A buddy of mine back in Brunswick, Georgia said that, immediately following the Hurricane Katrina debacle, his local gas stations were charging $6 a gallon — because they could. I trust this man. And it didn’t make the news, that I’m aware.
The prices later went down. Because they had to.
In a capitalist society, it is in fact literally about supply and demand.
So how about this.
Exxon Mobil Corp. rewrote the corporate record books Thursday (10-27-2005) as the oil company’s third-quarter earnings soared to almost $10 billion and it became the first public company ever with quarterly sales topping $100 billion. Anglo-Dutch competitor Royal Dutch Shell PLC (RDSA) wasn’t far behind, posting a profit of $9 billion for the quarter.
The article continued:
Thursday’s outsized earnings are a result of surging oil and natural gas prices that pushed pump prices to record territory after Hurricane Katrina. They come on the heels of similar eye-popping gains reported this week by BP PLC (BP), ConocoPhillips Inc. and Marathon Oil Corp. (MRO) Chevron Corp. (CVX) reports its earnings on Friday.
Is this simply reaping the profits of a singular situation, or is this price-gouging on an heretofore-unprecedented basis? There have been arguments made for both sides at this point. In Fornicalia, I have seen the price of 87-octane gas dip to $2.62 a gallon this weekend at my local Arco — your basic cheaper cash-only outlet.
How about this:
Chafee Votes to Keep Gas Prices High; Senate Democrats, sensing what they hope will be an opportunity to blame Republicans for the high price of gasoline, voted in unison Wednesday in the Senate Environment and Public Works Committee to help defeat a bill that would have streamlined the building of new refineries.
To continue:
Senate Democrats, sensing what they hope will be an opportunity to blame Republicans for the high price of gasoline, voted in unison Wednesday in the Senate Environment and Public Works Committee to help defeat a bill that would have streamlined the building of new refineries. The eight committee Democrats won over liberal Sen. Lincoln Chafee (R.-R.I.), whose vote against Chairman Jim Inhofe’s Gas PRICE Act (S 1772) means Republicans will have to take other steps if they want to push a refinery bill through the Senate this year.
Further:
Environmentalists opposed Inhofe’s bill for its provisions to expand refinery capacity, streamline refinery permitting and simplify so-called boutique fuel requirements. It also would have provided federal assistance for the construction of refineries on closed military bases, which could have been producing gas in about two years, Inhofe said.
Where do we get the bulk of our imported oil? Are you prepared for a surpise? The top four suppliers are:
- Canada
- Venezuela
- Mexico
- Saudi Arabia
Bet you thought it was the Middle East — wasn’t it?
Ponder this for a time; where should we go next?
Building refineries? Building tanks? Building storage and refining capacity?
We should definitely expand refining capacity before anything else. Never trust any one else to make our fuel. Then work on domestic and friendly oil supply.
At the current price per barrel, we will keep ramping up domestic production. It is cost productive again.
10 29 05
I agree that for a certain time, we need to use our domestic oil supply, and hence it shd be developed and refinery capacities expanded. But I say this with the caveat that over time, new technologies will be developed AND IMPLEMENTED such that our reliance on fossil fuels will be eliminated on a wide scale. Arnie has the idea of the Hydrogen Highway by 2010 (Lofty, but cool) and we shd look forward, but play it safe and do it over a planned period of time…Good post!
BWH: my belief also: firm up our our production, our own capabilities. I’m ALL about energy independence and it grates at my craw that we find ourselves beholden to those holding the oil cup above our heads. YES, build more refineries, place them throughout the United States so that, as we recently saw, we don’t have one event take the bulk of our production capabilities offline. Tap ANWR. Tap shale oil.
AND, Mahndisa, as you advocate, at the same time seek further energy technological breakthroughs to wean ourselves from fossil fuels.
Our greatest strength in this country is our will to surmount challenges and think and act independently. I am convinced the technology exists or will soon exist to allow us to begin the utilization of different and more efficient energy sources.