Who is at Fault for high Oil Prices

Today while working I noted that Gas locally was up to $3.99 a gallon. Who is to blame for these high gas prices. It is easy to blame the Gas companies, or Big oil as the industries detractors are want to call them. But are they really to blame?

Let see, Oil companies make less than $.08 per gallon, while congress makes $.18 per gallon, this does not account for what state and local government also gets from a gallon of Gas. Of course governments says it is for road improvement. Yeah! tell that to the families who lost loved one in the Minnesota Bridge collapse last year.

Oil Companies take their portion of the profits and use it for further exploration (in the few areas they are still allowed to explore) and to pay it's stock holders (If you have a retirement plan this means you) Congress takes it's portion and uses it to buy votes. I wonder which is the more efficient use of gas profits?

The reason oil prices are as high as they are is due to the basic Laws of supply and demand. Oil extraction has not increased dramatically in recent years. In the U.S. Oil refineries have not been built in over thirty years, to the point that we are now importing refined gasoline. Therefore the supply has not increased much. On the demand side countries such as China and India have gown economically and are now using more petroleum products. So while the supply has not grown significantly the demand has. Low supply and high demand means high prices.

The obstacle to increasing supply lies with our own government and their Eco-Nazi allies that have prevented us from drilling for our own oil and from using technologies such as Atomic power to ease the demand of power plants for petroleum leaving that supply for the use of gasoline.

Maxine Water let the cat out of the bag, socialist are about taking over the means of production and having it run by the federal government.






Let's not kid ourselves government ownership of the big oil is the goal. Once that is done gas prices will not go down. I know I have been to Mexico where the oil company is state run. Gas prices are as high there as they are here and their oil production runs at a surplus to the point that they are a major supplier of petroleum to the U.S.

If we want to bring the price of Oil down lets try this.

While portions of this idea seems to buy into the Global warming hoax, at the very least is seeks to use market forces to bring oil prices down. the Geo engineering Idea will probably never work, simply because if it were to prove sensible the very people that are screaming global warming now will come up with a reason to oppose any Idea that would result in man made solution, that does not result in humanity moving back into caves and creating more green house gases at the family Hearth.


I refuse to believe that the country that put man on the Moon, split the atom and invented the Airplane cannot figure out how to allow market forces to bring oil prices down.

Remember the price of Gas is due in large part to the cost of oil Futures. Oil futures are based one speculation about future supply and demand. If congress allowed for oil drilling tomorrow oil futures will drop and gas prices will as well.