EDITOR:This is in response to "More profit, more, more" in The Daily News on June 23.
An anonymous writer complains that gas prices aren't going down fast enough or far enough, and he implies price gouging by the oil industry (implying collusion, which is a criminal offense). In actuality, overall profits in oil and gas average around 6 percent, while manufacturing profits are about 9.2 percent and Big Pharma and Big Soda are about three times that much (and taxes steal about 60 cents per gallon with no role in the production or distribution of the gasoline).
As I wrote in my RenewAmerica column on March 24:
Gas was less than $2.30 a gallon in 2007, seven years into the Bush 43 Administration. Gas averaged $1.84 when Obama was inaugurated, but it is over twice that high after two years of "Green Energy" - over four dollars a gallon and still rising.
In the 2006-07 period, Nancy Pelosi was blaming "high" gas prices on, quote, "a government run for the oil companies," unquote. A few days ago, a friend of mine was still blaming Bush - over four years later - for today's $4 gas, because "the Bushes were oil men."
I don't want to embarrass my friend, but he probably doesn't read newspapers anyway. Some of our most 'outspoken' people never do.
Blaming oil men for a gas shortage is like blaming snowmen for cold weather.
But think about it: "Oil men" make money selling petroleum, and they sell more when the price is low. Companies such as Halliburton make money on sales and service of oil drilling equipment, and the less drilling, the less money they make (while the more drilling, the greater the supply of oil, meaning lower prices at the pump).
Those oil companies prefer lower crude oil prices - and stable prices - because they have to buy oil on the world market too, you know.
The less they are allowed to drill for, the more crude they have to purchase, and the higher the price of oil and gasoline. End quote.
The declining purchasing power of the U.S. dollar is another major factor in price increases (aggravated by our debt crisis, and the downgrading of our national credit rating).
Your anonymous complainer would like to blame Congress and the oil companies but not the president's "greenie" agenda?
Sounds suspiciously partisan to me.