Saturday, September 01, 2007

No Price Gouging in '06 Oil Prices. Lies all Lies

How interesting that the FTC should find no profiteering or price gouging on behalf of the Oil Companies or the suppliers so says an article in the Washington Post.
I'll tell you what is actually happening at least from my point of view. The Suppliers and the refineries in the USA are purposely cutting down on the supply of gasoline in order to drive the prices up. the so called demand is purposely not being met driving up prices. Using excuses such as hurricanes and other minor disasters for the reasons for the slow down in production which as a result increases prices. The war in Iraq which has caused nuch hatred for the USA has had an influence on friends of these countries to follow suit restricting or slowing production driving up the price of crude oil.
Yes I agree that part of the problem is demand fueled by our obsession with gas guzzling cars and a lack of incentive to switch to alternative fuels. That and the governments lack of incentive to give tax breaks to farmers growing agricultural products aimed at the bio-fuel market. There is some truth to their argument but the rest is just plain hog wash.