As I suspected, and I'm sure that many others did too, the oil companies cashed in big time after Katrina, especially those whose refinery and distribution networks were unaffected.
When the average price of a gallon of regular gasoline peaked at $3.07 recently, it was partly because the nation's refineries were getting an estimated 99 cents on each gallon sold. That was more than three times the amount they earned a year ago when regular unleaded was selling for $1.87.
The companies that pump oil from the ground swept in an additional 47 cents on each gallon, a 46 percent jump over the same period.
If motorists are the big losers in the spectacular run-up in gas prices, the companies that produce the oil and turn it into gasoline are the clear winners. By contrast, the truckers who transport gasoline, the companies that operate pipelines and the gas station owners have profited far less.
The market forces that dictate the pricing are going to respond to one thing: lowered demand, which means that fuel-efficiency standards are going to have to increase dramatically in pretty short order, something the 1600 Crew has been unwilling to look at doing in any meaningful way.
Because as the man who has his hand up Beloved Leaders rectum says, "Conservation...what a virtue, now back my armored SUV up here and get me out of this damn hospital".
posted by Jo Fish on 09.25.05 at 05:21 PM
Comments:
There is a mid-term election coming up next year, as well as Bush's continued thrust for Imperial adventure by conquering Iran. And he still isn't finished trying to steal all the Social Security money, as well as gutting all the environmental protection laws (Death to the caribou!) All of this requires a lot of cash to fund the "independant" think tanks and limousine loads of "concerned citizens" who want to "make America a safer and stronger world leader."
That cash has to come from somewhere.
posted by: Lurch on 09.25.05 at 09:18 PM [permalink]
