Is this the one where they are going to shift the subsidy from the oil industry (republican focus, mainly) to agribusiness/biofuels (democratic focus, mainly)? Or am I thinking about one of the Clinton or Obama smokescreen activist positions from the recent debate? Piss away more of my tax dollars, just a change in the toilet.
why yea think we are paying double the amount as when Clinton was in office.
It was about 2000 when the Chinese and Indian economies began to reach critical mass following the globalization push that began at the end of the cold war. You then had the shocks of 911 and volatility related to the Middle East ever since.
Also, it appears that OPEC is finally able to hold together on its production quotas. At the time (2001) OPEC was trying to support a price basket in the mid $20 range. Volatility spikes due to various disruptions in the supply infrastructure relative to refining capacity and Chinese and Indian demand (we have actually had more of a natural demand driven hike than artificial OPEC hike) showed OPEC that the the consumption patterns of the US motoring public, among other consumers, was resistant to higher prices in the $2 range.
However, we have to a great extent actually been in a more pure supply and demand market with demand outstripping production capability. That should have changed by now, one would think, or be starting to soon. OPEC may decide on a new artificial production quota to keep oil at least around $60, or whatever the market will bear without reducing demand or promoting things like oil sands or oil shale.
It's amazing though, how the all powerful oil companies saw margins tank through much of the 1990s when production outstripped demand due to market factors. How could they allow that to happen, being all powerful? Shareholders sure would have like today's profits in the 1990s.
Prices were so low, that everybody started buying huge trucks to use as single person commuter cars and such. Only thing missing from the Canyonaros were the tail fins. But now that international market factors have changed, the oil companies MUST be manipulating things.
The problem is, everyone still wants to drive the Canyonaros and not the fuel efficient cars they replaced. Like it or not, post 1973 is the reality for US drivers, and the 1990s were an exception, not the rule. And with globalization we have more and more people sucking up the oil to add to those pressures.
You really want to stick it to "the man?" Ditch the Canyonaro for an economy sub compact. Impact demand, even a few percent, and you will see a real impact on price. If we get into full blown recession mode that will likely be the case as well since consumer patters will change and demand must take a hit.
Charon
