The recent seizure of British Sailors in the Gulf has fueled a rising cost of Crude on the markets, and guess what, it’s also signalled an increase in the price of gas at the pump and elsewhere. Now that isn’t a surprise, though perhaps I wonder how much longer will we, the consumer, be taken in by the bullshit of Big Oil Companies, and their lackeys, Bush and Harper?
This constant playing on fear is wearing thin. Just like the Boy Who Cried Wolf so often, the danger is obvious here too. The more these Oil Companies bullshit us, claim it is merely a reaction to the tension or to unusual demand spikes, the less we will believe them, until it eventually becomes true.
Consider that the price per barrel is at around $65, and that it wasn’t until the price last hit the record high of just over $70 a barrel, that gas at the pump went to the $1.15 per litre price. Funny, that’s suddenly the price now at the pump, and yet the cost per barrel of crude is still down from that high point.
It isn’t an unusual winter or spring either. I mean we aren’t sitting with 6 feet of snow on the ground, temperatures are milder for the most part. In fact they have claimed it was a record mild winter, so demand surely wasn’t all that great over the last little while.
Iran has been threatening the oil route for over a year now. The tensions haven’t eased, but increased as well, making this latest venture into brinkmanship inevitable, yet the price of crude mostly went downwards from its high mark of $70+ a barrel.
Funny but prices at the pump never went down to previous marks, even as the price per barrel did.
For the sake of argument, lets use these figures. Crude $50 and gas pump price $1/litre. Crude $60 and gas pump $1.10/litre, and then Crude $70 and gas pump $1.20/litre. Now assuming that the claim by the Oil Companies is that rising tensions results in higher crude prices, and is their justification, then why does the price at the pump not fluctuate accordingly? If crude is at $65, it would stand to reason the pump price would be at the $1.15/litre mark, and when it drops to $50 a barrel, shouldn’t one expect the pump price to drop back to $1?
Yet in reality it never does. Rising Tensions in the Gulf, or just pillaging the pocket books of consumers?
Then we had Bush with his early Daylight Savings Time crap, that oh yeah we had to follow along with. The whole purpose was so we would use less energy, and so if Bush and Harper are right on that, then obviously the combination of a mild winter, and early Daylight Savings, should mean a considerable drop in demand.
If ‘supply and demand’ are major factors in determining the price at the pump, one would assume that as demand drops, prices would drop. Funny, I didn’t see that happen, did you? Oh right, the explanation was that they were frightened of potential threats to the supply from the Middle East. Funny, the price per barrel was generally lower than at the peak of the ‘Scare Threats’. Still didn’t see any real drop at the pumps, did you?
This constant edging upwards, isn’t about tensions, or demand, but about corporate profits. Oil Companies, major backers of Bush and Harper, are raking in record profits each quarter, despite the alleged complaint that it is the taxes that make gas so high at the pump. Right, funny thing is, the taxes per barrel haven’t changed over the last year or two, and in fact have dropped up here. GST is down a whole per cent. Didn’t see that reflected at the pumps either.
Like our Utilities are controlled by government agencies, and I wonder, why not the oil industry? I mean billions of tax dollars has gone into the Alberta Oil Sands, and the oil industry is a vital part of our economy no different than Hydro is. So why shouldn’t we regulate it as well? Make them prove why they need a price hike, instead of allowing them to feed us their utter bullshit, while the execs get huge bonuses, and we get stuck with the bill?
The cost of fuel determines part of the cost of food. No matter where you live. It adds costs to simply doing business, in relation to heating costs, to delivery costs of goods both in and out. So with so much at stake in our economy, would make perfect sense that like Hydro, like the Telephone, this aspect of our economy should be held to strict controls.
It isn’t about private enterprise either. I mean unreasonable and excessive profits are not something we accept. Banks can’t charge 60% interest, so why should oil companies not be held to similar standards?
Oh right, I forgot, they own Bush who controls Harper.