Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

The Truth About High Gas Prices

Commodities / Gas - Petrol Jul 13, 2014 - 04:40 PM GMT

By: Walter_Brasch

Commodities

Gas prices at the pump during the July 4th extended weekend were the highest they have been in six years. This, of course, has little to do with supply-and-demand economics. It has everything to do with supply-and-gouge profits.

Over the past decade, the five largest oil companies have earned more than $1 trillion in profits. Last year, the Big Five—BP, Chevron, ConocoPhillips, Exxon Mobil, and Shell—earned about $93 billion in profits. Their CEOs last year earned an average of about $20 million. Included within the profits is $2.4 billion in taxpayer subsidies because it’s hard to make a living when your hourly wage, assuming you work every hour of every day, is only $2,283.


“We have been subsidizing oil companies for a century. That’s long enough,” President Obama said more than a year ago. The Senate disagreed. Forty-three Republicans and four Democrats blocked the elimination of subsidies. Although the final vote was 51–47 to end the subsidies, a simple majority was not enough because the Republicans threatened a filibuster that would have required 60 votes to pass the bill. A Think Progress financial analysis revealed that the 47 senators who voted to continue subsidies received almost $23.6 million in career contributions from the oil and gas industry. In contrast, the 51 senators who had voted to repeal the subsidies received only about $5.9 million.

For a couple of decades, the oil industry blamed the Arabs for not pumping enough oil to export to the United States. But when the Arab oil cartel (of which the major U.S. oil companies have limited partnerships) decided to pump more oil, the Americans had to look elsewhere for their excuses. In rapid succession, they blamed Mexico, England, the Bermuda Triangle, polar bears who were lying about climate change so they could get more ice for their diet drinks, and infertile dinosaurs.

This year, the oil companies blamed ISIS, a recently-formed terroristic fringe group composed primarily of Sunni Muslims, who have opposed Shia Muslims for more than 14 centuries. Think of the Protestant–Catholic wars in Ireland. Because ISIS was laying a path of destruction through Iraq, the oil companies found it convenient to declare that oil shipments were threatened, and then raise prices, salivating at their good fortune that terrorists had come to their financial assistance during the Summer holidays.

However, because the oil companies have laid a thick propaganda shield upon the America people to make them believe that fracking the environment and destroying public health, while yielding only temporary job growth, will lead to less dependence upon the Arab nations and lower costs to Americans, the Industry has to come up with some excuses to drill the taxpayers.

Through deft journalistic intrigue and a lifetime of investigative reporting, I was able to obtain insider information from the ultra secret Gas and Oil Unified Greedy Excuse Maker sub-committee (GOUGEM). I have not been able to verify the transcript, but in the developing tradition of 21st century journalism, that doesn’t really matter.

“We have a problem,” declared the GOUGEM Grand Caliph “We have run out of excuses. Last year, we had to find excuses not only for the Summer vacations, but also to justify our surreptitious funding of the Benghazi investigation.”

“There must be a hundred different ways to nail Obama for this year’s increase,” declared the Sunoco representative.

“What if we claim that Obamacare caused gas prices to go up for ambulances,” said a newly-appointed representative from the Hess Corp.

“Tried it last year, but we couldn’t get much traction,” said the Grand Caliph. “Only Fox, Limbaugh, and some guy broadcasting through a tin cup from his room at Bellevue picked it up.”

“Afghanistan!” shouted the Marathon representative. “We’ve gotten good mileage from blaming the war for the cost of gas.”

“Yeah,” said the Tesoro rep sarcastically, “while we’ve been reaping enough excessive profits to build a water park at every one of our executives’ McMansions. I’m afraid the American people after 13 years have finally caught on to that scam.”

“If not Iraq and Afghanistan,” how about a new war? We invade Switzerland,” the ConocoPhillips rep suggested, “and claim we’re protecting the world from weapons of mass Swiss Army Knives. Every Republican and a few Democrats will back us on that.”

“It only works if there’s oil in Switzerland,” said the Shell rep, “and since we haven’t developed the technology to frack the Matterhorn, we’ll have to find another reason to raise gas prices.”

The BP rep suggested that the oil companies claim gas price increases were necessary because the price of Dawn detergent, used to clean oil-slicked marine mammals, went up.

The Chevron rep said they could blame the Treasury Department for their underhanded tactics in locating the companies’ tax-free stash in the Caymans. “How could anyone complain about us needing more income to pay our lawyers?” she declared.

The Valero rep wanted to blame the Veterans Administration. “We say we had to wait so long to get permission to raise gas prices that we had to do it ourselves,” he brightly said, and tagged that suggestion with the explanation that the companies could then claim they were being self-sufficient and not dependent upon the government. “The conservatives will love us,” he righteously declared.

After a few moments of idle chatter, something committees have perfected, the Exxon Mobil rep spoke up. “We don’t need an excuse.”

“You been inhaling too many fumes?” the Shell rep asked.

“Slip on a grease spot in one of your garages?” asked the Murphy Oil rep.

“We’ve always had an excuse,” the Shell rep whined. “Without an excuse, the motorist might not buy our gas.”

“Oh, they’ll buy,” said the Exxon Mobil rep confidently. “We’ve bought out and eliminated most of the alternative fuel sources, public transportation is in the pits, and no one walks. That leaves cars, and they all run on what we decide they run on.”

“So what’s your point?” asked the BP representative.

“It’s as simple as 1-2-3,” the Exxon representative stated. “One. We’re Big Business. Two. We’ve already bought the Republican-controlled Congress. Three. We don’t need to justify anything.”

By unanimous agreement, the gas bag cartel declared there would be a 10-cent a gallon hike by the end of Summer—and no excuse.

[Dr. Brasch’s current book is Fracking Pennsylvania, which looks at the impact of fracking upon public health, worker safety, the environment, and agriculture. The book--available at local bookstores and amazon. com--also looks at the financial collusion between politicians and Big Energy.]

By Walter M Brasch PhD
http://www.walterbrasch.com

Copyright 2014 Walter M Brasch

Walter Brasch is a university journalism professor, syndicated columnist, and author of 17 books. His current books are America's Unpatriotic Acts , The Federal Response to Hurricane Katrina , and Sex and the Single Beer Can: Probing the Media and American Culture . All are available through amazon.com, bn.com, or other bookstores. You may contact Dr. Brasch at walterbrasch@gmail.com

Walter Brasch Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules