Sunday, July 27, 2008

RAPED AT THE PUMP


As promised, i will attempt to shed some light on a problem that effects many of us on a monthly, weekly, and even daily basis.
OIL PRICIES!!!!( insert evil laughter and lightining)
When seen through the mostly ignorance fueled view point of our two presidential hopefuls. we have to either blame those damn liberal, bleeding heart environmentalists( so says mccain), or the evil heartiest Saudi's, and Bush's ( so say obama). looks to me like we have hit a snag. Someone has to be wrong or just straight lying. But if you believe in things like gravity, and the sky being blue. You would have realized a very long time ago politicians say things they believe people want to hear not necessarily what's true........ The best way to hide the truth is by getting people to think the it is way to much to comprehend or understand... In all honesty it doesn't take a rocket scientist to know when someone is screwing you over, you just feel it....soo lets try to look at this issue in a less bull sh##ty way shall we....

What determines the cost of fuel?
It sounds crazy that 68% of all oil in the world is controlled by ten company's YES i said it TEN. So there you go if Oil comes from these guys why not blame them? Not so fast! Just like coffee and pork. Oil is something we like to call a "publicly traded commodity". Sure the oil producers can slightly change the price of oil by being d*** and saying we lost our drills or we gotta take an extended lunch break(not really) but you get what i am trying to say (i hope). "BUT" In all actuality it is really the world markets that determine how much we pay at the pump not prince Abdulla, he really can care less, even if we pay 10 cents a gallon he is still gonna be able to get one of these.

Now lets get an idea of how exactly "world Market" effects our wallets at the pump:
within each market we have a group of people called "Oil Traders". These traders are essintaly investors who speculate(ie guess) the value of oil and make a s**t load of money buy "buying" oil cheap and selling it at a higher price. yes i know supply and demand does play a role in speculating fuel cost, but there is also alot of "what if" involved. acording to
http://fuelfocus.nrcan.gc.ca/fact_sheets/oilmarket_e.cfm

"Buyers and sellers also factor in what they expect will happen to prices in the future. If buyers think that supply might be lower in a few weeks or months and the price could go up, they will want to stockpile some oil now and might even be willing to pay a premium today to protect against a higher price in the future. Similarly, if buyers think that the supply of oil will increase in the future or that the price can be expected to decline soon, they will delay their purchases as long as possible or demand a discount on the price."

The problem with this system (in my opinion) there is way to much "factors" involved ,that can get these guys upping the price. including their own greed.

Now that we have an understanding of what determines fuel cost at a global level, lets see what effects prices at a more local level.
Unfortunately the price increases dont stop at the world markets.. more cost gets tacked on as they enter our beloved country. why? well your senator has to eat too.
the average American pays 62 cents per gallon in state taxes alone......
SO now what!
There is no quick fix . I honestly believe the only way to create change is by focusing our attention on those truly responsible. the thing is if we don't know where to direct that attention we have no hope at all.
looks to me like the issue of rising gas price go far beyond the band aid policies Mccain and Obama try to feed us... thanks for reading
Javi

1 comment:

Anonymous said...

I think that is kind of messed up that a selective of people decide they want to play Ms. Cleo and decide what I pay at the pump. That's some BS. No matter what, people are still going to buy gas because people either have to work or are just to damn lazy to walk any where. So what happens next year? Now that the American dollar is losing it's value are they going to make me pay more? I would love to know who it is that has this job so I can apply.