It is fair that the influences on gasoline are primarily supply related. there is an increase in demand and there is a decrease in supply. If we are to understand the problems we face, then we must consider the issues more deeply. To imply that oil giants are simply reacting to the simple business rules they are being faced with is silly, and that's using a polite term.

The price of oil doesn't matter; the price of gas has dropped in the face of rising oil prices. The price of gas has also risen in the face of dropping oil prices. Market speculation could also be a factor, and shortages will drive this variable. Just today, an anticipated output of gas on the market was not realized, so dropping wholesale gas prices suddenly did an about face to the pleasure of the Big Oil. (Why do we allow this valuable commodity to be speculated on like this? One doesn't need gold, silver, or those types of things to live). I really think that OPEC and other oil producing nations only affect the price of gas when there are major announcements. (Again, why do we allow gas to be manipulated considering the terrible effect that an OPEC nations anti-US stand would have on our country?) So is it that poor gasoline is just been hit with an unfortunate series of events? I think not.

The price of gasoline will be "fair" when it has an economical and viable alternative it is forced to compete with. Like a utility, I have no choice but buy fuel from a gasoline supplier to do my job everyday. If I want to heat my home, I must pay my utility bill. Utilities are regulated by state government and for good reason. They are given an area to supply heat and light and they can charge whatever they see fit. Without regulation, they would be able to wreak havoc. The gas companies, through their collective practices, have become one big utility. They control the price of this product and creating mega-paydays for their CEO's. There is no one looking over their shoulders, because of the mega-lobbying power that they have. Remember the 2006 elections, how far they dropped the price of gas leading up to Nov? Then the steady increase since? We're headed for $4.00 a gallon by next August, if something isn't done.

There have been efforts, the most recent by Senator Ron Wyden is attempting to pass amendments that will force oil companies to invest in refineries and refinery performance or they lose the 4 billion in subsidies they receive. Oregon is lucky to have a senator as courageous as Senator Wyden. He is taking on the most powerful lobbying group in history. I know that it will be tough for the speculators and the mega-rich oil executive, but the only way to decrease price is to increase supply. The oil companies will continue to come up with new excuses, like hurricane Alfred is in the Pacific, or the maintenance guy at a refinery took the day off. Senator Wyden has previously presented amendments that would have funded the creation of hydrogen power for automobiles and the infrastructure to supply hydrogen to those cars. Hydrogen is the alternative source Big Oil should be scared of. It can be created from water and is as bio-friendly as it gets. It's the competitor we need to create a truly honest supply and demand playing field. Let's hope Senator Wyden is successful.

Learn more about this author, Steven Coursey.
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