Many are not sure why the price of gasoline has risen from an average of $1.87 this time four years ago to above $4 in many areas. We see three key reasons for this. There are sub-reasons in each category, and we will lightly elaborate. First, let’s look at the three reasons as we see them.
- The negative political and regulatory atmosphere created by a very anti-oil and natural gas Presidential Administration. By shutting off the Gulf of Mexico, not only did they kill thousands of jobs, but they cut off an increasing supply of oil from the Gulf. The regulatory hypocrisy has taken to the land as well where “fracking” has suddenly become the new “f-word” as this highly effective method of gathering natural gas from the ground has become tainted for political reasons. Stopping the Keystone Pipeline despite years of “economic impact” reviews shows that this administration is absolutely comfortable with the increasing gasoline prices. Likely, these are the lowest we will see if the election goes left this year.
- Second, we have to expand our domestic refining capacity. Refineries are just not being built. Instead, they are being blocked. This pushes what cannot be refined in the United States outside the country. Believe it or not (and it is true), some of our oil that comes out of wells on land in the United States leaves our country in tankers, and the refined fuel products are then sold back to us. How efficient is that? Not very.
- The false idea that there are “real alternatives” to fossil fuels. Okay, there is nuclear. LPG gas is still a fossil fuel, but should be considered. Little else out there can dependably be used to fuel a car to go 350 miles with the air conditioner on. Nor are there any real alternatives that can put a plane or jet loaded with passengers in flight.
That’s how I see it. Let me know what you think!