Demand itself has been up measurably over this time last year, but is now falling back to the same level of demand. Whether this will continue, as the driving season comes upon us will be a function of gas prices and the general state of the economy – about which I am not going to comment, except to say that there is no talk around our office about any impact from the current rise in prices.

Domestic production of gasoline has been running significantly above last year, but is now returning to those levels

While imports have been well below last year, although climbing at the same rate as they did about this time last year.

As far as the refineries go, they are processing about the same amount of crude as they did this time last year

But while imports have been about the same as last year

The amount that comes from domestic production, while it has been stable for almost a year, is now starting to dip down again.

It is this downward dip in domestic production, when tied with the problems that Mexico (typical of other South American countries) is now seeing, and the other issues about production around the world, that suggest that this could end up being a little more volatile summer than some of the other commentators would have us believe.

I note, for example, that both Peter Jackson and Michael Lynch spoke at the Canadian Energy Research Institute Oil Conference last week in Calgary the natural gas one being in March. Not having taken the time to drop by I am not quite sure how rosy they painted the picture, but it will be interesting to see how far off their predictions are this time, and what excuses will and will not be made.