Hurting at the gas pump? Gee, this is the direct result of Bush's deregulation.

[icarus]

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.

• 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?

Comments

[webbapettigrew.livejournal.com]

Personally, the "Europeans are paying 10$ for gas a gallon" argument doesn't wash with me. Yes, that is terrible and I heard 75% of that is tax alone, but here's my issue: take England. England is a small nation. I'm not sure how large across and vertical it is, but my guess is that a gallon of gas lasts a lot longer for your average Brit because they're not traveling as far to work, and there's also the wonderful advantage of subways and those really cute buses with the two decks.

Where I live, things are rural. I am lucky. The job I will have once Emily is born is two blocks from my home, but my father has to drive 40 minutes one way to his job. It's just because the area is so rural and the towns are so spread out! So for dad, one gallon of gas almost gets him to work. See what I mean? If dad commuted one mile, ten dollar gas wouldn't hurt so much because it would last longer in his tank.

I also think we pay twice as much per gallon because many people don't seem to care about the price, as long as they can keep their precious SUVs. We as a whole are a very spoiled nation and we as a whole, but not necessarily everyone, feel we're entitled to so much that when we don't get it, we pitch a fit.

For those people who do care, we're the lower middle class, the ones who pay the vast majority of taxes overall and the ones who make sure the CEO's boots are nice and polished. We can't afford to run for any office and so our voices and opinions mean about as much as a bowl of festering dog snot.

Point me to a candidate who is vehemently opposed to big oil, and that's who will be getting my vote in November.

[frogspace.livejournal.com]

my father has to drive 40 minutes one way to his job.

Driving 40 minutes one way to your job isn't uncommon in Europe. Neither is driving an hour or more.

[kennahijja.livejournal.com]

Ah, but it depends on where in the UK you are - in large cities, you often have a decent public transport system, or, *gasp* even trams! But that can be pretty damn expensive too. But in rural areas... Horrid at best in many areas. Come to think about it, while Germany is slightly better provided for, if you're off the beaten track, getting anywhere without a car is still hell.

[gwendolen.livejournal.com]

That argument only works for the big cities and even there public transport isn't always an option as it really depends on where you live and where you have to go.

I'm living in rural Germany and I once had a job where I had no other option than to use the car and had a one-way commute of about 30 minutes (about 30 kms). Other co-workers drove 40 or even 60 minutes. Car-pools also weren't an option.

And there are many things I need the car for simply because walking, taking the bicycle or using public transport isn't possible, i.e. grocery shopping or going out (last train leaves at midnight and would leave me stranded at the train-station as there are no more busses that late at night).

[icarusancalion.livejournal.com]

75% of your high gas prices go to taxes.

Ours, well... as far as I can tell, they're funding vacations in the Bahamas for oil executives. It's all going straight to their pockets. I understand that the salary for CEOs in the US are obscenely high compared to Europe.

That was a question our senators asked. After grilling the oil execs about the record profits, they asked how much they were making personally.