Like the Johnny Carson character who was clairvoyant, I can tell you how the high gasoline prices will play out this Summer.
Remember, gasoline prices are driven by crude prices and lag the crude up and down. Hence, gasoline prices are just now hitting the record levels that crude has hit.
Here’s how this will be explained to you in Washington and through the media. You’ve bought this act before so they know it works. It’s already started. Big Oil will be called to Washington. The House Select Committee on Energy Independence and Global Warming will hold hearings. They will be asked why the Government shouldn’t take $18 billion in new taxes to fund renewable energy efforts. Also, why the polar bear shouldn’t be put on the extinct list limiting any efforts to utilize our energy reserves in Alaska. How can they put together a "select" committee in Washington?
The US refining industry is already taking some heat for the gasoline price run up. Demand is off 1% and mandated ethanol production is up 30% and refiners are expected to overproduce gasoline, hold inventories, and lose money so the Select Committee can make another decision that will drive prices up further by making less oil available.
The EPA tried to cut you some slack by delaying action to put the CO2 cap in effect. That will raise prices another 50 cents per gallon, minimum. Guess who’s suing the EPA to reverse this? California and Massachusetts and Clean Air Watch and the Sierra Club. I think we should let California and Massachusetts put it in. Let them see how they like the 50 increase. Let’s see what it does to their already strained state budgets.
Back to the gasoline price run up. I guarantee you Congress will point the finger at Big Oil. Nothing Congress has done or ever will do will be tied to higher gasoline and diesel prices. Big Oil is not very loyal to the US anymore since most are multi-national and can do business anywhere and do. They will just pass the $18 billion back to us. There will hearings, more hearings and endless sound bites. They will wake Teddy Kennedy up for the cameras. Another great conspiracy theory will be spun.
Until you have had enough and say, I’m not buying this crap anymore, you will pay and pay and pay. It will get much worse since we have no viable solutions to solve the problem and nothing will come of the hearings which have been held since 1973 with no results. It ain’t’ Big Oil it’s Big Dumb Government that’s hosing you. Let’s all sit by quietly and watch our economy self destruct because there might be a polar bear problem. Let’s get more and more dependent on foreign oil and imported gasoline. Let’s all buy the myth that some magic renewable fuel is right down the road. Let’s let the rest of the world laugh while we drive our Hummmers until there is no more fuel. Let’s let the environmentalists put this country out of business. Let’s create a world for our grandkids that you wouldn’t want a convict to live in. Go look at their pictures you have all over the house and repeat after me:"I just don’t care". Not enough to get off my ass and do anything about it.
