Imagine driving into your local gasoline station, filling up your car, and getting your bank statement telling you that you paid $84,522.54 for that tank of gasoline. It better be extra, super, powerful premium. That is what happened to Ray Crockett in Nashville, Tenn., in early July, according to a report by Nashville’s News Channel 5. And, you thought gasoline prices were bad in California. That works out to about $8,624 and change per gallon. Or, if he paid the posted price of $3.05, he would have filled up with 27,712 gallons of gasoline. That is enough to put anybody into sticker shock. And, Nikki Johnson got to join him. She was dunned about $8,400 per gallon or $58,278.35 at the same Mapco station. Crockett’s problems did not end with the overcharge. He found out about the bill when he tried to buy lunch with the debit card and was told he didn’t have any money in his account. When he checked with Citibank, of course, it claimed they made the full payment to the service station, and their hands were tied, so to speak. The service station said it never received any Citibank funds. Crockett had no funds since his weekly paycheck is a direct deposit, and it was applied to pay off his charge. Mapco, on the other hand, was very sympathetic to his plight. The station gave Crockett a $100 gift card so he would have some money to get through the dilemma. After News Channel 5 investigated, Citibank finally unlocked the man’s account and admitted the charge was an error. Perhaps Crockett should deliver a little of that $8,000 gasoline to the bank. In another oddity related to the oil and gas business, Nationwide Insurance put its public relations department to work to issue a statement saying the company would not provide coverage related to hydraulic fracturing. The company seems to want everyone to know that all of this negative publicity about fracing should be addressed. Even though, as the company said in its statement, “Nationwide has not changed our policies or guidelines, nor are we cancelling policies. Fracing-related losses have never been a covered loss under personal or commercial lines policies.” As Shakespeare might have noted, this is “much ado about nothing.” But, that didn’t stop the company from making its firm statement about fracing. “From an underwriting standpoint, we do not have a comfort level with the unique risks associated with the fracing process to provide coverage at a reasonable price,” the statement read. Of course, the company is not going to provide coverage at an unreasonable price either. Nationwide issued the statement to make sure that you knew that it never did cover the oil and gas business. “Risks like natural gas and oil drilling are not part of our contracts, and this is common across the industry. Our longstanding underwriting guideline is that we do not insure the oil and gas business,” the company said. And, in case you missed the point, the company continued, “Nationwide’s personal and commercial lines insurance policies were not designed to provide coverage for any fracing-related risks.” I guess you’ll have to find your insurance somewhere else. This might just have something to do with where Nationwide is located. Its corporate headquarters are in Columbus, Ohio. The company is a major insurer in Pennsylvania also. Maybe the company is just trying to head off any demand from its customers in those states for – of all things – insurance. If the end really is near, I reckon it is good to know who you can count on for insurance – and who you cannot count on. Contact the author, Scott Weeden, at email@example.com.
2023-12-11 - Here’s a roundup of the latest E&P headlines, including a court ruling in favor of Welltec and new contract awards.
2023-12-20 - As 2024 approaches, how E&Ps are planning out operations depends largely on the size of the company, an economist said.
2024-02-16 - Baker Hughes said U.S. oil rigs fell two to 497 this week, while gas rigs were unchanged at 121.
2024-01-25 - CNOOC Ltd. plans on $17.5B capex in 2024, with 63% of that dedicated to project development.
2024-02-13 - Woodside’s Sangomar Field on track to start production in mid-2024.