Home Store In Memoriam Deborah Newsletter Forum Topics Blogfeed Blogroll Facebook MySpace Contact Us About

Oil and Politics

Reported by Eleanor - August 23, 2004 -

Shep Smith on Studio B (Aug. 23, 3:00 p.m.) covered a story about the price of gas. The story goes that gas will rise to about $3 a gallon by next summer, with the reassurance that $3 is not so bad, since Europe pays $5 a gallon now, much of it because of taxes.

Americans are not "conserving," and oil is "flirting" with $50 a barrel. This high price is expected to "trickle down to the pump by Labor Day." Putin promised to increase exports from Russia, but the market will remain tight. If there is any threat to the supply, it will go to $50-60 a barrel. If it goes above $50, that means a recession.

Comment: So, now we have nothing to fear except terrorists at our door and sky high gas prices. Bush announced at his press conference today that the price of gas is due to the fact that his energy bill has been sitting in Congress for two years.

Want to speculate on the reasons for this political story? Could it simply be preparation for the inevitable rise in gas prices to match the increase in the price of crude, or is there more? To pass the energy bill? To put Anwar back in the game? To justify the war in Iraq by putting oil on the table for the first time? Will a public that is buying scarce, expensive gasoline be more willing to accept a war for oil? To start pulling oil from the SPR to bring the price down before the election, and make people feel good that it's back to $2 by election day? To minimize the blow to Cheney when his energy meeting maps of Iraqi oil fields from 2001 are exposed? To hasten the "privatization" of Iraqi oil? To bring speculators into the oil market to buy oil stocks, driving up the price to make a killing? Who knows? The list is endless, but I doubt if alternative energy is any higher on our oily president's list. Personally, I'm glad I don't have to drive much anymore.