Remember this last summer, we were not just sweating because of the heat, but because we were looking at the prospect of filling our tanks with $4.20 gas. Back in June of this year I wrote about the god awful speculators, those capitalist pigs that were driving the price of oil through the roof, everyone wanted to go out and hang them. It was these faceless, evil Wall Street minions that were making it hard for schools boards to bus their students to school, making fixed income folks choose, "will it be high fiber...or high octane" and making parents choose between food for baby or gas for the car to get to work. Sons-a-b*tches!
But wait, I just bought gas for my car for $149.9 a gallon today. What the.....wait a minute....how did that happen. Could it be that because of the slow down in the economy, here and world wide that gas consumption has decreased? Could it be that because of the high prices we started to produce more oil? Could it be that, like this article states, we are driving less because the prices just made it to costly to go on long trips? The answer is "YES" to all of it, and it's called the free market. And those god awful speculators we all hated, well they saw what was happening and they did what speculators do....they speculated that we will be driving less, that we will travel less because of the price of oil. And with the slow down, to a crawl, of the economy, they "speculated" that we will use even less oil. Oil today is again under $40 bucks a barrel, Can I get an "AMEN"! And it's all because of those faceless, Wall Street types, those speculators we all hated, or at least the folks that forgot about the free market system hated, that are driving down the prices for the simple reason that they see less quantity demand in the future. It's what they do, and should we go up and say thank you to them, NO!, because it's business.
And speaking of business, do we all still hate the oil companies now, or has that mania wained a bit as well. They are making much less per gallon sold now, but the Government is still making the same revenue per gallon, about $0.18 per. Their income as gone down a little because we're buying less, but they are still making the same per gallon. So let's keep this in mind as we see profits for "BIG OIL" start to fall to norms, where they were before, and know that the next administration will more than likely raise taxes on oil and all form of energy as soon as they can. With that said, it looks like the "Sunday Drive" might come back as one of the most cost effective forms of entertainment we will have for a while. Now go fill up, drive around and warm up the planet a little, it's look'n like a cold winter this year.