About Oil and Gas
John H. Adler
April 24, 2006
When it comes to the price of gasoline, the sky is the limit.
Why?
Because the price is calculated daily based on what might happen and not on what is actually occurring.
It is possible that Nigeria will not produce and/or will cease temporarily to export oil.
Venezuela’s government might threaten to stop or slow export of oil to the United States.
Iraq is unstable, and you never know if and when the insurgents might blow up pipe lines.
Iran might decide to block oil exports to the United States or reduce output.
All this is possible. No one can predict what the future has in store. But these are events that might happen and are not happening now.
We, the citizens of the United States, are forced into continuous price increases for events that may never materialize.
Will we get the overpayment back if it doesn’t? Or will it remain in the deep pockets of the oil industry as windfall profits?
I realize that business is traditionally run this way basing prices on repurchasing costs. But this is not business as usual. We are dealing with a commodity that is necessary for the very livelihood of many. I can not understand why our government is sitting idly by while the profits of the oil cartels go through the ceiling. How much influence does that industry have on the American government?
The news media occasionally reports White House and Congress’ feeble complaints against oil interests. But do they really intend to take action or are these merely gestures with an eye on the next election?
Why?
Because the price is calculated daily based on what might happen and not on what is actually occurring.
It is possible that Nigeria will not produce and/or will cease temporarily to export oil.
Venezuela’s government might threaten to stop or slow export of oil to the United States.
Iraq is unstable, and you never know if and when the insurgents might blow up pipe lines.
Iran might decide to block oil exports to the United States or reduce output.
All this is possible. No one can predict what the future has in store. But these are events that might happen and are not happening now.
We, the citizens of the United States, are forced into continuous price increases for events that may never materialize.
Will we get the overpayment back if it doesn’t? Or will it remain in the deep pockets of the oil industry as windfall profits?
I realize that business is traditionally run this way basing prices on repurchasing costs. But this is not business as usual. We are dealing with a commodity that is necessary for the very livelihood of many. I can not understand why our government is sitting idly by while the profits of the oil cartels go through the ceiling. How much influence does that industry have on the American government?
The news media occasionally reports White House and Congress’ feeble complaints against oil interests. But do they really intend to take action or are these merely gestures with an eye on the next election?