The real truth about gas prices January 6, 2009Posted by truthspew in Uncategorized.
Tags: Energy, gas
Check out this article and tell me that the oil companies and refiners aren’t colluding to push prices up. Tell me there isn’t price fixing going on.
The relevant paragraph comes about 10 paragraphs in:
Refineries have cut the number of barrels of crude oil they processed weekly to 14.5 million during December, from 15.4 million, according to the Energy Department. The tighter supplies are putting pressure on retail prices.
If you remember supply and demand from your macroeconomics classes you recall that if you tighten supply, price rises. The point at which the price and supply cross is called equilibrium where you’re getting the best price for the production.
But now we have the refineries playing games. I wonder who owns the refineries. Could it be the oil companies? Maybe even OPEC? Now that would make sense if you think about it. Control oil at the point of production and the point of processing.
This is why we must invest in technologies to get us off oil and we must do so promptly.
I truly believe we could have an electric car that costs anywhere from $15,000 up to $25,000 and gets 200 to 300 mpc (miles per charge) using super capacitors or advanced battery technology that can be recharged in minutes rather than hours.
More to the point we could ramp up production of these vehicles within two years. There will be opposition though, do you think entrenched oil will go down that easily?
But I think heavy government subsidies are going to be necessary to push the electric vehicle.
Then the despots of the world like the Saudi’s, Venezuelans and the like can go pound fucking sand.