Thanks gleeaikin.
This is a complex problem. Of course it is political, but it also may scare speculators out of the oil futures market somewhat which is part of what is causing the price rise in gasoline. Several decades ago, end users comprised 70% of the futures market in oil. Now speculators/investors comprise 70% of that market. Most of the oil used on the east and gulf coasts is Brent Crude which is $10 to $20 per barrel more than West Texas Intermediate. Cushing, OK storage tanks are stuffed, and Obama has finally approved the portion of the XL pipeline between Cushing and the gulf refineries.
Another interesting fact is that we are apparently now EXPORTING about 2% of our oil, and if the entire XL pipeline is built will export even more. Should we regulate the Oil Companies to not export oil and refine more and lower our gas prices? If we are exporting oil, then added drilling seems irrelevant. Chinese and Indian demand is driving the market and speculator enthusiasm. The Oil Companies will all play these factors to their best advantage. I also read that the Oil Companies have shut down around 19% of refinery capacity for periodic maintainance. If the Oil Companies start refining more oil and can get the cheaper oil from Cushing, this should help more than just scaring the speculators. Then again the oil companies may keep production low to keep prices high and/or to help Republicans (politics goes both ways). In other words when the elephants fight we mice should head for the trees.
Cameron is a Conservative on an austerity kick with taxes that are pushing up the price of gas in Britain. I am not sure how this makes him a socialist dupe. Please explain.
