Secret Squirrel has noticed the ever increasing price of gasoline and commences to consider what is the actual reason for such an increase......it's the oil companies,they're calling the shots,they're pulling the strings, in Congress, in The Senate, those of the President.Whenever they increase the price of gasoline, they increase their profits taken from a finite captive audience, in the hippee terms of the Sixties, "It's a corporate rip off!"Price gouging and it's relative price fixing have
unquestionably been applied successfully in concert with each other and in concert with The Oil Companies, and The "President(read also an influenced and lobbied Congress/Senate).The biggest oil companies have stifled competition to raise
prices and make record profits,and unquestionably they have knowingly, and with the collusion of members of Government,through various forms of influence and influential ,shall we say, lobbying,affected a price gouging,price fixing regimen of function,the status quo.
Whenever gas prices spike, calls mount to increase oil production in the United States. Then experts point out that this won't make a dent in gasoline prices. And politicians ignore them and keep calling for more oil drilling. Today President Obama went along with these calls by announcing plans to expand drilling in Alaska, and speed new exploration offshore,which doesn't have much relevance as,face it, gas consumption,yours, is basically fixed isn't it.....you only need and use so much,not more than you need,or use. Obama agrees to speed drilling, but don't expect it to help gas prices,it means nothing. ... Increasing drilling won't decrease gas prices for reasons mentioned,gas prices rise,profits rise, gas prices drop,profits drop. Yes there has been a steady rise of gasoline prices.When it's noticed, and mentioned, it drops a few cents and sits a bit..........then it increases again repeating the pattern, so in 1997 it was $1.23 per gallon, and now is about $3.05,in 2011.
Well there is supposed to be the law,the economic laws,the law of supply and demand, increased demand lowers prices for a commodity, but noticeably, America doesn't follow this LAW, indeed what with the oil companies the reverse is really true. You see, as gas consumption is really fixed in America, i.e. there is as much use as there is.there is a set market of consumption for a commodity such as gas, it's basically, face it, determined by the amount of cars on the road consuming you
know.If there is an increase it is a fixed calculable increase in consumption and only by that fashion. Increasing price then increase further sales, hence profits. A decrease would lower profits, but if determinable and increase in price would offset. Increase increase increase. One can't fail to notice, as well, that prices rise in virtual concert with all companies,within days of each other, upwards, narry does one keep the price lower to increase profits by increasing sales in quantity...no indeed,it just wouldn't be sporting nor fair to the other companies who raised their prices would it now?
One also sees that when there is a drop in oil prices, the price at the pump remains, and further yet,increases.Obama increasing oil production within the United States has absolutely no bearing on price of gas at the pump in America, it
is set, by the oil companies,and one suspects with governmental collusion. You see the oil companies didn't increase said increases in drilling,the oil companies did, really, and if oil companies had to ask, could he, would he say no........ hhmmmmmmmmmmmmmm,speed drilling,drill more, doesn't the oil belong to these oil companies........................or thence it IS the US government controlling things, hence profits,hence price of gas in America.You see if increased production occurs, this has no bearing on increased consumption, as the increased production implies shortage, and there is and are no shortages of gas, there never are.Increasing production of gas does not have bearing on consumption either as you cannot and never ever do consume more than you need.
Let me explain it like this, the seasonal summer drought means I cut my grass less times, I consumed only 2 1/2 gallons of gas this summer, because that's as much as was needed, given a bad summer when I have to cut more, it could be 5 gallons, hence that is my consumption, only what I need..........this is true for all who cut their grass, but as always with actual figures on grass cutting it will vary and level out including ALL of America, hence constant fixed consumption of necessity regardless of available quantity of said gas.The same is true of cars, increase gas prices and some may drive less, yes, consume less, not more, due to cost, then make available more gas, and so what, the price is there,they're not running to consume more since there's more available, they're consuming only what they need,what they actually need.Increasing gas prices will not increase gas consumption, nor will making more gas available cause increased gas consumption since gas consumption is fixed.
In 1978, U.S. gasoline consumption was about 7.4 million barrels per day
http://www.indexmundi.com/energy.aspx?product=gasoline&graph=consumption
Source: United States Energy Information Administration
Consumption Thousands of Barrels per Day...(42 US gallons per barrel)
year consumption change
1997 18,666.60 1.82 %
1998 19,097.87 2.31 %
1999 19,403.20 1.60 %
2000 19,883.51 2.48 %
2001 20,077.91 0.98 %
2002 20,186.03 0.54 %
2003 20,404.55 1.08 %
2004 20,867.42 2.27 %
2005 21,166.90 1.44 %
2006 21,472.00 1.44 %
2007 21,642.91 0.80 %
Present day, 2011, consumption is about 22,000.00 so there's been a 4,000 per rise 1997 to present.
http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption
Motor Gasoline Consumption by Country
Rank Country consumption (Thousand Barrels per Day)
1 United States 9,285.67
2 China 1,285.53
3 Japan 1,023.96
4 Mexico 744.94
5 Canada 724.81
6 Russian Federation 672.05
7 Germany 492.92
8 United Kingdom 410.05
9 Iran, Islamic Republic Of 403.29
10 Saudi Arabia 347.16
11 Australia 331.26
12 Brazil 331.18
13 Indonesia 321.52
14 Italy 288.25
15 Venezuela 269.29
From........
