting task. The Rev is addressing it only in the context of the struggle for personal financial freedom.
Below are some interesting links with varying viewpoints on oil pricing and oil speculation. The Reverend thanks you, with all his heart, for reading this today. Remember, "If 20% Pay Down 20% We Strike a Blow!"
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