Pahrump Valley Times Nye County's Largest Circulation Newspaper
CURRENT WEATHER: Clear, 97°



Elections 2008
2008 Election Information

News
News
Opinion
Sports
Obituaries
Archives

Classifieds
All Classifieds
Employment
Real Estate
Autos
Merchandise

Our Newspaper
Archive
Columnists
Contact Us
How To Advertise
Subscriptions


 
Top Story

Mar. 07, 2008

Investigate oil prices and s'plain it to me, Lucy


MARIE WUJEK




Advertisement

My column this week is a why and how come column. Why are we not demanding an explanation from our government officials on the record profits posted by oil companies when our economy is in such despair? Remember, to be a record, you must beat a previous record.

Oil, the black gold, Texas tea, rules everything we do. From gas for our vehicles, to energy to heat our homes and transportation costs to get food and other products to retail locations, you name it, the cost of oil plays a part in what you pay for it.

Are we so caught up in the daily grind that we don't have time to write members of Congress and our elected officials to ask for a full investigation into this fleecing of America? Or do we leave it up to the squeaky wheels and taxpayer watchdogs ?

In my opinion, there is one of two scenarios, or a combination of both, going on here, and I want answers.

Is this a simple case of price gouging/fixing or is it far deeper than that? Remember about 30 years ago the oil industry was in the tank, no pun intended. Seems it started with the great oil embargo of the '70s. Did our government help the oil companies by offering tax cuts, rebates, incentives, write-offs, kickbacks, etc. Are these measures still in effect, resulting in the continual record profits posted by this industry? Or were they given carte blanche to do as they please? Whatever the reason, the American people deserve an explanation and obviously fuel prices should be lowered.

I would also like to know why our illustrious leaders haven't already questioned this. I remember a while back Sen. Reid asking for an investigation of oil companies for price gouging/fixing. However, I don't recall the results, or if an investigation was ordered or completed.

Why would any elected official turn a blind eye to an industry posting record profits when this country is in such dire economic straights? Home foreclosures at an all time high, an increase in personal and business bankruptcies and job losses are affecting more Americans every day.

Back to one of two scenarios or a combination of both. Either this industry donates to their political campaign, or they were economically able to invest in the oil industry and are enjoying an increase in their personal wealth. I suspect both come down to "not biting the hand that feeds you."

We the people are showing up in record numbers to the presidential primaries and caucuses. Why, aren't we the people writing our representatives in record numbers, demanding accountability, resolving and rectifying the obvious wrongs that are crippling this nation by the oil companies and their record profits?

Oil and fuel prices attribute heavily to this country's economic situation. In my opinion they are greatly responsible for the recession that we are experiencing.

If enough people demand accountability, it will have to be addressed. You can write your senators and representatives and demand an explanation to this ever- increasing problem. What is more important, being a mover and a shaker, or pulling weeds in the yard for half an hour?

Will last week's explosion at a Texas refinery be the next excuse for higher gas prices? I like the one, "We had a milder winter than expected so we needed to raise fuel costs to cover the extra oil we purchased for the winter heating season." Sorry, this makes no sense to me. The law of supply and demand, if you have more than you need, you sell it at a lower price or keep it in reserve.

Here's another "s'plain it to me Lucy" question. Why does diesel fuel cost more than unleaded gas when my understanding is that it costs less to produce? I have also heard diesel fuel is a by-product of gasoline, you know, what is left over after the oil is refined to make gasoline. For years everyday people who drove long distances to work or towed RVs, purchased diesel-powered vehicles at a higher price than gas-powered vehicles, diesel fuel was less expensive at the pump, the mileage was better, and diesel engines lasted longer. Now diesel is more than 30 cents a gallon over premium unleaded and over 50 cents a gallon higher than regular unleaded.

Think about all the 18-wheelers or semi-trucks that deliver food, clothing, cars, any product across this country are diesel powered. Add to that: "Go Greyhound, leave the driving to us," the school bus that transports your children to school, tractors and all farm equipment used to grow fruits and vegetables, back up generators for large companies when a power outage occurs, the list goes on and on.

We are talking about a lot of diesel here, way more than what passenger cars would use. I think the Oil Company Wizards figured this out just as I did. They waved their magic wand and said, "Okay, here is what we are going to do. Diesel fuel costs less to produce and is in such demand they will have to pay whatever we choose to charge, so we will charge a premium price for diesel. We will also charge more for unleaded, just not as high an increase as folks need to be able to afford to get to work.

With oil selling at $103 a barrel and oil companies posting a record profit of $119 billion for 2007, the leaders of our country want more money spent on alternative fuels. The oil companies are already devoting X-amount of money, as required by the government, on alternative fuel research and ways to increase efficiency in fuels.

The gas station is not the one getting rich here, folks. They only profit by a few cents a gallon. Why do you think they sell milk, candy, cigarettes, beer, etc. They would go broke if all they had to sell was gas. Again, it's the oil companies.

Why aren't the truckers screaming and threatening to strike? I think it is because they just add the increase to the cost of delivery and that is passed on to us, the consumers.

Remember, "profit" is the money left over after all expenses are paid, from buying the barrels, to processing and delivering the product, administrative cost, research cost, lease payments and the huge salary and compensation package some CEOs appear to be getting.

When is enough, enough? What is it going to take to get some credibility and fairness for the consumers by this industry? How many yachts does each oil baron need, one for each day of the week? I think it is great they are researching alternative fuels. I wonder just how much research is being done, when what they have is so profitable.

Forget the weed pulling today and write your elected officials, demand an explanation as to why this industry is ruling the world's economy. If you need to know where to write them, give me a call and I will give you their address.

Greed, the root of all evil, is plaguing this country, and it seems to have a lot to do with energy costs. With all these billions in profits, they should be paying for the Iraq conflict as there is a rich stake of black gold there, instead of the taxpayer footing the entire bill.














For comment or questions, please e-mail webmaster@pahrumpvalleytimes.com
Copyright © Pahrump Valley Times, 1997 -