http://www.indexmundi.com/energy.aspx?country=us&product=gasoline&graph=consumption
and at
http://www.nationmaster.com/graph/peo_pop-people-population&date=1997
US Gasoline Consuption Per Year, in Thousand Barrels per Day
Year Gas TB/D Change Population
1997 8,016.84 1.60 % 272,657,000 $1.23/us gallon
1998 8,253.42 2.95 % 275,854,000
1999 8,430.80 2.15 % 279,040,000
2000 8,472.06 0.49 % 282,224,000 $1.60/us gallon
2001 8,610.03 1.63 % 285,318,000
2002 8,847.83 2.76 % 288,369,000
2003 8,934.90 0.98 % 290,810,000
2004 9,105.41 1.91 % 293,655,400 $2.01/us gallon
2005 9,159.26 0.59 % 296,410,400
2006 9,252.53 1.02 % 298,988,100
2007 9,285.67 0.36 % 301,139,947 $2.80/us gallon
2010 312,090,000 $3.05/us gallon
2011 $3.63/us gallon
So from 1997 to present the price per gallon at the pump has tripled,though population rose only 12.6% Public Citizen estimates that Big Oil has taken in a quarter of a trillion in profits under the Bushes. Two-thirds of adults in a recent poll said gas prices had caused them "financial hardship."It just gets worse.
And in 2011...........
http://www.voanews.com/english/news/middle-east/economy-and-business/Oil-Company-Profits-Surge-120870129.html
Major oil companies like ExxonMobil and Shell are reporting a surge in profits as crude oil prices rise and energy demand grows.ExxonMobil said Thursday that the firm made nearly $11 billion in the first three months of this year, a 69 percent improvement over the same period a year ago.Shell reported more than $6 billion net income for the quarter, a 22 percent gain over the same three month period last year.In the United States, higher energy costs are blamed for slowing economic growth as drivers cope with sharply higher gasoline prices. That is why higher energy prices are becoming a key issue for voters and politicians.
Of course, we realize,don't we, that increases in sales of a quantity of a commodity,such as gasoline, increases profits, but in cases where sales of a given commodity are limited but purchase quantity/necessity,increases in price of sold
commodity,such as gasoline, increases the profits as well.If they now decrease the cost of gasoline, their profits will drop accordingly,something they're loath to do having discovered that by increasing the price of gasoline,say from 1997 levels of
$1.23 per gallon, they're making much more in 2011 selling the same gallon at $3.63. It's been done slowly, but the effect of what they have presented as nickle and dimeing, has had a major effect on your pocket book and also on THEIR profit levels.
Some have woken up to fact that 74% of Americans regard the gasoline price rises as being gouging/price fixing......
http://rt.com/usa/news/gas-price-fixing-investigation/
Here commences the informative informational news content epistle,,,,,,,
US Senate Democratic leaders set a letter to the Federal Trade Commission requesting a formal investigation into whether oil companies have intentionally restricted the supply of gasoline to manipulate consumer prices.Democratic Senator Claire McCaskill made the push for the letter following a meeting on Capitol Hill where executives from America’s major oil companies testified and were questioned on why major oil companies received large tax benefits and subsidies. Many Democrats feel the hand-outs to big oil need to stop, but the industry is defiant.
“At a time when major refiners and oil companies are making record profits and American families continue to struggle with gasoline at record prices the idea that refiners may be manipulating the market to keep prices artificially high goes beyond reproach," said a statement released by Democratic leaders. "It is incumbent upon the Commission to ensure that the American
people are protected from this type of manipulation. Accordingly, we request that the Commission open a full investigation into these allegations of wrongdoing and to determine the impact this behavior, if confirmed, has on regional and national gasoline prices." McCaskill, in her push for FTC intervention, cites a report that shows oil companies are only using 81.7 percent of their overall capacity – a 7 percent decline for last year.“The rise in the price of oil is certainly a driving factor behind the recent rise in gasoline prices, but concerns have been raised that while gasoline use is declining, US gasoline inventories remain below average and refining margins continue to rise. According to information posted by the Energy Information Administration US refiners are using only 81.7 percent of
their capacity, a decline of 7 percent from the same time last year. Moreover, since the beginning of 2011 U.S. refiners have
seen over a ninety percent increase in their refining margins. While some have argued that this increase is due to potential impacts from recent flooding along the Mississippi River, this cannot justify the steady increases in their margins since January of this year,” said the letter to the FTC.
here ends the epistle....
Politicians have realized the price of gasoline is becoming a contentious issue, and offer manipulating prices downwards for electoral gains,recall that 2012 is an election year,but it is the epitome of low-hanging fruit,and once elected, it won't occur, for in doing so, it merely confirms the price gouging,price fixing collusion of members of The House Of
Representatives,The Presidency,and, of course, Big Oil.Sarah Palin wrote a post March 15 headlined the “$4-Per-Gallon President.”,Obama, of course. In her blog, she blamed the president,but actually it is The President, AND The Oil Companies, as it has ever been in the past,so is it now, and ever shall be,and is and would be and also even if she were the President ,everybody's been getting the business......... it's BIG BUSINESS.
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