EDITOR'S NOTE
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Keith Reid
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Shane Sweet
George Lanthier
List Rentals
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Fuel Oil News
PO Box 2123, Skokie, IL 60076-7823
A
s 2015 comes to a close there are certainly reasons to be optimistic. Oil prices
have dropped and it looks like that is going to be more of a baseline than an
exception. The production of oil from shale through the fracking process
has become increasingly efficient. Further, the technology can be turned on
and off easier than more conventional oil production. If the prices get too low produc-
tion will be curtailed, but as soon as they start going up the needed production can be
brought back online stabilizing prices. And, the good work the industry did to combat
speculation in the oil markets similarly seems to be reaping some rewards, even though
it was watered down somewhat in the rulemaking process. I can't help but be somewhat
cautious however, because commodities can swing in strange and mysterious ways. Or
maybe it's just my conditioning as a Chicago sports fan.
There is already an indication that the lower oil prices have curtailed some of the
extraordinary pressures that were on the industry in the past few years relative to natural
gas conversions. In our Sourcebook Survey (pg. 22) natural gas was not seen as being quite
as pressing a concern as it has been in past years, according to the respondents. The same
forces that have made the United States a petro superpower where oil is concerned have,
of course, done the same thing (and for longer) with natural gas. However, the differential
has narrowed enough that unless a utility has sold (would "bought" perhaps be the better
word?) legislators and regulators on the idea of subsidizing conversions in one form or
another, it's going to be a much tougher sell. That also is borne out in the consumer survey
conducted by Warm Thoughts Communications for NORA (pg. 28).
Still, there is no call for complacency. Just because a threat is reduced does not mean
that threat has been eliminated, and that holds true equally for our readers that distribute
propane. The natural gas industry is a fierce competitor, and while it certainly enjoyed the
luxury of a significantly favorable price differential the closing of that gap simply means
that new vulnerabilities will be identified and attacked. Therefore, as I do every year about
this time (and more often than that), I implore any reader that is not a member of the
appropriate trade groups to join up. Beyond that become active in the organizations, and
particularly in the legislative affairs process. These organizations need your help. While the
dues check is certainly a part of that, your expertise, dedication and personal involvement
in these activities take your support to an entirely different level. Shane Sweet talks about
this in his column (pg. 20), as well.
Look at it this way. With the holidays here this can be a special holiday present to your-
self, the family you support, your employees and the business that you worked so hard
to build and maintain. Without your support it's far too easy for the Scrooge in the state-
house to take your livelihood away.
On behalf of the staff here at Fuel Oil News, happy holidays and happy New Year.
l F O N
Keith Reid
8 DECEMBER 2015 | FUEL OIL NEWS | www.fueloilnews.com
Happier Holiday