Global
petroleum prices dipped below $50 a barrel at the start of 2007, but by
October 2007 they careened past $90 a barrel on their way to possibly
hitting an unprecedented $100 a barrel, nearly doubling in cost in less
than a year! On Nov. 7, crude oil prices touched a record $98.62 a
barrel after it was reported that crude oil inventories had declined
for a third straight week.
The U.S. Energy Information
Administration (EIA) re ported U.S. crude oil inventories were down by
800,000 barrels after they had dropped 3.9 million and 5.3 million
barrels the previous two weeks. On Oct. 31, unexpected drops in those
inventories to a two-year low caused oil futures to rocket to a record
$96 a barrel, equaling the inflation-adjusted highs hit in 1980 at the
time of the Iranian Revolution!
On that date, crude oil for
December delivery gained as much as $1.68 or 1.8 percent to hit $96.21
a barrel in trading on the New York Mercantile Exchange, the highest
since trading began in 1983, the Associated Press reported, noting
crude prices had risen 39 percent from August to October. On the
previous day, the contract surged $4.15 or 4.6 percent to settle at
$94.53 barrel, the biggest jump since Sept. 19,2005, when Hurricane
Rita threatened Gulf of Mexico petroleum production. Oil prices are up
63 percent from a year ago, the AP reported. They have more than
quadrupled since 2002.
"It's not a question of when we'll hit $100,
but how quickly," Nauman Barakat, senior vice president of global
energy futures at Macquarie Futures USA Inc. in New York, told the
Bloomberg news service. "The door is open to $100," said Kevin Norrish,
an energy analyst at Barclays Capital Inc. in London.
The
spiraling, record-breaking oil prices have been a crude awakening for
many motorists accustomed to inexpensive fuel for many years. Those
days are now well behind us in the rearview mirror as we cruise toward
a bruising at gasoline pumps. The full impact of the oil price spike
has yet to be felt by consumers and the general economy.
Average
prices for regular grade gasoline returned to more than $3 a gallon on
Nov. 5, up nearly 25 cents in three weeks, according to the Lundberg
survey of about 7,000 U.S. gasoline stations. "I could see easily
another 15 cents of upward pressure at the pump hitting very soon if
crude remains at approximately current levels," Trilby Lundberg said in
a Reuters interview.
Meanwhile, heating oil costs are expected
to leap more than 20 percent this winter. On Nov. 7, the U.S.
residential heating oil price soared nearly 16 cents a gallon over the
previous week to $3.11 although the coldest part of winter was yet to
come, Reuters reported. The EIA said it was the first time ever the
average price of heating oil, gas and diesel simults neously topped $3
a gallon. Diesel hit a record $3.30 a gallon. Heating oil was up 73
cents a galloi from the previous year while inventories were down 15.3
million barrels from a year ago.
The Organization of Petroleum
Exporting Countries (OPEC), supplier of more than 40 percent of the
world's oil, and the International Energy Agency hav warned that demand
for oil will increase during the fourth quarter of 2007, intensifying
upward pressure on energy costs. The Reuters news service reported that
drivers will face more acute pain if the cost of crude remains high
into the spring of 2008.
"Analysts
expect gasoline prices could rise to a never-before-seen $3.50 or $4 a
gallon if oil prices hold near current levels into next spring when
drivers hit the roads in greater numbers. That could further strain
consumers already facing a housing slowdown," Robert Campbell, a
Reuters analyst, wrote in mid-October, noting that U.S. government data
show that U.S. gasoline stocks are more than 22 million barrels or
about 10 percent lower than they were at the same time in 2006.
Fears of a major disruption in the flow of oil from the Middle East are weighing heavily on the minds of traders.
On
Oct. 26, crude oil prices surged as much as $1.76 a barrel or 2 percent
to $92 a barrel on the Nymex after the United States slapped sanctions
on Iran, the world's fourth largest oil exporter, and Turkey rattled
its sharp sabers by threatening to invade the oil-rich region of
northern Iraq and crush Kurdish rebels.
On Oct. 25, contracts vaulted $3.36 a barrel or 3.9 percent - the largest one-day gain since April 23.
"When
you're talking Iran and Iraq, two of the biggest holders of oil
reserves, no wonder markets are nervous," Gavin Wendt, senior resources
analyst in Sydney, Australia, told the Bloomberg news service.
Kevin
Norrish stated in a report cited by the AP: "On the back of mounting
evidence that the oil balances are tight, and tightening, markets are
becoming increasingly uneasy over the prospects of entering the winter
high-demand season with inventories at too-low levels."
Unexpected Shortfalls
Oil
futures spiked nearly $7 a barrel, or 8 percent, in only a few days
after the U.S. government on Oct. 24 reported surprisingly sharp
drawdowns in crude and gasoline inventories in the United States,
showing that oil supplies were falling when they should have been
rising to meet expected strong fourth quarter demand. The government
said U.S. oil inventories are about 5 percent lower than a year ago.
