Tuesday, February 21, 2012

The Real Reason For High Gas Prices That CNN, Fox and MSNBC Won't Tell You

The main stream media in this country are pounding us with stories about how high gas prices are and how high they might get.  They then say Obama may have trouble in the election with gas prices this high.  They also bring up his opposition to the Keystone XL Pipe Line project that would bring dirty tar sands crude from Canada to refineries in Texas. 

Forests being carved out for tar sand oil. Photo by ucobserver.org

What the main stream media refuses to say is why?  Why would the president be against an oil pipeline if we need more oil?  Why are gas prices going up even though Obama has allowed for more and more drilling, even in the Arctic National Wildlife Refuge. The media will say it’s because of the tension in the Middle East.  Since I have been alive, there have been tensions in the Middle East so lets put that reason aside.  They used to tell us that demand was too high and domestic refining capacity was too low and that was what was driving the cost of gas and diesel fuel here in the US.  The fact is, today domestic demand is at a 15 year low for gas and diesel and due to expanded exploration during the Bush and Obama administrations the country has too much oil and too much refined fuels.  Last year for the first time in 60 years the US became a net exporter of refined fuels, gasoline, diesel and kerosene or jet fuel.  Refineries are closing due to lack of demand locally.  Excess fuel is being sold on the world market and sent overseas.  This is driving up domestic gas and diesel fuel prices.  Another factor is Wall St. speculation.  A law that required speculators of fuel to take delivery of said fuel was changed so that those not in the business unlike airlines, railroads or fleet managers could bet on the price but not be responsible for actually holding the product they bought.  This has caused the banksters to drive up the price of fuel world wide. 

Back to that Keystone XL Pipeline to Texas.  That oil is not for the US to consume it is for a refinery in Texas to refine and then sell overseas, mostly to countries in Europe. Drill baby drill said Sarah Palin and other Republicans telling us that if we only tapped the oil we have here at home, the price of gas would go down.  They were either seriously misinformed, dumb as rocks or intentionally lying to the US public. Anyone that looks into it will see that as a commodity, oil and gas are sold on the world market and that market sets the price.  What we have now is a domestic supply being shipped offshore to some of the same countries that many of our jobs were sent to. This is of little benefit to US consumers but makes the oil companies lots of money.  It also helps out the rest of the world that we are conserving fuel at home so that we can share it with the rest of the world. 

There is no domestic shortage of oil, gas or diesel.  There is no shortage of refinery capacity and there is no shortage of manipulation by the main stream media to try to manipulate the US public into thinking that we need to drill in sensitive coastal waters and national parks to avoid $5-dollar a gallon gas.  If we stopped the exports, prices would go down but we can't because we are not a democracy, we are a republic that favors international free trade over our own financial and physical well being.


  1. Well said Tom!

    That's the situation in a nutshell.
    As usual we suffer at the pump while the fat cats play with us like mice.

  2. Just so you know: the second largest oil refinery in the Western Hemisphere, owned by Hess Oil Company, recently announced its closure in St. Croix, U.S. Virgin Islands. It's how you keep the prices up - limit production. That and speculation. It's got nothing to do with "drill baby drill", capacity, production, stockpiles, or anything along those lines. It has to do with maximizing corporate profits. Hess's plan is to turn the massive refinery into a storage and dropoff facility. Hess also has the right, curiously, (an "option") to construct a massive NEW refinery on the Island of St. Lucia, which is very closely aligned with China from an economic perspective.


Nuclear Waste Water Fukusima From A Drone

G.W. Bush On Explosives At WTC

US Senator Joe Liberman, WTC 7 Did Not Occur