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Well, Oil is down to under $70 a barrell today after hovering in around the $75 mark for the better part of a week. This would seem to be good news for consumers, but don't be fooled. We aren't the ones that will see the savings at the pump.
Big Oil and the Government are having a great old schoolyard time of it pointing fingers and deflecting blame. The truth is, there are numerous reasons why the Oil economy is at the crisis point it is, not the least of which are the consumers themselves. But we know this already. The last thing we need is to be told by the CEO of Exxon, Rex Tillerson, that we need to "use less of their stuff" (Exxon CEO: Use Less Oil). This just seems smug and heavy-handed. The CEO of a company that paid their previous CEO a $400 MILLION DOLLAR severance package is telling US that it's our fault. It's a slap in the face, but it's true: by using enormous amounts of gasoline and crude energy in populous and economically viable countries we are increasing the demand while lowering the supply. Yet history shows the public won't decrease consumption until the situation is at a crisis point. Some say we won't wake up until prices approach $4 a gallon (Gas May Hit $4 a Gallon). Yes, we as consumers need to look in the mirror and see what we can do to decrease the energy crisis, but we also need to point the finger where it belongs.
For example, buried somewhere in the recent 551-page US government energy bill designed to repair the energy crisis were new regulations for the refining of gasoline and which additives are used. This move basically ensured that the move toward corn-based Ethanol as a replacement for the petroleum-based MTBE came just in time for the peak summer driving season, causing supplies to dip and increasing problems for the refining business at a time it can ill afford them (Blame Washington for Current Energy Crisis). Bush and his cronies are now, because they have no choice, heavily pushing the refining and distribution of Ethanol, a much cheaper and more environmentally friendly fuel source, conveniently in time for mid-term elections. Once again, Bush has caused a crisis that he will ultimately turn around as a vehicle to show how 'effective' a job he is doing leading the country, implementing contingency plans to combat the energy problems he himself has helped perpetuate. This also comes in a package with Bush's grandiose plans to decrease tax breaks, increase operating costs and investigate any misappropriation involving Big Oil. Big Oil, meanwhile, points to the energy bill and the fact that the government has shot themselves in the foot, and laughs in the face of government accusations of their heavy-handing and monopolizing the world's most 'precious' resource. All the while, the Iranians sit back refining Uranium and causing sweaty palms throughout the civilised world. As another major producer of petrol, the tension between the US and Iran is also causing problems with gas prices, with Iran threatening to attack Israel if any US misconduct of ANY kind is deemed by the Iranians to be too great. This uncertain and tense situation drives up prices through geopolitical concern and supply issues, and with the two countries at odds, leaves the US with yet another source of oil that would be only too happy to cut them off.
At this time, there are too many factors surrounding oil, refining, and global economy to determine exactly what can be done to staunch this worldwide crisis. Certainly we as consumers can do our part by driving more efficiently, using less gasoline at home and outside of the home, and finding other sources of energy if need be. But we as the public are sick and tired of the big whigs creating the problems and then asking us to help fix them. The war in Iraq. National Security. Privacy laws. Now gasoline prices. It wasn't us that caused Exxon to give Lee Raymond a $400 million dollar severance, or the US and Iran to stop playing nice, or the governments nice-but-ill-conceived idea of switching to Ethanol at a time when petrol is more cost-effective, or decided that supply and demand take on different rules when applied to oil. No, we the consumers didn't make the decisions that have led to this crisis. But it is us that are paying for it, and we will continue to do so at an incresing premium until Big Oil, the Government, AND the consumers all work together toward a common goal that has nothing to do with profit margin or tax breaks. Oh yeah, THAT'LL happen. So until money is less important than humanity, I expect us all to keep takin it up the gas.
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Sir Smittius
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