Ztrem Motorsports
Why Are Gas and Oil Prices Rising?
Here's what's going on -- and why Ztrem Automotive Group is working so diligently to help you get control of your gas expenses and earn an income in the process.
First, gas comes from oil, and oil is a non-renewable resource. It takes EONS to make a barrel of oil and we're using about 20 million barrels EVERY SINGLE DAY in the U.S. alone -- 5% of the world's population using 25% of the world's gasoline!
Next is "demand." That's what's driving prices. You see, demand is higher, thanks to a larger U.S. population, larger and more gas-guzzling cars, and an Internet economy that has a growing number of us using more (and more powerful) computers. Add to that larger average U.S. homes (that require energy to heat and cool), a transportation industry that's growing beyond expectation, and a consumer who's willing to pay just about any price for a "Ford full of Fuel." Given all that, it's easy to see why we could be paying $3.00 for a gallon of gas by the year 2020. But even that is still far less than our friends overseas. So by comparison, as far as oil producers are concerned, there's room in the budget to raise prices even further! A note here, consumption in the U.S. is about three gallons per person per day. That's about 15 times the consumption of developing countries and the Third World.
Finally, let's not forget that demand for oil is growing around the world, too. We'll be competing for gasoline with China, the former Soviet Union, developing countries in the Third World and the Pacific Rim...even the Middle East. By 2020, world demand will jump to at least 118,000,000 barrels a DAY, higher than the US Department of Energy predicted just last year!
The Other End Of The See-Saw
Then there's the "supply" side of the equation. And that's where the rubber really meets the road. Keep in mind that oil inventories and reserves are already below average. Demand has grown -- and is still growing, while production, even enhanced by amazing new technologies, has difficulty keeping up. The result is that, according to some experts, there could be a peak in the world supply of oil somewhere between 2010 and 2015. It doesn't take a rocket scientist to know that ANY anticipated limit on the supply of oil will send gasoline prices skyward.
Then there's the controlled output of OPEC, the eleven oil-producing and exporting countries which generate about 40% of the world's oil and which control two-thirds of the world's oil reserves. It used to be that the OPEC oil ministers had a hard time agreeing on how much oil to produce. Usually one or more could be relied upon to violate their own agreements, increase production, and create a spike in the world supply. The greater the supply the lower the price, generally speaking.
But times have changed and so have the politics of oil production. These days, OPEC has tried harder to restrain its output. The result, especially since 1999, has been a tighter supply and higher prices. And with oil production in the U.S. down slightly, America has become increasingly dependent on OPEC's oil. At the moment, the U.S. depends on foreign oil for a little over half its total supply. By 2020, that number will rise to 64%. And you know what that means, right? Greater control of prices by market forces outside the U.S. And remember what I said a minute ago about U.S. oil consumption per capita being 15 times higher than the Third World? Translate all that into a thirsty U.S. being forced to pay a greedy supplier for two-thirds of its oil needs. You know where I'm headed with this, right?
The
American Way
The
Amsoil Way
Bottom line, we're a gas-guzzling society and we love our cars. The price of gasoline is DESTINED to stay where it is or HIGHER -- until some point in the distant future when we're no longer using fossil fuels. And right now, there are 216,000,000 registered vehicles in the U.S. (including buses and trucks), the overwhelming majority of them use gas or diesel. It will take a very long time to convert the marketplace to any other kind of fuel.
So that's the "backdrop" of the Ztrem Automotive Group opportunity. Our product is one that consumers use everyday and are GOING to use everyday for a long time to come. We have a lot of cars, a lot of drivers, and an insatiable appetite for gasoline and oil. What better product upon which to anchor our company? What better opportunity to share with your friends, neighbors, and colleagues?
Be excited. Be very excited! Ztrem Automotive Group is headed into the future with a revved-up business plan and a high-octane opportunity. Contact us or join today and learn everything you NEED to know to be successful as an Independent Amsoil Dealer.
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