Supply and Demand related to oil/gasoline
Consider this.
When the supply of oil/gasoline is low, prices go UP. When supply is UP, prices go UP.
It happens. When there is more oil/gasoline on the market than normal [due to conservation and reduced consumption via fuel efficiency and rising unemployment], market forces should force the price of oil/gasoline down. But, it is not at all unusual to see the price of oil/gasoline go UP when there is a surplus on the market.
What in the world does this mean?
Simple. There are other factors operating beyond supply and demand that move the price of oil/gasoline in the US, at least when it comes to actual transportation. So, who is playing with the energy market besides the speculators that Democrats like to blame for high oil/gasoline prices.
US Big Dem Gov is knowingly playing in the US market by placing stringent controls on US production on-shore and off-short. This caters to their “green” anti-capitalist environmental extremists as we reduce per capita consumption.
At the same time, [1] Obama and Big Dem Gov is giving Brazil billions of dollars to develop "their" own off-shore drilling, and [2] clamping down on the Canadian oil pipeline to the USA.
The US has a 250 year supply of oil/gasoline in the ground but production is down on Big US Gov lands as Obama creates permitting problems that throttle private production.
The muslim world oil/gasoline producers are in a self-created death spiral.
China and Japan are not oil/gasoline producers. They are huge buyers.
Iran does not have any refining capacity to speak of so they are importers of refined products.
The bottom line is that the average person has no idea why US drivers are paying more for gasoline at the pump when there is an ample supply of oil/gasoline in the ground. If the insider experts know, they are not talking.
By the way, oil/gasoline is less than $1.00 a gallon at the pump in Saudi Arabia, according to radio reports this week. Yet Obama says that we cannot drill ourselves to lower oil/gasoline prices.
So, in the meantime, what is the energy of the future that will make oil/gasoline obsolete. Nuclear? Electro-magnetic? What? It will evolve, in time, and that is a given. =TheRightJack 3/24/12
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