Big Oil Discovery in Gulf of Mexico

It’s funny, how many small things can burp and cause a rise in oil and gas prices. Disruptions of supplies-real and imagined-is a reason frequently given. Another is turmoil in the Middle East or elsewhere. And it doesn’t even have to be turmoil-the perception is enough. Analysts will blame the latest rise on what they think might happen, as opposed to what really happens. And then there are natural concerns. Hurricanes, strong storms, etc…can have an impact. Supply and demand is often given as a reason for rising prices also. Of course, these are real (if not greatly overblown) issues. And we as the oil consuming public are expected to understand. On the other hand, we are not supposed to question the record oil industry profits. Can they be faulted for being good at extracting profit?

There are others (myself included) who would counter that the oil industry is very much out to enhance its own profits with no regard to the environment, the economy (as long as it keeps buying gas) or the consumer. They epitomize all the is wrong with the corporate side of crony capitalism. That real reasons for price volatility are exacerbated purposefully with the sole gain in mind of amassing profit. So I am not at all surprised to read that the discovery of what is possibly enough oil to boost America’s domestic reserve by 50% is not expected to have any effect at the pump. I don’t expect anything short of mandated price controls coupled with real efforts to diminish demand to have any lasting effect on prices. I am sure there will be a dip before the November elections, but I fully expect it will rise as soon as the economy (and the level of disgust of the Citizenry) will allow it. And 3 or 4 dollars a gallon will become the new threshold.

So what is it that most angers me about the whole story? The outright hypocrisy of the far right ideologues and the oil industry execs. They are telling us the truth, that this discovery will not have a great effect on prices. The bad part is the blatant lie they told us about ANWAR. They tried to sell us on the idea that if the Clinton Administration would have allowed drilling in the environmentally sensitive arctic, that we would be seeing gas prices alot lower. That if we had only pushed those damn Caribou out of the way and drilled, we would be driving our SUVs and Hummers with wild and reckless abandon on cheap gas. See the hypocrisy? Not to mention that we should be doing all we can to protect the arctic, as we will be seeing alot less of it in the future, thanks to global warming. The only thing that will get us out of our oil addiction is to find (quickly) real alternatives, and to plan for a more efficient use of energy in the future.