Everyone likes to complain about the price of gas. Gas Prices are at record highs. What can the US do about it? What can US consumers do about it?
This is the 3rd article in a multi-part series on gas prices in the United States. You can read part 1 (Why Does Gas Cost So Much? here. You can read Part 2 (Gas Prices are Cheap in the US) of the Gas Price Series here .
We Got Ourselves Into This
Most articles on gas taxes follow a template. The template is to blame Americans for living in the suburbs and driving SUV's. According to the experts and pundits we should all live in mud huts and not drive anywhere. I'm definitely not going to follow that template. The United States is, by most objective measurements, is the economic engine of the world. We didn't get that way but living in straw huts and riding bicycles to work.
So how did we get ourselves into this mess? The policies of the United States federal government and many state governments is to blame. The US depends on oil. Plain and simple, oil fuels our economy and our economy is the engine that drives the world.
The federal government and many state governments have hampered the exploration and drilling of oil in the United States. We have a lot of petroleum in the US. If companies were simply allowed to extract and refine it, we wouldn't be in this mess.
Many states like Florida, limit the exploration and drilling offshore. There are proven reserves in the Gulf Of Mexico that we can't get because Florida won't let us. That doesn't stop Cuba, India or China from drilling for oil in the Gulf. That's right, countries half way around the world are drilling for oil in our backyard while we sit back and twiddle our thumbs and hope for lower oil prices.
Not In My Backyard
No one wants on oil refinery in their backyard. Oil refining is a messy business. Yet, we all want a gas station right down the street. No oil refineries mean no oil. How much simpler could it be?
In fact a company named Hyperion wants to build an oil refinery in South Dakota of all places. The plant would refine oil that comes from Canada. However, they are running into resistance from environmentalists.
The Politicians Do What We Tell Them To
Guess what? Congress usually does what we tell them too. Unless of course the lobbyists get to them first. That means the American people are telling Congress that we want stronger regulations on the oil industry and specifically refining. Congress wouldn't have such a terrible energy policy if we didn't want it.
Thank Yourself For Higher Gas Prices
As long as we are getting our oil and gas from other countries we are at the mercy of any and all oil producing nation. But who's really to blame? Look in the mirror. Thank yourself for higher gas prices. If you really want to do something, let your congress men and women know how you feel.
Taking Exxon is not going to do anything to bring down gas prices. That's just political theater. It's easy to get mad at the oil companies. However, without them, how would you fill up your tank? Try to live without petroleum for a week and let me know it turns out. You might be fine during the summer but what about the winter?
We Need Oil
Ethanol, Wind and Solar are not ready yet. There is simply no way we can replace petroleum with any of this niche fuels. We need sane short term energy policies. It's fine to research replacements for oil. I'd be glad one day to drive a car that doesn't pollute. I don't think anyone is in favor of pollution.
However, wishing for magic power sources and lower energy prices has gotten us where we are at right now. We need to stop dreaming and wishing and start doing something. Let your politicians know how you feel. Put some heat on them and push for sane energy policies.
Read Part 4
In part 4, I’ll talk about what you can do now to reduce your fuel bill today. Read Part 4 (5 Ways to Save Money On Gas) Here.
Tags Enviromentalism Gas Gas Prices Oil Oil Prices Spending & Saving TaxesRelated Posts
- Gas Prices - Part 1 - Why Does Gas Cost So Much?
- 5 Ways to Save Money On Gas - Gas Prices - Part 4
- Believe It Or Not - Gas is Cheap in the United States - Gas Prices - Part 2
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Comments
6 Comments so far
[...] Comments High Gas Prices - What Can We Do About It? Gas Prices Part 3 - Wealthy Reader on Gas Prices - Part 1 - Why Does Gas Cost So Much?Sandy W. on IRS Where’s My Stimulus Payment [...]
How America became dependent on foreign oil and why it remains that way:
FOREIGN TAX CREDITS
In 1977 Representative Benjamin Rosenthal of New York produced secret Internal Revenue Service documents going back to 1950. They showed that the tax laws of Saudi Arabia were drafted with the help of Aramco to call the added price of oil not a "royalty" or "cost of doing business," as was proper, but an income tax." The Saudis did this knowing that income tax paid to a foreign country is deductible from the income taxes an oil company pays the United States on all income received in the United States by the parent firm. From Pgs. 61-64 The Media Monopoly by Ben H. Bagdikian 5th edition paperback color emphasis added
"Since that time the major multinational U.S. oil companies have paid hardly a penny of U.S. income tax on their foreign income." page 130 Banks Borrowers, and the Establishment
INTERNATIONAL AGREEMENT
The United States agreed to transfer jobs and technology to developing countries under the Algiers Declaration in March of 1975:
A major portion of the planned or new petrochemical complexes, oil refineries and fertilizer plants be built in the territories of OPEC Member Countries with the co-operation of industrialized nations for export purposes to the developed countries with guaranteed access for such products to the markets of these countries. [Read sections 10 and 11]
REFINERIES IN AMERICA OPERATING AT 85% CAPACITY
Excerpt from Senator Dick Durbin of Illinois floor statementhttp://durbin.senate.gov/showRelease.cfm?releaseId=296989 below:
That is fact. The oil companies say: Well, the problem is we do not have enough refineries. If we had more, then we would have more product and we might have a smaller spread and we would not be. Let me tell you what: Today, the refineries in America are operating at 85 percent of capacity. Do not buy this argument that it is about refineries. They have more capacity. They are holding back so they can keep their product dear and limited and short, and so the consumers will ultimately pay more.
Demand $2 a Gallon Gas
Oil was $127 a barrel recently.
Germany fought WWII with synthetic gas from coal. America, with 1/3rd of Earth’s coal, can be energy independent for an estimated $55 a barrel, including the infrastructure and labor force necessary to operate plants. It is proven technology. Visit http://governor.mt.gov/hottopics/faqsynthetic.asp
Synfuels are cleaner burning than gasoline and they do not increase the cost of food by diverting corn to ethanol.
Furthermore, reducing our trade imbalance keeps jobs in America. Every billion of trade deficit costs 13,000 jobs. $400 billion for oil last year: do the math.
And we stop sending billions to countries that sponsor terrorism.
Harness your anger at the pump. Call you're US Senators and demand they break ground on America's energy independence by encouraging an American synthetic fuel industry in this decade. If you don’t raise your voice the oil companies and politicians will assume you are ready to pay even more.
[...] This is the 4th article in a multi-part series on gas prices in the United States. You can read Part 3 (High Gas Prices - What Can We Do About It?) of the Gas Price Series here. [...]
I don't know much about anything revolving around politics, government, etc… but what I have heard is that we have a lot of oil in alaska, but the fact that we haven't built any refineries in over thirty years is what is hurting us. To hell with the karaboo lets get our fuel and stop wasting time. I heard from a professor that they aren't going to stop raising the price of gas until we do something about it. When is that going to be? When it is 10.00? Yeah. We need to do something now because that 3% raise we get every year for the cost of living increase isn't cutting it. My father is a truck driver and he is paying almost 5.00 per gallon for diesel and he is working 3 weeks out of every month just to get by. When will it end?
We are finally getting fed up to the point it is time to do something. That's why FedUpNetwork was started. Everyday we collect news stories and editorials like this one on our site, and point people to SOLUTION oriented action items like fax campaigns and e-mail campaigns to our elected representatives.
A lot of blame can be placed on both parties; the liberal Democrats who side with the environmentalists who control our energy policy, and the Republicans for rolling over and letting them do it!
Thanks for a great article. We are going to link to it because we need solutions NOW!!!