Tuesday, August 15, 2006

Why gasoline is so high

This is not really anything that takes a lot of analysis to figure out. The point is, what are we gonna do about it?

The number of refineries in the U.S. is very small. They are all controlled by a very few companies. Supposedly, these refineries are running at capacity. These companies are now enjoying profits that are more than twice what they were last year. Why? Because they all decided to charge the oil companies (some of which own the refineries) more money, to increase their profits. Double profits, year over year.

So really, some parts of some oil companies decided to charge their parent companies more money. Therefore, the oil companies are just passing on the costs to consumers. Add to that increased oil prices, which are also passed on, and you understand the much higher prices.

What are you going to do about it? What CAN you do about it? Challenge yourself. Can you do anything? Are people high up in those companies laughing, because they know that we are at their mercy? That they have us over a barrel as much as the tax man does?

Then we are told that Americans are addicted to oil. Does that sound like someone is about to build more refineries? Not to me. If those refineries don't have any more competition, they will never lower the prices that they charge to refine the oil. One book that I highly recommend that people read is, "Fast Food Nation" (sold at Jamba Juice), which will illustrate just how the car companies and the oil companies have in the past plotted to get rid of other modes of transportation, and it will give you an idea of who really did kill the electric car. What can you do to help change things for the better of all?

No comments: