GETTING GASSED
Three weeks ago, at a time when Katrina, Rita, and the Bush administration were thrashing about with impunity, I paid $3.09 for a gallon of unleaded "premium" gas. Today, with Wilma fulminating on the east coast, I filled-up for "only" $2.79 a gallon. I'm no mathematician, but I believe the difference is thirty cents a gallon. Of course, just a year ago, the price for the same gallon of liquid gold was a mere $2.09.
The oil industry, essentially unregulated by anything more than the vagaries of corporate greed, knows its onions. You don't generate thirty-five billion dollars of quarterly profits if you can't do simple arithmetic. And the guys at Chevron/Texaco, Shell, B P, Arco, et al, are masters of mathematic manipulation. They know, for instance, that the psychology of the American consumer is such that a thirty cent drop in the price of their product at the pump brings smiles to the beleagured owners of SUVs, sedans, pick-ups, and gas guzzlers in general. And they know, also, that most of us have short memories; that the fact that today's price is still sixty cents a gallon more than a year ago is less resonant than the prospect of paying less today than we did a week ago.
But the point, of course, is that while they are doing it cleverly (even blaming the raging winds of a handful of hurricanes), they are continuing to raise prices. And when we complain too much they simply remind us that it could be worse; we could be living in England and paying six dollars a gallon. Worse, we could be experiencing shortages at the pump. Never mind the fact that Mexican and Russian oil reserves have been barely touched (which they tell us is because the quality of the crude is too crude); we should feel most fortunate that fuel is available, that it is "reasonable" compared to other places, and we should just shut our mouths, pay the price, and "enjoy the ride".
So, while we rejoice at prices lower than they were a month ago, we are not expected to wonder what they might be a year from now. And while we savor the moment (forgetting about the recent past), the oil industry aims for forty billion in quarterly profits. Like I said, these guys know their onions. And we are getting gassed...........
Garrett500
10/25/2005
The oil industry, essentially unregulated by anything more than the vagaries of corporate greed, knows its onions. You don't generate thirty-five billion dollars of quarterly profits if you can't do simple arithmetic. And the guys at Chevron/Texaco, Shell, B P, Arco, et al, are masters of mathematic manipulation. They know, for instance, that the psychology of the American consumer is such that a thirty cent drop in the price of their product at the pump brings smiles to the beleagured owners of SUVs, sedans, pick-ups, and gas guzzlers in general. And they know, also, that most of us have short memories; that the fact that today's price is still sixty cents a gallon more than a year ago is less resonant than the prospect of paying less today than we did a week ago.
But the point, of course, is that while they are doing it cleverly (even blaming the raging winds of a handful of hurricanes), they are continuing to raise prices. And when we complain too much they simply remind us that it could be worse; we could be living in England and paying six dollars a gallon. Worse, we could be experiencing shortages at the pump. Never mind the fact that Mexican and Russian oil reserves have been barely touched (which they tell us is because the quality of the crude is too crude); we should feel most fortunate that fuel is available, that it is "reasonable" compared to other places, and we should just shut our mouths, pay the price, and "enjoy the ride".
So, while we rejoice at prices lower than they were a month ago, we are not expected to wonder what they might be a year from now. And while we savor the moment (forgetting about the recent past), the oil industry aims for forty billion in quarterly profits. Like I said, these guys know their onions. And we are getting gassed...........
Garrett500
10/25/2005
posted by Garrett W at 8:22 AM
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