April 28, 2006

High Oil prices --Tear out your hair in frustration

It is not often I find myself without a firm opinion on a given subject. The high gas prices leave me frustrated and angry. I do not believe for a moment we went to war with Iraq to steal that nation's oil reserves. Anyone who still buys that load of crap is an imbecile. I do believe that we have spent a significant amount of lives and treasure making that country free for Democracy of some form. It is not too much to ask in repayment a little cheap oil.

Here are some facts to consider when discussing the high price of gas:

1. The rest of the world pays much more for gas than we do in the USA
2. The oil companies have made record profits over the last three years of high pump prices
3. The Government has made more "profit" from taxes on gas than the oil companies
4. A large part of the high cost is environmental rules that keep us from domestic drilling, building new refineries and a common gasoline formula for the nation.

Let us now take these in order. I do not care what Germans or French or Japanese pay for gas. It has no relevance to the discussion since those nations impose heavy taxes on fuel to promote environmental conservation effort.

I am a believer in free enterprise and the capitalist system. Companies must make a profit. I do believe that record prices and record profits are not a coincendence. The big oil companies have merged back to the point we were a hundred years ago when the oil trusts were broken. It is easy to say go somewhere else, but how does one exercise the right to shop[ when gas is the same price at every station? If an oil company would be willing to take the lead, accept less profit (I did not say NO profit) he could make huge inroads to the competition. It is my feeling that most of us are not real brand loyal when it comes to gasoline (like most commodities)a leader in this proposed price war could break the trend and start building some brand loyalty - with some good marketing! In the end, public pressure will force the Government to intervene and that will not be good for the oil business, nor the consumer. It is in Big Oil's best interest to act before the government does.

The Government taxes are a considerable influence on pump price. Remember often taxes are a percentage of the price, so higher prices = more revenue for the local, state and federal governments who all tax your purchase of fuel. It was said two years ago the price of gas will hurt the Republican Party more than any policy decision. If gas does not drop before November, look for strong gains in the House and Senate by Democrats. You can count on gas prices dropping in August.

I have no faith our representatives in either party are concerned with fuel prices until I see domestic drilling increased. Until we see new refineries opened, there is no interest in solving this issue. Call your Senator, Email your Representative.

We have seen natural gas prices double and double again. Electricity has followed suit. Gasoline is up more than 30%. It is time to start putting pressure on Mexico -- if you want to keep us from sending back 12 million workers, and more importantly the wages they earn, you had better look at your oil output and the prices you charge us. We should put heavy taxes on goods produced in Mexico (NAFTA be damned) until we get some cooperation. I bet gas will drop about fifty cents a gallon in a few weeks. I think we should apply similar pressure to the other oil producing countries -- except Venezuela -- fuck them, Commie bastards.

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