January 10, 2012
You don’t have to be a genius to know that gasoline costs around $3.50 per gallon in the US.
What most Americans don’t know is that the only thing keeping the price above $2.00 is the fact that our oil companies are exporting our gasoline at bargain basement prices to their own foreign subsidiaries subsidized by high American prices.
You see, gasoline usage, around the world, has fallen dramatically.
Gas is a liquid. Imagine a glass of water. You fill it to the top, you add more, it overflows.
Same with gasoline. Tank farms fill up, the rusty pickup truck in the driveway has gas in it, the BP station is full to capacity, everything that can hold gasoline except for your bath tub is filled to capacity. Normally, this would crash prices.
Instead, America exports gas, dirt cheap and in huge volume, 480,000 barrels per day. But this is an export you say, a good thing. Is it now?
- American refineries are the most expensive in the world with the highest wages
- The gasoline exported was made from crude oil shipped halfway around the world
- To gain market share, America would have to compete with refineries closer to oil supplies, refineries with cheap labor, most of which are owned by governments or government controlled corporations
This means America’s exports are subsidized. By “subsidized,” we mean “fixed” or “rigged.” I think it is safe to say we have known this for a very long time, I don’t expect anyone to have a heart attack reading this.
Ah, but there is more. A while ago, oil hit $70 bucks a barrel. Even that was high, high enough for gas to go to $1.79 a gallon though the price never moved an inch, not up to $1.79 or would that be “down?”
Below is a graph showing imported oil hitting $37.00 per barrel after the economic crash. Today oil is over $100.00 per barrel and the economic crisis has spread to Europe and actually gotten much worse.