It seems that there is still some confusion as to what's causing high oil prices.
So I'm gonna break it down nice and easy so that everybody can understand.
And if after this explanation, you still insist on believing that it's a conspiracy, that it's Big Oil and GW and Haliburton, well then there's nothing I can do for you, for you really don't care to know what the truth is, you just want to bitch and whine because you get some kind of psychotic kick out of it.
So here it is people;
The Top 7 Reasons Why Gas Prices are So High
- China’s booming economy demands oil.
- America, the largest economy in the world, is booming, which demands oil.
- The world, global GDP growing at 3.8%, demands oil.
- Refining capacity has been limited here in the US primarily due to environmental regulations and activism.
- The multitude of local government regulations requiring a whole host of detergents, additives, etc., be added to the gas makes refining hundreds of grades of gas somewhat costly.
- Gas taxes.
- A weak dollar.
3 comments:
Read an editorial today hypothesizing that Saudi Arabia contributes large amounts of $ to environmentalists here in the U.S. to keep U.S. oil capacity low, and therefore keep the Saudi's cut of the pie high.
Cenk,
you could make the same argument for Indonesia (and Malaysia I think). They both subsidize their oil.
That being said, nothing is for free. And while demand for the oil might go up, the higher taxes required to subsidize that oil would decrease macro demand, but it's merely a theoretical argument.
jtapp,
I wouldn't doubt it. MOney would be in it for you if you could get some proof of that though.
Cenk Sumbas download
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