Oil Is Cheap - Its The Barrels That Are Priceless

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THE NUMBER ONE REASON why gasoline prices are high and expected to get higher is because RAISING THE PRICE IS THE ONLY WAY BIG OIL CAN DISCOURAGE DEMAND AND ARTIFICIALLY BOOST SUPPLY HIGH ENOUGH TO AVOID REAL TIME SHORTAGES AT THE PUMP ACROSS THE COUNTRY. Expect record profits. That this is happening without terror attacks, oil pipeline explosions and hurricanes only means that the profits posted this year will probably be a world record AGAIN.

Big Oil experts and economists have no scapegoats to blame it on this time. So for once we are at least hearing half the truth about the insufficient number of refineries which in effect keep production on a tightrope, as I have been saying for the past year. The price of gasoline is high, but not because BIG OIL has to pay more for distribution costs, raw product, infrastructure or manpower. But this time around, I don’t think prices will plummet in Rock County to $2.19 a gallon by Oct. 20th like it did last year because THIS YEAR IS NOT AN ELECTION YEAR.

Post Election Gasoline Prices:
VP Dick Cheney held secret meetings years ago with Big Oil in the White House and it can be safe to assume that Big Oil has been given free rein to do whatever it takes to ensure a steady supply of gasoline at the pump. If you have to raise prices to accomplish some level of control over consumption, then by all means, do it. The Bush Administration could care less about high prices, that's “free market” in their view, just don’t repeat the energy crisis the nation experienced in the 70’s with widespread shortages, long lines and rationing. It would doom his presidency. But we'll never know for sure because, the meetings were "secret."

INSTEAD OF platform drilling off the coasts or violating the sacred wilderness of Alaska, we should petition the U.S. Government to build at least four new refineries with taxpayer money to process the current glut of oil that privately held refineries can’t or won’t. Certainly the refining business is profitable as witnessed by Big Oil’s $10 billion quarterly profits and besides, if Big Oil can’t supply the country with enough gasoline, they leave no choice but to have the U.S. government intervene to guarantee a sufficient supply.

By the way, Congress will be allowing for more oil exploration in the Gulf of Mexico and Alaska, but will this bring the cost of gasoline down? Ahh – no. Will it at least help us to become more oil independent? Ahh - no. The bottom line on this resource give-away is profits – nothing else. Arabs have the cheapest oil in the world no matter what anyone says.

DUE TO logistics, good percentages of Alaskan oil are being sold for a higher premium to countries like Japan and China. The Alaskan oil is then indirectly replaced by purchasing cheaper Arab oil to be used in the states. The more Alaskan oil pumped, the more dependent we become on the Arab oil needed to replace it, while greedy oil companies pocket the difference. But the Bush administration will swear that we need to open protected wildlife areas to wean ourselves off of terror sponsored oil. They have even defended the sale of Alaska Oil as a way to decrease our trade deficit with Japan. Their excuses to exploit our resources for the sake of America in the name of profits never ends.

WATCH FOR Republicans/Conservatives to once again blame gasoline taxes for the high price and demand for the taxes to be rescinded. In reality, this slightly lower price would work temporarily against Big Oil's objective to dampen demand thus forcing Big Oil to boost the price to the taxed value, but instead of the state collecting much needed revenue, Oil profits grow even larger.