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Reasons the cost of oil and gasoline are so high

Posted in Energy Solutions by Howard Deutsch on June 12, 2008

Reasons the cost of oil and gasoline are so high

There is a major debate going on in Washington, on Wall Street and on main street about why the cost of oil and refined oil products (gasoline, heating oil, jet fuel, diesel fuel, etc.) are so high. The fact is, there are several contributing reasons that have built up over many years. The price of oil has doubled in the past two years. It appears that the balance between worldwide oil supply and demand has reached a tipping point where oil demand is now greater than the supply. This has set the stage for speculators and investors to place their bets on continuously rising oil prices, helping to drive prices higher at a very fast pace. Some people believe that as much as 50% of the price of oil is due to speculation.

Following is a brief summary of the reasons oil prices are so high and may continue rising, unless leaders in Washington and in other countries take meaningful action now:


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One Response to 'Reasons the cost of oil and gasoline are so high'

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  1. jeff roensch said,

    The only energy or oil monopoly in this country is a governmental institutionalized monopoly on our country energy market. The legislative branch has been engaging in anti-competitive energy practices from drilling to building new refineries and much more. They are in clear violation of the

    “Sherman Antitrust Act
    This Act expresses our national commitment to a free market economy in which competition free from private and governmental restraints leads to the best results for consumers.”

    Clearly the governmental restraint are in violation of a free market economy and is criminal negligence on the part of the liberal politicians who are the real cartel that profit in taxes more then 3 to 1 to the oil companies that actually work for their money and then have to pay taxes on top of that. So when Oil profits go up the tax revenue increase is 3 times that of the oil companies. So who do you think is the real cartel???

    This criminal incompetence of the democrats and legislative politicians anti free market energy economy in allowing American companies to meet American Oil needs is in need of change and with bush opening up offshore drilling it is time that we conservatives take a page from the left wing play book and for us to us the judicial system in upholding our laws and open up drilling.

    Why dose the Senate call for investigations on big oil? Because they are trying to transfer the blame off of them by placing the blame on someone else. By placing the blame on the oil companies and keep people from seeing that government is the true problem they are able to offer false hope in an effort to gain more power and money from taxes while eliminating a free market economy in our country and forcing us to send our money to unfriendly Middle Eastern countries.

    Why should we drill?
    1) Create more high paying jobs for Americans
    2) Become energy independent and stop sending $700 billion to middle eastern countries that support terrorism
    3) Invest the $700 billion in America
    4) $700 billion is 6% of the yearly US economy, and investing this in America would do what to our economy? Lower inflation and strengthen the US dollar?
    5) Instantly drop the price of oil because oil Speculators like me would invest in commodity producers that provide the product like Exxon, Chevron, BP, Shell, because this is the smart investment. When Oil Speculators transfer investments the Oil price falls on the stock market.

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