More hijinks from the "lib'rul media"...

[misanthrope]

...Big shock here: Oil prices driven by demand

Typical slant by the author wherein he blames environmentalists for gasoline prices. Not once does he mention the actual root of the whole thing, which is basic capitalistic principle. Oil companies and refiners are in the business to make money, not to supply consumers with cheap and plentiful petroleum products. Their only obligation is to the bottom line. If increasing refining capacity reduces gasoline prices, and in turn reduces their profits, then where is the incentive for them to increase refineries? It's basic economic theory.

However, what reeks worst about this is that the media outlet failed to identify the author--someone from whom they specifically requested this article--is a lobbyist for oil interests in the state capital.

Damn, when will that "lib'rul media" give us a rest?! :eyes:

[Initech]

1. Why hasnt anyone called the oil companies out on this bullshit yet?

We pay three bucks a gallon, they post double-digit BILLION dollar profits, and the only excuse they can come up with is "driven up by demand"?

I call bullshit.

[misanthrope]

6. It is partially "demand"...

...but it's also "supply." Until we give them a reason to lower prices, they will fleece us for what we will pay. It's greed on one side and myopia on the other.

Unfortunately, that trend doesn't look to cease anytime soon.

[Jara sang]

2. Where else in history did a country blame it's woes on a scapegoat?

Oh yeah...

[misanthrope]

5. Not just them...

...all politicians adore scapegoats. It keeps folks distracted.

[ThoughtCriminal]

3. It's mostly the huge increase in cost of crude oil

Which has been going up due to Middle-East tensions.
Refining is only a small part of the cost. As for refinery capacity, I remember when Bush released reserves after Katrina, DOE officials said that this would help because there was plenty of idle capacity - so I call BS on the 98%.

These editorials often site the fact that there have been no new refineries built. I assume that the author also believes that the U.S. population has not grown since 1959 since that was the last time we added a new state.

[misanthrope]

4. And there won't be any refineries built...

...until an economic factors jostles them into it. As long as they can get away with bottlenecking the flow of refined petroleum, and get the maximum dollar for it, they will. They have absolutely no reason to do otherwise.

Now, if demand dropped to the point that they would make more money selling more gallons at a reduced price, then they will. Otherwise, Big Oil, in tandem with consumers, will drive things in the current direction.