The Oil and Gas Crisis
There are several reasons for the rising price of gasoline:
- An increased demand on the supply of crude oil from the global economy.
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The government requirement to switch from additives with MBTE (which causes cancer) to ethanol and the increased demand this has put on the ethanol production by the refineries.
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The damage to the Gulf refineries from the hurricanes has limited supply. Gas production is down 9% compared to 2005. Again, the Federal government bears a lot of responsibility here in not having the area ready and doing absolutely nothing about global warming, which appears to be the source of the increase in the number and power of the catastrophic hurricanes.
- The extensive use of oil in the two wars in which the government is bidding against the consumer for limited crude oil production.
While all of these are important, the sudden increase in the price of gas is more likely from the ethanol shortage. That should have been predicted by the oil companies and the ethanol production started earlier and more aggressively. Why should the consumer pay for their misjudgment, particularly when they are making record profits from their mismanagement?
Both the President and Congress are full of talk about it, but that’s all it’s been. Why the inaction? Who is paying who for this corruption?
We can (and should) vote those jokers out, but one fact is true. There will be less oil tomorrow and it will be more expensive. At the local, state, and federal levels we have to acknowledge that and change to more appropriative life styles.