![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
Hurting at the gas pump? Had a couple people tell you that "Oh, you Americans are just spoiled. They pay $6 a gallon in Amsterdam." And 12 cents a gallon in Venezuela.
Wait, what?
12 cents. In Venezuela.*
See, that's what happens when you're a major oil-producing nation. Unlike Europe, gas tends to be a little cheaper when you don't have to import every drop. (Europe also taxes imported oil.)
But wait, you ask. Isn't the U.S. an oil-producing nation?
Why, yes. We sell oil to everyone but ourselves and we don't make enough for our entire demand, but that's why our gas prices have been relatively low compared to the rest of the world. Until now.
What changed?
Let's sing it folks: Bush de-reg-u-lated in 2000. He tossed the commodities (including oil) ball into the ring of speculators and said, "Have a ball, guys! Gamble away. Don't worry about throwing prices out of whack. We don't need these regulations that have been in place since 1936. Hell, people made tons of money in the 1920s!"
The gambling over future gas prices has hit a fever pitch. Haven't you ever wondered why the news can say, "And gas prices are expected to rise to $X.XX this summer"? They ask the speculators, that's how. On Friday the stock market wailed piteously and dropped 400 points, rocked by the single biggest jump in gas prices in history. A jump driven by--you guessed it--gambling. Speculators.
And while we're at it, let's take a hard look at how oil companies are refusing to build new refineries--which they now own--in order to keep gas prices artificially high.
The good news? Why yes, there is a push to bring back sane regulations. As reported in Businessweek. Of course, Businessweek doesn't mention till later in the article that these are the regulations we had from 1936-2000.
* In Nigeria, gas is 38 cents a gallon. In Egypt, Kuwait, Saudi Arabia, gas falls between 65 cents and 91 cents a gallon. Moscow has prices along the lines of US (former) prices, of $2.10 a gallon. Why does the US pay twice as much per gallon as Russia?
Wait, what?
12 cents. In Venezuela.*
See, that's what happens when you're a major oil-producing nation. Unlike Europe, gas tends to be a little cheaper when you don't have to import every drop. (Europe also taxes imported oil.)
But wait, you ask. Isn't the U.S. an oil-producing nation?
Why, yes. We sell oil to everyone but ourselves and we don't make enough for our entire demand, but that's why our gas prices have been relatively low compared to the rest of the world. Until now.
What changed?
Let's sing it folks: Bush de-reg-u-lated in 2000. He tossed the commodities (including oil) ball into the ring of speculators and said, "Have a ball, guys! Gamble away. Don't worry about throwing prices out of whack. We don't need these regulations that have been in place since 1936. Hell, people made tons of money in the 1920s!"
The gambling over future gas prices has hit a fever pitch. Haven't you ever wondered why the news can say, "And gas prices are expected to rise to $X.XX this summer"? They ask the speculators, that's how. On Friday the stock market wailed piteously and dropped 400 points, rocked by the single biggest jump in gas prices in history. A jump driven by--you guessed it--gambling. Speculators.
- Do you think it's high time to bring back the regulations that were put in place once such irresponsible trading led us to the Great Depression? Hell, yeah.
- Do you think the London-Dubai connection should continue (where the US looks the other way and allows other countries that don't give a shit regulate our markets)? Hell, no.
And while we're at it, let's take a hard look at how oil companies are refusing to build new refineries--which they now own--in order to keep gas prices artificially high.
The good news? Why yes, there is a push to bring back sane regulations. As reported in Businessweek. Of course, Businessweek doesn't mention till later in the article that these are the regulations we had from 1936-2000.
* In Nigeria, gas is 38 cents a gallon. In Egypt, Kuwait, Saudi Arabia, gas falls between 65 cents and 91 cents a gallon. Moscow has prices along the lines of US (former) prices, of $2.10 a gallon. Why does the US pay twice as much per gallon as Russia?
