here is what I find the most ammusing and never seem to hear anyone (poloticians or oil co. ) address it. On 9. 10. 01 we had a surplus of oil barrels, and I was paying less than if not right at a $1 a gal for diesel then on 9. 12. 01 we had a shortage and it jumped $. 50 a gal. 7 years later it has jumped 400% and now I pay $4 a gal. Someone please explain to me how in two days we had shortage
The real answer is easy...
While a few volunteer defenders of the oil companies and speculators with agendas of their own, attempt to draw our attention from the REAL cause of price increases, and focus upon the "reasonableness" of the publicly displayed 10% profit they are making, attention is diverted AWAY from the FACT that USA fuel CONSUMPTION has stabilized, and in many areas DROPPED - yet they still cling to "supply and demand" as justification for consumer pricing and corporate profit.
"Demand" has NOT quadrupled in the last 5 years as prices have, there are still the SAME number of refineries producing fuel, in the same general volume as always - so WHERE is all that extra "supply" coming from?
Oil exploration and associated pumping and delivery of crude has not quadrupled, nor has refining expense.
Even if you add up ALL the associated oil exploration, delivery and refining cost, I challenge ANYONE to even come close to a 4-times increase in those - OR the "supply/demand" numbers as related to actual fuel consumption.
SO, what HAS changed?
S-P-E-C-U-L-A-T-O-R-S! - yeah, those guys in BETWEEN the oil producers and consumers who contribute absolutely NOTHING to the production or transportation and refining of the oil - they are the hedge-fund carpetbaggers who have jumped from the construction and mortgage fund investments, over to oil commodities - and from all outward appearances, are doing as well or better than when in the mortgage investment business!
SURE, if "big oil" makes the same 10% profit regardless of the base price of the raw crude, why should they CARE what the crude costs? Just like the trucking industry, why should they care what the price of diesel is, if all they have to do is pass that price increase on to the shipper and consumer?
And, of course, THAT is exactly what IS happening!
UNTIL a change is made in the way unneeded profit-taking middle men are allowed to interfere with, and manipulate the price of fuel to the end user, what we are seeing now will continue - and don't let the "Capitalism/Free Enterprise" apologists divert focus away from the REAL culprits of upward spiraling fuel costs - we have been told by OPEC, the oil companies, and economy analysts, it has LITTLE to do with the oil company profit, and EVERYTHING to do with uncontrolled oil speculators!

