Don’t Start Doing The Fleet Fueling Two Step Just Yet
Wow! Don’t go thinking your diesel fuel prices are going down. Before you get excited that your fleet fueling costs could be going lower let me tell you who has more crude oil. Well their Presidents first name is the same as a hurricane that hit the U.S. in the past decades. If your guess for this new highly rich country for crude oil supply and potential to make a difference in diesel fuel prices was Venezuela, you would be right. Yes, that famous dictator President Hugo Chavez now has more oil reserve then Saudi Arabia.
I think I like the Saudis having more oil reserves, the problem that they have is they like to go along with OPEC. Well actually they lead OPEC because they do have the most oil. Let’s not forget that Venezuela is an OPEC country but with a dictator in charge who knows what will happen. They will become fuel companies friends or at least make pretend they are there friends like they have in the past. No fuel management of diesel fuel prices will not get easier with these guys having more oil reserves but it might not get more difficult either. More oil could drive down fleet fuel prices but not anytime soon.
Saudi Arabia oil is a better oil than Venezuela’s oil because its mostly light, conventional, easily-pumped crude, while the Orinoco deposits (Venezuela’s) are extra heavy tar-like sour crude that must be upgraded or mixed with a lighter grade to create an exportable blend. It causes an increase in cracking (breaking down oil) costs, which leads to higher diesel fuel prices. Some analysts point out that some OPEC members’ reserves figures have not changed in years, suggesting new discoveries had exactly matched output, while others say the lack of independent verification gave rise to doubts. There is no question its interesting times fueling production and fuel management solutions. A jubilant Chavez told parliament that Venezuela’s reserves now surpassed those of Saudi Arabia.
Hopefully, somewhere in the future one of these OPEC countries that we bail out like Kuwait or Iraq remembers that the United States is the good guys. We helped them and it costs our taxpayer a lot of money and lost lives. Maybe then, they can allow crude oil to be sold for a little lower fueling prices so it doesn’t break our countries back.