Clarity in a world of chaos

So, whose fault is it?

 

I don’t know about you Dallas- but I for one, am tired of these $2.00, $3.00, and now near $4.00/gallon prices.  More than that- I am sick and tired of hearing everyone who may be at fault, lie to us by repeatedly saying, they’re not at fault. Well, if it’s not the trader’s on Wall Street’s fault, if it’s not Big Oil’s fault, if it’s not OPEC’s fault, and it’s not our government’s fault, then whose fault is it?

 

Moreover, please- don’t say it’s the consumer’s fault.  We all have to get from A to Z, be it in a Prius or F-450 dualie. Don’t say it’s due to increased demand from China. The VAST majority of Chinese people are still walking or bicycling where they want to go. Yes, they have a LOT of people, but America is still the number one consumer. Why aren’t we still getting our OPEC Protector employee discount?

 

There is some good news, it seems the House passed a bill to sue OPEC over their decision to restrict supply. But, guess what- the White House threatened to Veto that bill…  Anyone surprised?

 

Source: ( http://news.yahoo.com/s/nm/20080520/pl_nm/congress_opec
_dc )

 

While trucks and SUV’s are popular today, they've been popular since 1991. In April 1999,  I bought my first full size truck, and 87 octane was $0.79 - $0.89 a gallon. I could barely squeeze $22 into the tank. Today, $25 is less than a quarter tank in my truck. Shortly thereafter, an article ran in the news (Must’ve been on Fox 4, since that’s who I usually watch) where they said, “Gas hasn’t been this cheap since the 1970’s”.  It’s as if someone was listening, and fuel has been on the rise since that day.

 

When it reached $1.79 in 2000, I thought that was bad, but soon it dropped back into the $1.29 - $1.49 range for the next 2-3 years.  In Dallas, we neared $2.00/gallon in December 2003, while California was at $2.39 a gallon when we went out there for Christmas that year.

 

If memory serves, ExxonMobil denied any implication- all the way to the bank that year, raking in more dough than even Wal-Mart. However, it was no one’s fault they were doing so well. Surely, it’s not the fault of “Big Oil” for not building new and more efficient refineries to ensure adequate supply in the US. It's not their fault for creating our dependency on foreign oil by firing US employees, and importing the oil from overseas.  Oh no, as a multi-billion dollar corporation, they are just on for the ride.  There’s nothing they can do to help (or at least not hurt) average Americans.

It’s not the government’s fault for making it illegal for a precious commodity, such as oil & gas, be traded on the stock market. Why is that allowed? Why let people bid on, and invest in a product (any product) that is the life’s blood of this nation, and indeed- the world. If ever Government regulation was needed over in industry, the Petroleum industry is it.

 

Let it be known, I have no problem with companies making money, even if it’s insane and obnoxious amounts of money. As long as it’s done in a way that’s fair to the consumer- and that we as consumers are not manipulated through intentional gestures, such as reducing supply in the face of increasing demand.  Play supply & demand games with X-Box’s, and Playstations, even with cars- but not with gas. Rich or poor, we all rely on fuel to get us from A to Z, and much more.

 

August 2005, Hurricane Katrina showed “Big Oil” (Or the stock market, or OPEC, or someone) that they really had us (consumers) over a barrel (No pun intended). It showed them they could exploit us mercilessly, relentlessly, and publicly, with no retaliation- and all we could do is grit our teeth, open our wallets, and pay for them to do it to us.

 

We watched as gas prices soared from $1.89 to $3.05 in the DFW area and higher in other places, due to supply and/or demand fears.  After a month or so of public fleecing under the guise of damaged refineries, reduced supply, and heightened demands due to “fears”,  prices stabilized, and returned to normal (If you call $2.00 - $2.50/gallon normal). Little did we know- it was the beginning of a paradigm shift in the cost of fuel in the USA. Today, we would feel LUCKY, indeed blessed- if we could find gas for $3.00 a gallon.  Why? Why does gas have to be so expensive?

 

People like to say, “Well- a gallon of milk costs $4.00/gallon and no one’s complaining about that”.  Yeah, well- I don’t have to buy 10 - 30 gallons of milk every week.

