Politics, popular culture and Reagan conservatism spewed maybe once a week...or less
Wednesday, June 27, 2012
Big Oil cabal controls oil prices? Complete bunk...
I am sincerely convinced that, contrary to Bill O'Reilly's BIG OIL CONSPIRACY stuff he trots out every time the price of gas gets high, oil prices are absolutely and totally market driven.
And NO: Obama is not twisting OPEC arms and bribing the Saudis to lower oil prices. He doesn't have that kind of mojo, although he thinks he does.
China and India's huge unsustainable growth rates have cooled, and their demand for oil has been curbed. Ditto here in the US, as Obama has ensured that lots of Americans have been fired, so unemployed folk have less money to put in their gas tanks, and demand is down here as well.
Supply and demand: there's a glut of oil available in the world (and this will be the case for the next 300 years or more), but fewer drivers demanding the stuff.
Duh. Prices come down, it's inarguable.
And Bill O'Reilly: how come you are screaming about speculators and oil cartels setting prices when oil is high, but when oil comes down, we only hear crickets chirping from you?
Do you really think that if these guys were able to set prices arbitrarily, that they would get together and decide to lower prices and forego billions and billions in profits, what, just for PR purposes? What would a fly on the wall of Big Oil cabal hear during their discussions of how to LOWER the price of oil, since they have all of this power to control prices:
Sheik Abdullah: ' The Americans, especially this O'Reilly guy, are screaming bloody murder about us gouging them on the price of oil. We need to lower the prices, now that everyone's angry.
Prince Omar: ' Yes, I agree. We all need to lower prices per barrel of oil from $107 to $80 per barrel, and in this way, they world will love us. In doing so, we will only forego $1 TRILLION dollars in revenue, but it's worth it to us to be seen as the good guys.
Prince Abdullah: 'I agree also, let's give the consumers their money back. We need to improve our tarnished image, and a TRILLION dollars is certainly a fair price to achieve the love we need.'
Yeah, right. This is not the way things work in the world. Not a chance, Bill. If these guys could do it, oil prices would NEVER come down, not ever. But they do come down due to market forces, and there goes your conspiracy theory down the tubes.
How else would you explain away this fall in prices, if you say that speculators and oil cartels have everything under their control?
You can't, Bill O'Reilly. Market forces determine this globally available commodity, and nothing more. You are profoundly wrong about your Big Oil conspiracy, and it's demonstrable.