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Misconception: There is no "Supply" problem with crude oil. There is a supply problem with refined gasoline. We can't refine the crude oil fast enough to warrant an increase in production. But there is plenty of crude oil to be supplied. Not a problem there.
U.S. Oil Companies Gouging: Partially true and partially false. The gouging that happens is by the individual gas station owners. This weekend is a perfect example. Gas in Jacksonville was pretty steady at $3.80 a gallon. On Friday before memorial day the price at some gas stations jumped to $4.05. That is gouging. The price of a barrel of oil has been pretty flat for this week in fact it went down a little. This gouging gets wrongly blamed on the oil companies, it's the station owners that want to make some extra cash because we will increase demand by travelling over the weekend.
The oil companies are making profits largely by investing in oil over the last 50 years and it has paid off. Also, 4% of the cost of a gallon of gas is profit for the oil company, 16-20% goes to taxes depending on what state you live in. The best way to decrease the price of gasoline, is to increase supply, not in our power. Or, to decrease demand by introducing competition into the fuel market. Whether it be electric, Hydrogen, or ethanol, or something else. I still believe the best option is to drill for oil ourselves, and build nuclear plants to replace fossil fuel energy. If I could have it my way we'd build new refineries, drill for oil within the U.S. and build nuclear power plants. Then we'd be good to go and would need to rely on foreign oil. Oh yeah, and keep researching and developing ethanol.
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