It’s NOT the Oil Companies “Gouging” at the Pumps!

It’s NOT the Oil Companies “Gouging” at the Pumps!

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I don’t expect this article to be very popular with readers… but here goes:

It is NOT the oil companies gouging you and me at the gas pumps. No, not by a long shot! The real culprit is environmental regulations. We have our own oil, but the “greenies” will not allow us to extract it and refine it and get it onto the market. All those ridiculous environmental regulations do nothing but insure our dependence on foreign oil. As long as they stand the US will continue to have war after war in the Middle East, and elsewhere, to maintain the “free flow of oil”. THAT is an unpleasant truth Americans don’t want to deal with. But there it is.

There is an article by Brian P. Simpson we recommend you read. Mr. Simpson is an assistant professor of economics in the School of Business and Management at National University in San Diego and the author of the book "Markets Don't Fail". The article we recommend is titled: “Who’s to Blame for the High Gas Prices” published in the April 11th, 2005 edition of SignsonSanDiego.com. You’ll find it at:

http://www.signonsandiego.com/uniontrib/20050411/news_mz1e11simpso.html

But… how about those per gallon prices? By far the largest chunk of those per gallon prices is courtesy of the US Government AND your state government. They are taxes!

Federal tax on a gallon of gasoline is 18.4 cents per gallon. Here, in North Carolina, state tax on a gallon of gasoline is 26.6 cents per gallon and the same on diesel fuel… plus 0.25-cents per gallon inspection tax. The rate increased 2 cents per gallon from 24.6 cents per gallon to 26.6 cents per gallon on 1/1/05. It consists of a 17.5 cents per gallon flat rate… plus a variable rate of 9.1 cents per gallon wholesale component based on a 7% average wholesale price component based on prices from 4/1/04 to 9/30/04 (the average price for that period was 130.34 cents per gallon).
(Courtesy of: http://www.gaspricewatch.com/usgastaxes.asp )

You can find the break down for your state at www.gaspricewatch.com as well. You might want to take a look.

I came across an article by J.B. Williamson, a few days, ago titled: “Who is "gouging" Whom at the Pumps?” . We recommend you read it. You’ll find it at:

http://www.jb-williams.com/4-25-06.htm

Another article by Mr. Williams, over at “Newsbull.com ”, is worth your while, as well. It is titled: “When Gasoline Reaches $5.00 per Gallon...Thank Liberals!” You’ll find it at:

http://www.newsbull.com/forum/topic.asp?TOPIC_ID=61272

Another interesting and telling point is this: ““Since 1981 when refineries operated at 69% of their capacity, the number of refineries in the U.S. has dropped from 324 to 153.” These troubling statistics are from an article titled: “U.S. government to blame for high gas prices” at:

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=46228

In the same article Marilyn Barnewall goes on to list the refinery closings: “According to the Energy Information Administration, in 1995, Indian Refining in Lawrenceville, IL, Cyril Petrochemical Corp. in Cyril, OK, Powerine Oil Co. in Santa Fe Springs, CA, Sunland Refining Corp. in Bakersfield, CA, and Caribbean Petroleum Corp. in San Juan, Puerto Rico were closed.

In 1996, Tosco in Marcus Hook, PA was closed. So, too, were Barrett Refining Corp. in Custer, OK, Laketon Refining. In Laketon, IN, Total Petroleum, Inc. in Arkansas City, KS, Arcadia Refining. & Mktg. in Lisbon, LA, Barrett Refining. Corp. in Vicksburg, MS and Intermountain Refining. Co., Fredonia, AZ.

In 1997, Gold Line Refining. LTD in Lake Charles, LA was closed. So, too, were Canal Refining Company and Pacific Refining Company in Hercules, CA.

In 1998, Gold Line Refining Ltd. Of Jennings, LA was closed. So, too, were Petrolite Corp., Kilgore, TX; Shell Oil Co., Odessa, TX; Pride Refining, Inc., Abilene, TX, and Sound Refining, Inc., Tacoma, WA.

In 1999, TPI Petroleum, Inc., of Alma, MI was closed.

In 2000, Pennzoil of Roseville, PA, Berry Petroleum of Stephens, AK, and Chevron of Richmond Beach, WA were closed.

In 2001, Premcor of Blue Island, IL was closed.”

Ms. Barnewall goes on to point out that: “The total loss of 830 thousand barrels per day of refined oil was lost with these closings.”

Now, this is not some "nut” making these claims. Marilyn Barnewall is the Author of several banking texts, she has written extensively for the American Banker, Bank Marketing Magazine, and was U.S. consulting editor for Private Banker International (Lafferty Publications, London/Dublin). Barnewall, in 1978, was the first female to be named vice president in charge of a major loan and deposit portfolio at Denver’s largest bank. She started the nation’s first private bank, resigned to start her own firm and consulted for banks of all sizes in America and other countries. In June 1992, Forbes dubbed Barnewall “the dean of American private banking.”

(From: http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=46228)

Now… here’s the thing: the big oil companies do not set the price for oil or for the gasoline you buy at the gas pump. Nope! The price is set by commodity traders all over the world… but most likely in London, Tokyo, and in New York. Ben Stein in his article entitled “Who's to Blame for High Oil and Gas Prices?” says: “Oil is a world commodity like tin or copper or rubber or coffee. The price is set by traders anticipating supply and demand”. You’ll find Mr. Stein’s article at:

http://finance.yahoo.com/expert/article/yourlife/2973

Now, look… I get as angry as the next guy when I pull up to the pumps and see gasoline selling for $4.00.9 a gallon (as I did a day or two ago). But the anger we American motorists feel should be directed at the source of the problem and stop blaming the closest target at hand, the service station owners and the oil companies.

I have been careful in this tome to give you sources from which you can gain additional information. Some of you will. Others will not bother to click the mouse a few times and enlighten yourselves as to the true culprits of the high gasoline prices at the pump.

There is no oil crisis! The “problem” we are having with the prices at the pump is artificial, created through the joint efforts of the government and the commodity traders all over the world.

The Congress can haul the oil company execs up to those Kangaroo Courts called “Congressional Hearings” all they want… and it will do absolutely nothing to ease the price crunch…. nor create another single drop of oil. Nothing. If, on the other hand, Congress was serious about lowering the gas prices, they would back off the freeze on extracting the oil from ANWR, from the outer continental shelf of the US, ease environmental restrictions and regulations so that our own oil could be had (and this includes the shale oil available in this country). And while they were at it, they would ease the environmental restrictions on oil companies, themselves, and encourage them to build as many refineries as they need to put more gasoline on the market.

Is Congress going to do that? No! Not until the American people get mad enough to forced them to do it. Congress is held in the iron grip of the socialist left and that includes the “Greenies”. As long as it remains that way there will be no room for “common sense” in the government of the US., and gas prices at the pump will continue their upward climb.

There is no end in sight to the high gas prices. None of the three candidates for President is inclined to show the “backbone” needed to get this artificially created problem handled.

If you think it is bad now… wait ‘til cold weather next winter and people begin to freeze to death, in their cold homes, because they cannot afford the price of heating fuel to heat their homes!

America elected a socialist Congress in 2006 and is set to elect a Marxist/Socialist as President... or a Democrat running as a Republican for President. The choice of either one will do absolutely nothing to reduce the “Pain at the Pump” nor the sky rocketing food prices.

Maybe it is time for those “Angry White American Men” we hear the Left complaining about so much, to show themselves and put that anger to good use… for the sake of the country.

Longstreet

© Commentary copyrighted by Longstreet May 2008

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