Everyone is painfully aware of the high gas prices, especially over a holiday weekend. And everyone knows they are only going to get worse. I don’t necessarily blame the oil companies. They are “for profit” organizations and we are a capitalist country. At least for now.
Here is a price breakdown for a gallon of gas published by the California Energy Commission For May 19, 2008.
Distribution Costs
Marketing Costs and Profits $0.06/gal
Crude Oil Cost $3.03/gal
Refinery Cost and Profits $0.19/gal
State Underground Storage Tank Fee $0.01/gal
State and Local Sales Tax $0.29/gal
State Excise Tax $0.18/gal
Federal Excise Tax $0.18/gal
Retail prices $3.95/gal
The price of Crude Oil is the biggest expense and 70% of our crude oil comes from foreign sources, primarily Saudi Arabia.
I blame our politicians and the way they are dealing with the Middle East. Also for NOT allowing exploration and drilling on US soil. Our politicians are so out of touch with the average US citizen, they have become dangerously ineffective. Our own politicians and the special interest groups that financially support them are destroying this country.
In a New York Times article dated May 17, 2008 entitled “Saudis Rebuff Bush, Politely, On Pumping More Oil”. It discussed President Bush’s second unsuccessful visit to Saudi Arabia to talk to King Abdullah about increasing oil production. Production was increased slightly but would not amount to any change of price at the pump.
This is an excerpt from the article….
“The White House billed the visit on Friday as a way to celebrate 75 years of United States-Saudi relations, but that relationship, while strong under past presidents, especially Mr. Bush’s father, has grown strained under this president.
Mr. Hadley told reporters recently that “the Iraq war was a stress” on the relationship. Jon Alterman, a Mideast expert at the Center for Strategic and International Studies, said Saudi confidence in the United States has been “extremely shaken,” over the war as well as what Saudis perceive as Mr. Bush’s lackluster effort on behalf of the rights of Palestinians.
“They’ll be polite,” Mr. Alterman said, “but they’re not really going to put themselves out to help this president.”
What is this? Is this punishment from the Middle East for our support of Israel and our involvement in Iraq and Afghanistan?
Is this how the Middle East is going to retaliate? Economic Terrorism? They won’t have to nuke us or blow up anything. They will just hold our whole country hostage. They will destroy our economy via oil or the lack there of. If they can’t beat us on the battlefield, they will beat us on Wall Street. They are going to squeeze the life right out of us. Other countries such as Mexico and Venezuela have reduced production as well. Why? Mexico and President Felipe Calderón have immigration issues with the US? Venezuela’s President Hugo Chavez is a sworn enemy of the US with terrorist ties to Libya. Why are we allowing ourselves to be held hostage by these third world countries?
I say….drill for oil in the US where ever it is. Off shore, Alaska, Montana…where ever. We need to become independent of foreign oil. And we need to do it now!
We also need to utilize the technology that has already been developed and produce MORE energy efficient vehicles. Vehicles less dependent on oil. AND…coal to oil production. The technology is there and it’s efficient. WE have enough coal to produce enough oil to supply this country for 200 years.
And, I DO NOT think bio-fuels are the answer. The production of bio-fuels in the US is doing nothing but putting our food supply in danger. Farmers are growing crops for bio-fuel production and not human consumption. This is already affecting food supplies. Plus it costs more to produce bio-fuels than what we can get for them. But that’s OK it’s subsidized by the Federal Government. Anyone else see a problem with this?
Nuclear power, wind power, hydro power, solar power. We need to utilize it all or what is going to happen is countries like Saudi Arabia are going to start dictating our foreign policy in exchange for crude oil. Or…we’ll just go take over some third world oil rich country and just take the oil. I think either choice is unacceptable.
Just something to think about.
Ms Sparky
