MARCH 14, 2012 5:55PM

Who Is Pumping You Up? Big Oil, That's Who.

Rate: 2 Flag

Everyone keeps yelling about the rising cost of everything.  Food is more expensive because transportation is more expensive.  Transportation is more expensive because fuel is more expensive.  And fuel is more expensive because…because…well, we’ve NEVER really gotten a good reason why it’s more expensive.  But here’s a hint: it doesn’t have a damn thing to do with who sits in the Oval Office and here’s why it doesn’t.

 

The oil industry (heretofore referred to as “those thieving bastards”) tells us in winter that gas prices will rise because they have to switch the refineries over to home heating fuel.  So why does that cause the price of home heating oil to rise?  Well, technically it doesn’t.  Home heating oil is high because the speculators are nervous about the situation in the Middle East.

 

Now, two things ring falsely in that whole bullshit story. 

 

Number one, there has not been a new large refinery built ANYWHERE in this country in decades.  Longer than twenty years, way longer.  Why not?  Simple.  More refineries means more opportunity to refine, which means bigger supplies which means reduced prices as supply suddenly will outstrip demand.

 

Number two, people were nervous about “the situation in the Middle East” since before I was born, and in the last sixty years guess what?  The Middle East is:

A)    still there

B)     still producing oil

C)   still fighting amongst themselves

D)    not looking like it’s going to stop A, B or C any time soon

 

Now, to be fair if we had a better public transportation infrastructure in our country, things might be a tad different.  There are huge areas of the U.S. where it is impossible to get “there” from “here” unless you drive.  Funny how shoring up that sagging public transportation infrastructure would create JOBS, but no one seems interested in promoting that (the P.T. part, not the jobs part). 

But still, the automotive industry in the U.S. has a very tight, symbiotic relationship with those thieving bastards – which is why you won’t see cars in this country that are affordable, environmentally friendly, and fuel efficient.  Those thieving bastards will do everything in their power to make sure anything that will affect their bottom line is something THEY can control (those thieving bastards continue to post huge profits – not JUST profits but HUGE PROFITS) .

The ONLY thing the President can do to lower gas prices is to release oil from the "strategic reserve".  I don't see that happening any time soon, because they're hanging on to that oil in case we have to invade... I'm sorry, "liberate" ... some other country.

So, if anyone wants to know who to blame for those high prices that keep going higher, look no farther.  For the most part, it’s those thieving bastards that are pumping you up.

 

This has been a PSA – a “pretty simple analysis”.  Of course, your mileage may vary.

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Yep. And ThoseThievingBastards do a lot more than rip us off at the gas pump; they degrade our environment and our health and and our economic well-being and drag us into disastrous foreign wars that benefit no one but the petrochemical-military-security/industrial complex. Our government operates mainly for the benefit of a handful of megacorporations, and the electorate, the citizenry, the collective "We The People" seem OK with that.
personally, i dont really wanna go anywhere.
i want HERE to be everywhere. that is what computers are for.
gas? fossil fuels? oh, they are gonna run out soon.
then there will be a genius who will find some kinda fuel
somewhere. he will be socially inept. he will go to Big Industry.
The sun may be taxed, once they get that
weather control thing going,
also rain.

it is predictable.

megacorporations are run by sexually inadequate old men
who may need viagra. i say, tax sex. tax everything.
who cares anymore?

well, i do.
Nana, it's all about the bottom line, and the bottom line don't give a flying fuck about the environment. It's pretty much the scorched earth policy for those thieving bastards, or better yet the pirate code: Take what you want, give nothing back.

James, if taxes were the answer I'm sure they'd tax everything. But let's not forget this country got its rebellious start thanks to an absurd tax. Me personally, I like to get outside and get away from all the technology. Technology makes me fat, and I don't need to be fat. I just wish someone would finally figure out a way to power a vehicle on something we could actually re-use, like maybe water (which means getting away from the internal combustion engine, so it won't happen in our lifetime). If they could figure out how to separate the H2 and the O atoms and use the hydrogen to power the vehicle, then you could just exhaust the oxygen. Wouldn't that be just ducky? Solves 2 problems at once, puts more oxygen into the air so it would be environmentally friendly and it would be a low-cost energy solution.
Now new refineries but existing refineries have enlarged their capacity. Supply and demand have nothing to do with the price of oil and should not be any part of the conversation any more than it should have been when the Hunt brothers tried to corner the silver market driving prices sky high.

What stopped the Hunt brothers was the exchange putting its foot down and altering the requirements for buying silver contracts to where speculation was made unprofitable. Same thing could be done here. Any talking head - Obama included - rambling on about "market conditions" is like the magician who distracts with his right hand so he can trick you with his left.

Obama carried the folly so far as to tap into the SPR already. The real issue is the billions being booked by the speculators for the large investment banks and hedge funds. That is who is being protected at the expense of everyone else, taking dollars out of the poor and working poor's pocket. It's a scandal of the highest proportions.
Harry, I agree re: the whole supply/demand argument. But it seems like every time the prices go up, that's the first thing I hear (the problem with switching the refineries over from one fuel type to another). It's bullshit, it was always bullshit, but the gas-guzzling American public swallows it every time.

It has been, will always be, about maximum sustainable profits at all costs. Why speculators are even allowed to affect pricing is beyond me, because it's all smoke and mirrors. But I guess we've been heading down that road since Eisenhower left office.
Watch "Enron, Smartest Guys In The Room". That explains it all. They were supposed to be an example of what not do, but instead Enron provided a road map to market manipulation. Former Enron traders are now oil traders.

One rationale I heard was it's because the big institutions are making so much money off this it cannot be touched because they need to reconstitute themselves after the housing bubble. Try finding one person in office who won't put the banks above all believing they are the most necessary part to our survival.

Huffpo has an article on this too today. Most of the reactions are political, intending to protect Obama - which plays right into the bankers' hands!