Gas,creeping towards $4.00…..

Posted: 06/03/2008 in Uncategorized
Tags: , , , ,

Once again the price of oil reached a new peak. At over $103.00 a barrel, the pump price for unleaded fuel rose to new highs once again. And as usual, the same claims and cries of foul play were made against the oil companies. Manipulating the price the oil companies were charged with making obscene profits by taking advantage of the American public. It seems not much attention has been paid to the old law of supply and demand.

Here in Maine we are not immune to fluctuations of the market and being a predominately rural society, the cost of gas hits the wallet pretty hard. The urban areas such as Greater Portland, Augusta and Bangor all have some bus service, and taxi service as well, but the transportation choices for the rest of the state are limited to whatever is sitting in the driveway. Mass transit is not an option we can easily put on the table.

So we are stuck with dealing with the increasing cost of fuel. But why is the cost still increasing? The supply has risen, the heating season is coming to an end, so the price should moderate, right? Well, yes and no. You see, there is more to this picture that meets the eye, and the unseen greatly complicates the issue.

One of those issues is the fact that a new player has entered the global market of petroleum. About a month ago Iran opened a new trading center to sell oil futures and contracts more favorable to the Mid-eastern oil producing companies. While some of the governments are still somewhat friendly to the US, a growing number of industries are gradually changing the tune. More greed on everyones part is currently manipulating the markets all over the world.

Another issue that is affecting the price of oil is the projected future costs being driven by the supporters of the farce we call “carbon trading” and other global warming schemes. A recent article relates that it is expected that the carbon trading market in the US will be costing the consumer in excess of three trillion dollars every year by 2020. Industries that rely on oil need to recoup losses before that happens, or widespread failures will be more than likely.

There seems to exist here in Maine a problem with the concept of energy conservation driven in large part by the hysteria that the earth is about to be destroyed by this global warming. In part the result of this is the gas price problem. Instead of cruising around in a Ford Escalade or a Dodge Charger, why aren’t more subcompact cars sold here in Maine? Conservation is not about putting your coffee in a stainless steel travel cup and bragging about how you saved the environment from destruction by not using a Styrofoam cup. Conservation is a mindset that urges you to consume less, and live on what you need.


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