I am sure you are all wondering what is going on out there in gas land, or maybe your just assuming that the oil companies are just taking advantage of a bunch of sitting ducks. Well the simple answer is yes, they are taking advantage of us again.
There is no reason for what is going on out there; the war in the Middle East has been with us for years and has yet to cause a real interruption, supply is holding steady (actually up), yes there has been a lot of tornados lately but none have greatly affected our supply or refining. So what’s up. Again I have to say, as I have always said, “follow the money”.
The majors have been posting record profits again! Occasionally the locals have been making a little extra also, but they have also been eating a lot of raises other times. For months the so called “experts” claimed that gas would hit $5 to $6 bucks a gallon this summer, then all the sudden a few weeks ago the same experts were predicting $2.50 per gallon for the summer, but now we again have seen the prices increase to more than $4 bucks per gallon.
Here’s the scoop and the proof of what is happening; sure there are lots of excuses and reasons they could give, but these are the results and what is actually happening.
Today’s crude oil price is $100.44 per barrel, just a few weeks ago the crude price hit $112 per barrel, funny thing is, is that the rack price (the price the local distributors pay) is within pennies of what the rack was when the barrel price was $12 higher. Also, just a couple years ago, Pre-Obama, Crude oil went to $150 per barrel, at that time with the barrel price up by $50 per barrel, the rack price was within pennies of what it is now! Just in case you are not following what I am saying; the majors are posting record profits for two simple reasons:
1. The price per barrel is artificially high!
2. The majors are receiving the same price for their gas with the barrel price at $100.44 per barrel as they did just a couple years ago when the price per barrel was $150!
Watch the news, there have been little to no interruptions in supply or in refining, the so called “experts” on Fox, Hannity, Rush, and O’Brien are just passing on whatever propaganda the majors are feeding them! This is the conditioning process, they are conditioning us to accept higher prices. Just the other day I bought fuel at Sam’s Club. I was standing there filling my tank with the “cheap stuff and I caught myself thinking, “Wow only $3.84 per gallon”! This is wrong! We have to keep our heads in the game!
Some of you probably wonder why we had that last dip in prices. But then you just move on without regards to history. You have to think back! What just happened a couple weeks ago? President Obama stated in a news conference that he was considering allowing off shore drilling and drilling in Alaska again! Then all the sudden, nothing more has been said on the subject. Now think back to Pre-Obama again, to the end of the Bush years when the barrel hit $150 per gallon and gas prices were above $4. Bush also said he would open up sensitive areas to drilling, and within days, gas fell by over fifty cents per gallon and within three months the price per barrel dropped by over half.
Those whom do not study history are doomed to repeat it, or, evil can only prevail when good men do nothing, (or words to that affect).
Ya gotta stay in the game!
Thanks for reading!
The Gas Man
Stephen H. Sutherland
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