Oil

Okay, I have become really sick and tired of hearing the news about the “Pain at the Pump”.  Yeah, gas prices are high, it sucks that you have to pay more to fill up your car, but if we can keep these prices high enough, long enough, we will see dramatic changes in our behavior, we might even see a reduction of our carbon emmission, it might just be the best thing that has ever happened to us (and our grandchildren). 

One thing that really pissed me off about the whole thing is that the oil companies and Republicans are saying that these prices are a result of supply and demand.  This is a big lie.  THIS IS A TOTAL LIE.  The gas prices we are seeing now have nothing to do with supply and demand and I am going to tell you why.  It seemed awfully suspicious to see the gas price increase 40% in 2 years just as a result supply and demand, that would mean we would have had a major decrease in supply or a major increase in demand.  The truth is, we haven’t seen either.  I researched the US Energy Information Administration to track gas prices for the last two years.  I also went to International Energy Agency to get data on the global supply and demand.  What I found was pretty contradictory to what our government is telling us, there is no major change in global supply or demand and our current global supply is basically the same as it was two years ago.  The only thing that has changed, is the price of gasoline.  Take a look at the charts I put together from the statistics I gathered. 
You can see supply and demand, staying even with each other, no real volatility, while you see the price going way up.  Supply in demand are being represented in millions of barrels per day.  These should be two separate charts, but overlaying them makes the point. 

A closer look at supply and demand

The biggest reason for a 40% increase in gas prices is the decrease in the value of the dollar.  The US dollar has lost 30% of its value against the Euro in the past two years (found this out from Historial Exchange Rates).  Oil is purchased with dollars, even if supply and demand stay the same, the cost goes up for us as the value of the dollar goes down.  

What Would Deem Do?  Well, I would drive less, get a more fuel efficient car, and hope the rest of the world does the same.  I would also hope for this war to end soon, the US military is the single biggest purchaser of fuel in the world.  They go through 1.7 million barrels of fuel every day (talk about a big carbon footprint!).  I also wouldn’t let our country’s current inflation lead us into drilling the Alaskan National Wildlife Refuge (ANWR – Bush always says, “ANWR” because he knows Wildlife Refuge and Oil Drilling will rub people the wrong way!).  The oil we extract from one of the last protected places will not help prices at all, but it will help Bush’s friends and family who have many ties to oil corporations increase profit margins.

God bless America people!  

The important thing is we all have our slice of heaven, do what you love, love what you do.     

2 thoughts on “Oil

  1. Don and I think they should stop Nascar racing – can you imagine how much gas they burn during a race? That’s probaby very unamerican though. Sigh…

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  2. A world without Nascar…you’re not going to win any Red States with that suggestion! I say we just shorten it to 1 lap, and put all kinds of obstacles in the way, like cows, an old woman using a walker, and maybe an oil slick around the last turn. I would watch that and it would be more evironmentally friendly. Good suggestion Krissy & Don!

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