 

Since August 2005, we have been flirting with $3.00 a gallon, in a reckless manner. Now, we’re looking at $4.00. If you drive something with a more fuel-efficient diesel engine, it’s as if, since you can go further on a gallon and wouldn’t normally have to buy as much, we’ll just have you pay more for each gallon. I saw diesel fuel recently as high as $4.75/gallon.  I know the GM and Dodge 2500, 3500, and Ford F-250 & 350 owners cringe every time they pull up to the pump. Not to mention the OTR big rig owner/operators- and their 200 ($800) – 300 ($1,200) gallon tanks (fill-ups).

 

So, who’s going to help us?  Don’t expect Wall Street too. They use every excuse to drive the prices.

• A “predicted” busy Hurricane season (Prices rise).
• Venezuela said they don’t like America (Prices rise).
• Middle East instability (Prices rise). When was the last time the Middle East was stable?
• Iran is out of control (Prices rise).
• Colder than normal winter may increase demand for heating oil (Prices rise). 
• M*A*S*H reruns are out of order (Prices rise).

   

Even though there have been no serious hurricanes, warmer than normal winters in most of the US since 2005, and no military concern at all from any threats from Venezuela. None of those fears, once they failed to materialize, resulted in lower prices.

 

At least when fuel costs began to soar- President Clinton opened the strategic reserve to bring prices down.  President Bush hasn’t even tried to help us out. I guess when you’re a multi-millionaire, or better yet- your gas is free, you forget or are out of touch with what it’s like when a necessary commodity (like fuel) have its price tripled and in some cases, quadrupled under your watch. Now we get a $300 - $1,300 stimulus bone thrown at us.  Thank you, but that's going to help no one for more than a week or two- maybe.  If you want to help, refund all the taxes (income and purchase) we paid for one year.  That's help.

 

Folks now say Clinton’s decision to open the reserves was detrimental, because the refineries intentionally scaled back production to keep costs stable.  If that is true, then explain to me again how Big Oil bears no fault for fuel prices being what they are.  If they were doing what they could to keep costs down, they’d INCREASE supply when the strategic reserve opened, not reduce it.  Intentionally reducing supply, in my opinion, makes them guilty of fleecing Americans.

 

OPEC, knowing we’re entering the travel season, was reported today (YaHoo! News) as saying they WILL NOT increase supply at least until their next meeting on Sept. 9, 2008. (Source: http://news.yahoo.com/s/ap/20080520/ap_on_bi_ge/oil_pri
ces  )

 

 Increased demand (some people will still travel), and reduced supply (because it’s not in Big Oil’s interest to stockpile fuel, or increase refined supplies) will only drive prices higher. Therefore, they’re guilty too. However, does anyone expect non-American’s consider American interests?  No- we have to look out for ourselves. We need to put American’s in Lubbock, Odessa, and other West Texas towns, as well as Louisiana, and California’s oil fields back to work, and wean ourselves from OPEC’s petroleum udders.

 

I don’t know about you, but if I have to pay $3.50 - $4.00/gallon (with some analysts saying it could be $10.00/gallon within 2 years), I’d feel better knowing it put thousands, if not hundreds of thousands of American’s back to work in our own oil fields, than for it to be the way it is now. I’d mush prefer that, than to have our money absorbed by OPEC, a few billionaire and millionaire investors, and their corporate and wall street minions, raking in record profits, record dividends, and all the while claiming no responsibility in why things are, they way they are.

 

Just last week I had to make a 1,000-mile trip on family business.  That trip cost me $200.00 in fuel, to drive my F-150 1,000 miles, all highway driving. That same trip in May of 1999 would have cost me $60.00.  For the first time in my adult life, flying is less expensive than driving. The only reason I didn’t fly, is because I’d still have to rent a car when I got there, and pay rental and fuel costs for it. Therefore, I spent 16 hours behind the wheel instead.

 

• Are you tired of $45 - $120 fill-ups every few days?
• Are you tired of excuses of why it’s no one’s fault?
• Are you tired of no one doing anything about it?

   

Well, say something then.  Maybe this will get the right person’s attention, and maybe someone, somewhere can get a grip on the reins, and stop this horse before it runs off the cliff, and takes us off with it.