The U.S. has enough oil stored to meet demand for only 21 days.
"Distillates
and gasoline supplies compared to last year are down significantly,"
Antoine Halff, head of energy research at Fimat in New York, told
CNN-Money.com. Commercial crude stocks fell to then-lowest level since
March 2005 with imports dropping to a 3 3-week low. Gasoline imports
fell to a 31-week low, while distillate output slid sharply, dropping
inventories 6.6 percent lower on the year.
Much of the decline
in crude supplies was due to a sharp drop in imports, which fell by 1.3
million barrel! a day to an average of 9.1 million barrels a day.
Gasoline inventories dropped by two million barrels rather than
increase by 1.1 million barrels as expected. Gas imports fell by
255,000 barrels a day to an average of 838,000 barrels a
day. Meanwhile, demand for gasoline rose by 120,000 barrels.
OPEC
has said it will boost production by about 500,000 barrels a day,
starting Nov. 1, but it doesn't plan additional output increases, even
with record oil prices, a Venezuelan energy minister said in Caracas on
Oct. 25. Soaring world oil prices have prompted the U.S. and China, the
world's largest consumers of petroleum, to call on OPEC to raise output
even more, but OPEC has been reluctant to ramp up its oil production
because of a steep slide in the U.S. dollar, which reduces the value of
its petroleum sales.
A Dangerous Addiction
The
extreme rise in petroleum prices and increasing dependence on imported
oil is jeopardizing the general economy and national security of the
United States. Analysts worry that the sharp run-up in oil costs could
fuel inflation as it spreads throughout all economic sectors, adversely
affecting the price of virtually all products and services. They also
are concerned the U.S. is too beholden to hostile countries for its
vitally important oil imports.
The U.S. Strategic Petroleum
Reserve has nearly 700 million barrels or enough to cover about 68 days
of U.S. oil imports from all sources. As of July 2007, according to the
EIA, the United States was importing about 12.5 million barrels (525
million gallons) of net petroleum products per day or about 60 percent
of its daily oil consumption. About 5.6 million barrels of those
imports were from OPEC, whose members include such blatantly
belligerent U.S. adversaries as Iran and Venezuela.
Some
observers have expressed concerns the U.S. decision to impose economic
sanctions on Iran is a precursor to a military attack on Iran's nuclear
weapons installations. Iran exports 2.5 million barrels of the four
million barrels of oil it produces in a day, but none of it to the
United States.
The Washington Post reported on Oct. 26 that oil
industry experts say a U.S. military strike against Iran could cause
pandemonium in petroleum markets and oil prices could skyrocket. In
addition to having its oil production and deliveries disrupted, Iran
could retaliate by cutting off Iraq's roughly 1.7 million barrels of
daily oil production via allied Shiite forces in southern Iraq, further
driving up oil prices.
The United States is playing Russian
roulette by importing more than 50 percent of the massive volumes of
petroleum it needs from foreign sources. It's placing itself in a
perilous predicament that could bring its huge economy grinding to an
abrupt halt with dire repercussions for the rest of the world.
Olive Oil: An Illuminating Energy Source
How
did the United States get to the point of recklessly gambling its
economic future on the ability to replenish its petroleum supplies by
spending at least $920 million a day or about $33.5 billion annually on
foreign oil imports? In the Holy Bible, Proverbs 21:20 states, "There
is desirable treasure, and oil in the dwelling of the wise, but a
foolish man squanders it."
The United States has foolishly
squandered its birthright blessings, treasures and natural resources
over many decades to the point the U.S. has become the tail while other
countries are ascending as the predominant head internationally. Those
foreign oil imports have a ruinous impact on the nation's balance of
trade deficit (Deuteronomy 28:19, 44).
In the context of His
Second Coming and the end of the age, Jesus Christ gave an intriguing
parable in the context of His famous Olivet Prophecy that provides
important lessons for us at both the national and personal levels.
While
at the Mount of Olives prior to His crucifixion, Christ warned His
disciples of key signs that would precede His return to the earth as
the Messiah to establish the Kingdom of God on earth. In His parable of
the wise and foolish virgins, Christ said that Kingdom "shall be
likened to ten virgins who took their lamps and went out to meet the
bridegroom" (Matthew 25:1).
At that time, olive oil was used as
a source of light in lamps to illuminate dark evenings. It also was a
power source used to light God's temple. It's a tremendous energy
source symbolic of the power of God's Holy Spirit. An orchard of olive
trees blanketed the Mount of Olives and was not far from the temple,
making it easily accessible for the priests who needed oil to keep the
temple's interior bright. Exodus 25:6, Exodus 35:8 and Exodus 39:37 all
refer to "oil for the light."
