Andy Barnett’s Culture War Blog

Gas Prices are Rising! People are Mad! Don’t blame big oil, Blame Big Government!

April 29th, 2008 | by Andy Barnett |

So the price at the pump continues to rise and so does your blood pressure. The Mainstream Media would have you believe that it’s all the oil companies fault for raking in big profits! That is a classic distraction from the root cause of our oil price crisis. The problem is government regulation!

Now, I’m no economist, but follow along with my line of thinking and tell me if I’m on to something…

I think we can look at basic supply and demand principles and find the real problem with the price at the pump. We know the demand for gas exists, in fact it’s probably the one constant. I don’t think it’s greater demand that is driving up the price of gas, it seems more likely that it’s supply which continues to decline. So you’ve got to ask yourself why is supply lower? The source of most oil used in the USA is the middle east, and they keep jacking up the prices so it’s more expensive to buy oil. It seems to me that this does two things.

First, existing oil companies get less bang for their buck. These companies work on a budget and they are getting less oil supply for their money. Naturally they have to pass on costs to the consumers to cover the increased cost of doing business. Second, because of the increased cost of doing business it requires more upfront investment money to operate this type of business. This makes it harder if not impossible for smaller oil companies to compete. With less competition oil companies are maximizing their profits. It’s not their fault, it’s all because we have a supply problem.

Why do middle eastern countries keep jacking up the price oil? I don’t know and I don’t care. We could eliminate a lot of headaches if we just quit depending on foreign oil and the various factors that go into their pricing (not to mention we could quit funding terrorist sponsoring nations).

Here’s a novel idea: why don’t we start getting our oil here in America? Why not tap into our own natural resources that exist? Flooding the market with affordable oil supply would benefit everyone.

Government regulations keep us from doing this. The federal government has put regulations in place that prohibit off-shore drilling for oil, drilling for oil in Alaska, and other areas of our homeland rich in natural resources! The oil is there, just waiting to be used. Contrary to popular myth, this oil can be drilled and used in an environmentally responsible way!

The problem is simple: the myth of man-made global warming has been accepted by most Americans thanks to environmental kooks on the left. Not only will these nut jobs not let us use our own natural resources, but they put regulations in place to prohibit more oil refineries which would help open up greater supplies. Other options to increase oil supplies are also thwarted by this same group (developing more coal or nuclear power plants aimed at cutting dependence on oil and increasing supplies that could be used for gasoline).

Wind farms and solar power are wonderful creative ideas, but they don’t produce immediate results. We know that drilling for oil in America, building more refineries, building more coal powered plants, and building more nuclear power plants would all have a proven impact on lessening our dependence on oil overall thus increasing oil supply used for gasoline and creating lower prices at the pump.

So, the next time you see someone complain about the price of gas at the pump, ask them if they believe in man made global warming. If they say yes, I don’t think it would be out of line to point a finger in their face and say, “this is all your fault!”

3 Responses to “Gas Prices are Rising! People are Mad! Don’t blame big oil, Blame Big Government!”

  1. By Jay on Apr 29, 2008

    I agree with the thrust of your post, but the fact is, most of our oil imports actually come from North America.

    http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

  2. By Chris Sumpter on Apr 29, 2008

    Your points do have validity, but it is also true that oil companies are posting bigger profits than any US company of any type has ever poseted before. So, I think it’s reasonable to conclude that they are being some what exploitative in their taking advantage of limited supplies.

    Drilling in protected wilderness areas is one possible solution; reducing demand is another. We are simply spoiled by the amount of oil comsumption that we are used to as Americans.

  3. By Andy Barnett on Apr 30, 2008

    Jay - Interesting that Canada supplies the most oil! Good research. Saudi Arabia still supplies a substantial amount, but the point of my article is that we need to flood the market with our own natural resources. Nothing against our friends in Canada or Mexico but I’d still rather be energy independent. This would increase competition which I believe is beneficial to all Americans. I think we’d see a real difference at the pump.

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