Why The Petroleum Industry Continues To Lie To The Public

I didn’t do it, nobody saw me do it, there’s no way you can prove anything! Bart Simpson 

Spokesmen like Sykuta want to act like they are the experts and they know it all. So when they shovel a bunch of BS the public is supposed to go, “OH ok”.  Accepting the BS as if it were the truth. Notice he is not talking about oil prices, he is talking about gasoline prices. The real shocker in this piece is how quickly tosses oil off.

** The biggest factor in gasoline prices, almost 58 percent, is the cost of crude oil. Crude oil prices are skyrocketing, but only recently at inflation adjusted highs. There are several reasons:

—  Domestic demand, especially for diesel.
—  Red-hot worldwide demand, especially in China and India.
—  The historically low value of the U.S. dollar.
—  Civil/political strife in major oil-producing countries such as Nigeria, Venezuela and Iran.

These factors have tightened worldwide supply significantly. Continued economic growth, which is directly tied to increased energy use, exerts further upward pressure on crude oil prices. Like it or not, local prices are directly tied to the world market and can’t be controlled by U.S. companies.  Exxon controls a miniscule .62 percent of worldwide reserves, and BP accounts for only 3.42 percent of oil production.


So the first thing to say is he is going to make the falacious arguement that oil is only a small part of the gasoline prices, but then sites gasoline usage as a part of the problem…eg. increased domestic diesel usage what isn’t diesel gasoline? GOD

His second arguement is that The Petroleum Companies don’t own the oil we just buy it. Yah and you pay WHATEVER the sellers ask, no matter what and then pass the costs to us. What would happen to the oil market if one time just one time you guys said, “Thats too much. Sell it to someone else.” Instead they are clamboring for more 130$$ oil to be pumped into the ground in a salt dome in Louisiana (better know as the Strategic Reserve).

However his arguement essentially is if wasn’t for all the things that happen after we get a barrel of oil then prices would be cheaper. If you buy his original premise that oil is only 58% of the price of gas…then gas should go for under 2$$ a gallon. Think about how silly that is. Let’s see, when oil was 60$$ a barrel gas prices were 2$$ a gallon and now that oil is at 128$$ a barrel it’s 4$$. But the huge increase in oil prices which is largely due to speculaters in the Futures Market (or if you believe Peak Oil – because we are running out of oil) has nothing to do with it. Get real.

Ok, so what about increase in demand for domestic diesel. Everyone know that increases in price decreases consumption. This is true of truck drivers as well. They are slowing down and taking more direct routes. So we have to mark this one as UNTRUE.

 The “red hot” India and China Markets? Look, when a 1/4 of the world’s oil is tied up in the futures market everyone is fighting over oil but it has no direct relationship to India’s or China’s increase in imports. Even the Saudia’s who are known liars have said repeatedly that there is enough oil on the market. That oil isn’t making being made into gasoline. Add to that the fact that the refineries are reportedly running at 85% capacity. So we mark this one as UNTRUE. 

Next up the Weakened Dollar. Well well well, and who is responsible for that? Dare we say the Geniuses on Wall Street many of whom are oil company Executives. So much so that, again the Saudies and Dubai had to step in and supply billions of dollars in liquidity. And it still wasn’t enough. Top that off with the debt from a war started by an Oilman over Oil and  what exactly do they expect? Mark this one as UNTRUE.

Finally there is the world famous “unstable producers”. Whose fault is that? Oil companies cut deals with Dictators to get oil and they are suprised when “instabilities” occur. NO WAY.

More later:

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