Gas prices are high exactly why?

There have been all kinds of explanations about why our gas prices continue to rise. A number of bloggers here have reminded us that oil is a world commodity and the world market sets the prices…often times unfairly and at the whim of speculators. And of course the Keystone XL pipeline would solve all of our gas price woes if we’d only build it…well the fact is gasoline and aviation fuel have been the biggest export for the US for sometime. But even as gas prices have risen, the US exported more petroleum products than we imported in 2011. Maybe the suggestion that the US join OPEC isn’t so far fetched after all.

But don’t take my word for it, just ask the US Energy Information Administration!

The United States in 2011 exported more petroleum products, on an annual basis, than it imported for the first time since 1949, but American refiners still imported large, although declining, amounts of crude oil, according to full-year trade data from EIA’s Petroleum Supply Monthly February report. The increase in foreign purchases of distillate fuel contributed the most to the United States becoming a net exporter of petroleum products.

So please remember, when you fill up your tank next time that you are competing with the whole world for your gasoline! And wonder why the US House refused to include an amendment on the current Keystone XL Pipeline bill that would keep the resulting petroleum products IN the USA.


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8 thoughts on “Gas prices are high exactly why?

  1. Do you think that the high price of gasoline may have something to do with the oil companies closing gas refineries on the east coast–putting 2200 workers out of a job–in a deliberate effort to limit gas supply and increase the price of gas??????????

  2. Amid all the “explanations” for what is going on with gasoline prices, the following has been missing from the discussion. This needs to be said:

    Gas prices are high exactly because there is no longer any competition within the industry. Forty years ago there were myriad oil companies, each with its own brand and stations with proud company logo, all competing for the consumer dollar. Remember “gas wars?” Since then, the industry players have consolidated to fewer than six major producers who supply all the different “brands” that are sold at today’s “gas stations.”

    Gas prices are high and getting higher exactly because of gouging by the monopoly that is today’s oil industry. Yup, price fixing. Because they can. And nothing will change until the Justice Department does something to break up this monopoly and restore some competition to the arena. This, of course, will not happen as long as big business continues to control our government.

    Forget supply and demand. Those forces are no longer in play. Forget speculation which is a miniscule force at most. Smoke and mirrors, the lot of it. Free market my ass.

    1. Thanks for that explanation. As close to certain as one can get. WaPo has a short popularity poll and Oilbummer is a toss up with either Republican candidate. They are claiming his dropping popularity is due to rising gasoline prices, but that is not the entire reason by a long shot. Try prosecuting bank mortgage fraud, ending the wars, the lack of living wage or any other jobs nation-wide, and I’ll leave it there.

      A popularity rating that low is going to have the DNC wishing they had not dissed the progressive left, who right now, don’t really care what happens to sorryO this November.

  3. What I have to laugh about regarding this post, which was very well done, but back when George Bush was in office the high prices were all because he was buddies with the Saudis and the left yelled and screamed at the top of their lungs, but now that their man is in office they are able to provide all kind of reasons why he is not responsible for the high prices. This is politics in America people, it is shallow and partisan. America is never going to be the country it once was, world leader, for the simple reason that left and right can no longer find a common cause to work together. All you can do is sit back and watch this country gets swallowed up by the outside world.

  4. I’d beg to differ a bit with your closing assessment, John. It is precisely because the left and right are working harmoniously together, ($millionaire legislators scratching each other’s backs) refusing to take a look at the monopolistic structure of the multinational half a dozen companies that control all the world’s oil supply and distribution that is the problem. Millions of gallons of crude in the Gulf of Mexico, suddenly just disappeared? Just take the oil company word for it? Tens of $billions in profits and no income taxes paid?

    If the “you,” in your last sentence is directed to the “left,” political persuasion, I would suggest a little more research and broadening of you knowledge base before remarking. I would guess that you have not missed that multinational companies with no allegiance to any particular nation control both parties (on the national level) in this failed democratic republic. Might want to research Citizens United.

    The left/right squabbles on Faux just keep on churning as the nation’s resources are siphoned off at almost no charge from the originating country and sold to the highest world-wide bidder, amidst the electoral circus and the false concern about you or me or anything but their power and control. The media is well payed for providing the diversion.

  5. Charles Kuehn makes the essential point that Oil is a monopoly…a world monopoly…and we are under its thumb for war, insurrection, pollution and corporate led political control. Think you can break this monopoly? Then consider Coca-Cola, General Motors and Wall Street. They created a political lockhold on their markets and used that to gain entry into world markets. With oil being a limited resource, it’s easier to control the world oil monopoly and control the world. Everytime you fill up your gas you aid in this monopoly. This nation has to get off oil. Forget trying to lower the price.

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