by Wyld

Created on: June 01, 2008

Oil Rigged: The Truth about Gas Prices

Memorial Day weekend and it is $3.99 for a gallon of gas, the question is why? The answer is simple it is called collusion and we are being held hostage by oil producing companies who have been given that power by our very own politicians.

There are those throughout blog world that would disagree with me, stating that I do not know how oil crude becomes gas, the fact that the rest of the world has been paying $4.00 for a gallon of gas when we were only paying $2.00, that demand has spiked and that oil producers can not handle the increase in demand, and many other bogus excuses.

The truth behind Europe paying $4.00 a gallon is that more than half 56 to 60% goes to the state and that fluctuates as the price for gasoline does. Here in the States our government gets 15% of the price of gasoline. It is easier to say the rest of the world has been paying $4.00 a gallon for years and omit the percentage that goes to those countries government than it is to defend the record prices for gasoline in the United States. Smoke and mirrors a neo cons favorite weapon in their bag of tricks. So now that we have cleared up that most commonly used lie by neo cons and corrupt republicans it is time to move to theme at hand, oil rigged prices.

It is true crude oil is not gasoline. Crude oil needs to be refined to become gasoline. Where does the crude oil come from and how does it get from point A to point B to Point C to your gas station. A substantial portion comes from the gulf coast and Alaska. We as a nation own that resource which we lease out the rights to oil producers, like Conoco, BP, Texon, Shell and others, who in turn pay us a royalty for the crude oil that they produce.

The crude oil then either goes to company owned refineries or non-company refineries that then convert the crude oil to gasoline for automobiles, gas for heating houses and other types of fuel. Refineries will then sell their refined product to various outlets that supply gas stations, airlines, landlords and etc. The question on everyone's mind is how can the price be fixed to benefit the big oil producers?

In order to explain how the price can be fixed, we will also need to look at corruption at all levels of government. We will begin with northern Wyoming a very conservative republican region. Wyoming is among those states that split land ownership and mineral ownership. Those that were fortunate enough to buy both are thriving as they lease out the mineral rights

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