Texas Tea

Right now, as gas prices continually go up (yesterday I filled my car and it cost $296.15), millions of theories are circulating about the cause. Here are a few I’ve picked up here and there:

1. Oil companies are greedy bastards who screw everyone any chance they get.

2. George W. Bush got us into a retarded war that’s interrupting the supply of oil from the Middle East.

3. OPEC (Organized Petroleum Exporting Crimelords) is creating an artificial shortage to drive prices upwards.

4. China and India are increasing their demand like crazy and the supply has not increased so the supply is short.

5. Americans insist on driving gas-guzzling vehicles like the Suburban Subdivision which have worse fuel economy than an B-2 bomber.

Yesterday I was listening to… either Rush Limbaugh or Bill O’Reilly… I can’t remember which, and he proposed the following explanation… which I think nails it right on the head:

Liberal Democrats have long sided with Eco-Jihadist nutjobs to block new oil production. Anwar has more oil than Saudi Arabia, has no redeeming characterists, and is prime drilling and refining land. Unfortunately, drilling there might make it “less pretty.” Never mind that no American citizen has ever visited Anwar, because it’s roughly the same temperature as the dark side of the moon.

At the same time, India and China have drastically increased their consumption of oil, which means they are pouring boatloads of cash into the market. As everyone with a basic understanding of economics knows, lots of money being thrown at a limited supply always creates price inflation.

As long as there are countries with lots of money throwing their funds at oil, the prices will go up… until we increase supply, or reduce our own consumption. We’re not going to reduce our consumption… it’s not going to happen. Even as we speak, I’m considering purchasing a vehicle with WORSE fuel economy than my current vehicle. And I think I’m pretty much a typical American.

NOW, since the Democrats have blocked oil drilling in Alaska, we can’t increase our supply. But in true liberal nutjob fashion, they are attacking the oil companies instead of themselves. If they block new drilling, they can’t really blame the oil companies for higher prices… it’s the free market. The supply and demand relationship will dictate the price, and the only way to bring down prices is to increase supply. So there you have it.

Liberals want to take money from the oil companies… Hmmm. They weren’t complaining when the oil companies were investing billions of dollars in research, exploration, and drilling. No. They are jealous that oil companies invested in the business and now they’re reaping the rewards.

The free market will correct itself, and if people can’t afford gas, they’ll just have to walk.

Incredipete

  3 comments for “Texas Tea

  1. April 28, 2006 at 10:49 am

    As long as people keep buying cars that require an extra vehicle to carry its gas tank, the oil companies are going to keep jerking off while they raise the gas prices (and give each other $400 million retirement deals – I hope that guy takes that money and gets a WHOLE NEW FACE – yikes). It’s supply and demand. I hate that it costs me $30 to fill up my stupid Corolla, but I’m not walking to work anytime soon.

  2. April 28, 2006 at 10:58 am

    You got it, babe!

  3. Greg
    May 2, 2006 at 11:29 am

    You forgot to mention that while oil companies make $0.23 per gallon on gas, spread out accross the station owner, refiner, driller, scheduler, etc. The average tax on gasoline is $0.46 per gallon (ridiculously more in California).

    Also, the reason oil companies are profiting more now than in the last 10 years is because now the price of oil makes it cost effective to drill in mare places. So now the oil companies can drill and charge the market rate for oil in more places, rather than limiting themselves to a few cost effective drilling areas and making a small profit on refining the oil purchased from other outlets.

    Just something I picked up on while learning the basics of our economy. Something far to few people decided to do in college.

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