Companies like Triple Diamond Energy Corp. understand more than anyone the costs involved with producing a barrel of oil. The high cost of finding and extracting the oil can place a serious burden on our economy. For this reason and to reduce our dependence on foreign oil, Triple Diamond Energy Corp. are proponents of finding new sources of domestic oils for use in consumer products.

Each winter, especially in the cold Northeastern United States, homeowners brace themselves for extremely low temperatures. The inhabitants of the Northeastern region of the United States consume nearly 80% of the world’s heating oil.  The consumption of the inhabitants in this region often set the standard for the oil prices across the world.  Why do the people living in this part of the United States matter so much?  Those who live in the North East of the United States will use more oil to keep their homes heated.  A record low in the temperatures can often lead to record high oil prices.

The Law of Supply and Demand

The law of supply and demand is one of the first things all economic students learn.  The larger the demand, the greater control the suppliers have over the prices.  Each year during the holiday season the news reports record numbers of consumers fighting for the privilege of paying a ridiculously high price for the most popular toy of the season.  These news reports are entertaining when they are about consumers paying high prices for a limited supply of toys and not so entertaining when consumers are paying for a limited supply of oil.

Heat Is a Need in the Northeast, Not a Luxury

The people living in the North East of the United States often find themselves scraping together their pennies not for a new item for their family, but to pay their monthly gas bills.  Heating oil distributors know that consumers have only two options, pay the bill or get their heat shut off.  Homeowners are completely at the mercy of the distributors and are forced to pay in order to keep their family secure and healthy during the long cold season.

The Government Intervenes

Knowing that record cold temperatures can lead to financial hardship and possible health hazards in the North East, many presidents have directly petitioned the oil producers in the Middle East for lower oil prices.  Threatened by the possibility of a recession, President Bush recently visited Saudi Arabia to discuss current oil prices with the Saudi Arabian oil barons.  The President argued that the high prices were having an extremely negative effect on the largest part of their consumer base and that these effects would continue to escalate until the consumers could no longer afford to make future purchases. 

Hope for the Future

Consumers continue hope that this plea and reasoning will eventually lead to a reduction in oil prices.  It is hard and disheartening for any consumer to have to choose between heat and medicine or even food.  Certain domestic suppliers of oil like Triple Diamond Energy Corp. are doing all that they can to alleviate the financial burden high oil prices are causing the average consumer.  It is the hope of companies like Triple Diamond Energy Corp. that Americans will be able to remain warm and secure all year round for fair and reasonable prices.