Colorado Springs News, Sports & Business

NOREEN: Gas prices rise, reflecting world market

BARRY NOREEN Updated: February 19, 2013 at 12:00 am

Since January gasoline prices have risen rapidly.

In the past gasoline demand usually has been lower in winter and prices are at their lowest. Not this year.

Reader Richard Schlapp wrote, “I am wondering why the price of gasoline in Colorado Springs is rising so rapidly? At our King Sooper gas station, the price has risen from Jan. 11 ($2.77) to $3.46 on February 15. That is an increase of 69 cents in 35 days.”

On Monday the Automobile Association of America (AAA) said the average cost of a gallon of gas in the U.S. is $3.73, an increase of 43 cents in the past month.

Why?

Well, AAA says this is the time of year some refineries switch from making a winter blend to a summertime blend, which costs more. Also, a New Jersey refinery that makes about 7.5 percent of the gasoline consumed in the Northeast is closing.

Another reason is that U.S. demand for gasoline no longer plays the only leading role in determining the cost.

According to a recent analysis by the U.S. Energy Information Administration, “U.S. demand for crude has remained relatively flat over the past 20 years, international demand is surging, and contributing to the increase in global oil prices. China is the world’s second largest oil consumer, using approximately 9.2 million barrels of oil a day.”

So the bottom line is that the developing world’s demand for gasoline is affecting the price and that is not going to change.

On another matter, reader Rich Reich knows of business partners who are parting ways, but had an agreement not to compete within 10 miles of one another. Who is it, Reich wanted to know, that legally settles the 10-mile boundary?

The answer is that surveyors can be hired to determine such things, but in the rare event that such a dispute makes it to court, a judge could ask the El Paso County surveyor to make the determination. Our surveyor is Lawrence Burnett.

Global positioning satellite technology has taken a lot of the guesswork out of such things and it might be a bit archaic that we still elect a county surveyor, which is not a full-time position.

But in the old days, when blood might be spilled over mining claims and fence lines, it was thought that electing a surveyor was important, so the position survives today.

Got a question? Contact Barry Noreen at 636-0363 or at barry.noreen@gazette.com. Follow him on Facebook and Twitter. Hear him on KRDO 105.5 FM and 
1240 AM at 6:35 a.m. Fridays.

 

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