In a recent article, a writer extolled the oil companies for reducing the price of gas. The main reasons were the completion of switching over to summer blend, the price of a barrel of oil is now $88, the demand for oil in China was not what it was expected to be and the usage of gas in the United States is down because of the buying of lower mileage cars and reduced driving.
Let's take a look at his reasoning. In February, before the switch to the summer blend, the price of gas was about $3.60 a gallon. When they started the switch over the price jumped 40 or 50 cents a gallon even though there was no shortage. The switch-over lasted about a week, and it has taken two months to get the prices back to where they started — $3.60 a gallon.
In early 2009, oil had fallen from a high of $120 a barrel to around $85. Gas had fallen from a high of over $4 to $1.80 a gallon. This means the world price of oil does not influence our prices.
Did you know the U.S. is now producing more oil than it has in the last 30 years? Did you know that we are now exporting more oil than we are importing?
That means we are buying oil from countries that want to bury us, and it means we are selling oil to countries that want to bury us. Look it up for yourselves. We are exporting oil to China and Venezuela; millions upon millions of dollars to oil companies for tax breaks, incentives and exploration.
They claim they have to export because they can not make a profit because of the reduced demand in the U.S. Really? How much longer are we going to put up with this?