Christ and His disciples were
accustomed to going to the Mount of Olives, which is a mile-long ridge
paralleling the eastern part of Jerusalem across the Kidron Valley. It
provided a serene, beautiful environment for them to relax, reflect
and
recharge. The Garden of Gethsemane was at its base, across the Brook of
Kidron. "Gethsemane" or "Gat Shemen" literally means "oil press" in
Hebrew, suggesting the garden was a secluded grove of olive trees where
an oil press was located. It was close to the temple or within a
"Sabbath day's journey" (Acts 1:12) of Jerusalem - so, if the temple
ran low on oil, it wouldn't be far to get it and replenish supplies.
The area is still covered with olive trees.
The olives had to be
pressed to squeeze out the oil needed to keep the lamps aflame and the
temple illuminated. On their rotating shifts, the priests of God were
to keep the lamps inside the temple burning continually, much like the
eternal flame at U.S. President John F. Kennedy's grave. "And you shall
command the children of Israel that they bring you pure oil of pressed
olives (or what we might call "cold-pressed oil") for the light, to
cause the lamp to burn continually. In the tabernacle of meeting,
outside the veil which is before the Testimony, Aaron and his sons
shall tend it from evening until morning (the dark hours) before the
LORD. It shall be a statute forever to their generations on behalf of
the children of Israel (Exodus 27:20-21, Leviticus 24:1-4)."
The Parable of the 'Fuelish' Virgins
Remember.
As Proverbs 21:20 strongly implies, the wise store up their oil while
fools stupidly squander theirs. The United States for years has
foolishly pursued an idiotic energy policy of squandering its petroleum
reserves while importing at least 50 percent of the precious oil needed
to lubricate its economic engine. Notice again Christ's parable of the
wise and foolish virgins. There's a 50 percent split between the two.
"Now five of them were wise, and five were foolish. Those who were
foolish took their lamps and took no oil with them, but the wise took
oil in their vessels with their lamps" (Matthew 25:2-4).
Here we
see 50 percent maintaining their reserves and 50 percent needing to
import theirs from an outside source. The wise took extra oil with
them. The foolish depleted what they had. The oil here is an obvious
reference to God's Holy Spirit that gives energy, warmth and light.
Some have called this the parable of the "fu-elish virgins." In recent
years, the entire Church of God was nearly blacked out by apostasy,
suffering a major energy crisis, and many members were caught off guard
by it. They were asleep at the switch.
"But while the bridegroom
was delayed, they all slumbered and slept (V. 5)." Many are still
asleep just like the disciples fell asleep in the Garden of Gethsemane
before Christ was crucified. Hopefully, we're heeding the wakeup call
and stirring ourselves to get ready for the return of Jesus Christ and
the Kingdom of God, which will come unexpectedly at an hour we do not
expect. We need to be vigilant and prepared.
"And
at midnight a cry was heard: 'Behold, the bridegroom is coming; go out
to meet him! 'Then all those virgins arose and trimmed their lamps
(cropping the charred part of a wick so it will burn better). And the
foolish said to the wise, 'Give us some of your oil, for our lamps are
going out'. (V. 6-8)"
The foolish want to get and let others
give. They quench or extinguish God's spirit, turn inward and have
little outgoing concern for others. They let their lamps get
dangerously low of olive oil and are running on fumes, running on
empty, expecting others to bail them out. They let their batteries lose
their charge and need a jump start. They make last-minute preparations
after squandering their time and oil like fools, but are stunned to
learn it's too late.
"But the wise answered, saying, 'No, lest
there should not be enough for us and you; but go rather to those who
sell, and buy for yourselves.' And while they went to buy, the
bridegroom came, and those who were ready went in with him to the
wedding; and the door was shut. Afterward the other virgins came also,
saying, 'Lord, Lord, open to us!' But He answered and said, 'Assuredly,
I say to you, I do not know you.' Watch therefore, for you know neither
the day nor the hour in which the Son of Man is coming" (V. 9-13).
Christ
concluded the parable of the foolish virgins by urging his disciples to
watch like Christ later would tell His disciples in the Garden of
Gethsemane, where they would ignorantly fall asleep like the foolish
virgins (Matthew 26:36-41). In Luke 21, where we read of another
version of the Olivet prophecy, Christ warns us: "Watch therefore, and
pray always that you may be counted worthy to escape all these things
that will come to pass, and stand before the Son of Man" (Luke 21:36).
We
cannot enter God's Kingdom on someone else's reserves. The foolish
ended up having to pay any price after midnight if they could even find
any oil at that dark hour. The parable does not say the foolish were
able to find any oil to purchase. They were left out in the cold and
had the door slammed in their faces as they scrambled at the last
minute to replenish their oil reserves.
Yes, national trends
often mirror conditions within God's Church. The physical often
parallels the spiritual. Ignoring their national fuel gauge, which has
dipped into the red danger zone, Americans seem to have the attitude,
"We're speeding at 85 miles per hour. We can't possibly be running on
empty."
Meanwhile, many members of God's Church are oblivious to
the fact they also are confronting a crisis that portends disastrous
consequences. By neglecting God's Holy Spirit, their lamps also are
ready to black out as the United States plunges headlong into what will
be the darkest episode in its entire history. The cry has gone out. May
God help us to heed the warning! 
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