Business Headlines
| High Gas Prices |
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| Written by Charlie Reese |
| Tuesday, 17 March 2009 21:43 |
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With gas prices fluctuating as they have over the past year, from the $3 plus range about a year ago, to as much as $4.50 this past summer and now in the $2 price range at the end of the year, it surely makes you wonder why gas prices are high sometimes, but plummet rapidly when the economy is in poor health. It seems a bit suspicious, if you ask me.
With gas prices fluctuating as they have over the past year, from the $3 plus range about a year ago, to as much as $4.50 this past summer and now in the $2 price range at the end of the year, it surely makes you wonder why gas prices are high sometimes, but plummet rapidly when the economy is in poor health. It seems a bit suspicious, if you ask me. Asking why gas prices are high seems to launch a bevy of smoke and mirrors, the traditional red herring. When gas prices went sky high, we heard cries lamenting the 'fact' that the world was fast running out of oil. During this same period, the big oil company profits were coming in at $10 billion and more, in a single quarter. Surely these numbers angered the average driver, but we certainly weren't in control of the pricing. We just had to cough up whatever price was posted on any given day. Somewhere in this time frame, the public received an additional slap in the face. We were chided at being addicted to oil. Anyone is going to recognize this bait and switch. Now we have a new explanation as to why gas prices are high. It's our fault because we have no choice but to drive cars that burn this expensive commodity. This provides the perfect lead in to justify why we must drill for new sources of oil, oil that is known to be in such places as the Alaskan wildlife refuge. Wait. Hold the phone. An earlier explanation of why gas prices are high clearly stated that the world was running out of oil, and fast! The media soon began running segments trying to determine just what the real reason was. Reporters quizzed oil company executives, government officials and gas station owners, attempting to get at the truth. The oil companies claimed that hurricane damage had cost them tremendous sums of money to rebuild oil rigs in their valiant efforts to continue to supply America with oil, to fuel cars and homes. Government officials claimed that our oil reserves were low, while pointing the finger at OPEC as the real reason why gas prices are high. Gas station owners unanimously agreed that it wasn't their fault. Oil companies set the prices and their profits amounted to pennies on the gallon. Personally, the only story I buy is that of the gas station owners. It is a fact that they make pennies on the gallon. This all still leaves us in the dark as to why gas prices are high. OPEC apparently adjusts production according to demand. It's not for a lack of product. During the past summer's peak in prices, people were strapped to the max. Hardly anyone filled their tank, buying just enough to get them to work and back until pay day. If it's a question of supply and demand, why was the supply restricted? Citizens took their 'oil addiction' to heart, reducing their driving to the absolute minimum. Now, in the cold months, demands for heating should logically bring an increased cost. Some news stations are now speculating gas prices will soon be at a modest $1 per gallon soon. This is why the question of why gas prices are high remains one of the great mysteries of the modern day. Hey, let's get those green energy sources going, full steam ahead! Enough is enough! About the Author: |
