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FUEL OIL CRISIS * USA - Gas Gangsters
USA -Mad Gorilla's Jungle, by John Hull -23 April 2008: -- ... A potentially devastating situation is developing that nobody seems to be paying much attention to. I'm referring to the continuing upward spiral in crude oil prices which is forcing the price of gas at the pump through the roof... But is it, really? First, a few facts:
1. We have more oil, either in the system or located and pumpable, than ever before in our history.
2. The EPA requires manufacturers to produce at least 14 different blends of gas "to prevent pollution" during certain parts of the year.
3. We only get about 10-15% of our oil from the Mideast. The bulk of it comes from Canada and Mexico, and local production in the US.
4. Our refineries are running at full capacity 24/7/365 except when they shut down for maintenance or switching blends, and no new refineries have been built since about 1978.
* Start first with the speculators
With more oil than ever before available, there is no reason for paying $117 a barrel as if there was a real shortage of crude. They are gouging us all to make as much money as possible by artificially creating what amounts to a shortage situation. Next in line is government, at every level, tacking tax on each gallon. Gasoline is like food -- a necessity of existence in modern life -- and should be taxed the same way. Food is either not taxed at all, or at a very low rate. In addition, eliminate the boutique blends which would enable refineries to produce a lot more gas. Correcting those three areas would drop the price per gallon back below $2.00 in one fell swoop... What will be the consequences if we don't halt the rise of fuel prices? Consider this: About 80% of the things we buy every day are transported to our stores and supermarkets by truck. Truckers are paying well in excess of $4.00 a gallon for diesel fuel and that will likely go much higher. They are already having trouble making enough to keep their trucks on the road... The average truck tractor costs in excess of $100,000. That means they have to keep those trucks rolling and hauling cargo to pay for the truck and make a living. When fuel costs start exceeding what they make on a load, those trucks will be parked. If they can't make the payments, they lose the truck, and we slip farther and farther behind as prices get forced up by the laws of supply and demand... Another factor is the use of ethanol as an additive in gas to cut down on oil consumption. The primary source for that is corn at present... You have to eat, and you have to get to work, so what do you do? People are already cutting back on other expenses, and not buying new products. No sales means no profits. No profits means cut back in the work force. People get laid off, which means higher unemployment costs, and that puts more burden on those still paying into the system to make up the shortfall in sales taxes, employment tax, etc.... All of the above leads to one thing at the end: a depression... And all over a situation that has been artificially created. There is only one way this is not going to happen. Consumers -- all of us -- are going to have to stand up and demand that these things get fixed. They are fixable, but only if we have the will to hold the feet of those in government to the fire. If we don't, it will get real ugly real fast. If you're not quite convinced, remember the beginning of "The Road Warrior." The breakdown of society and the wars that followed was due to fuel shortages. That scenario isn't so far fetched as one might think...
* White knight rides in on big rig to save trucking company
Richfield,WIS,USA -WKYC-TV (Cleveland,OH), by Vic Gideon -23 April 2008: -- A soft economy and high diesel prices had pushed Wills Trucking to the brink of bankruptcy... It was a rough stretch of road for the 120 employees... Summit County Common Pleas Court Judge Robert Gippin approved the sale of the company Wednesday to Akron businessman Craig Stacy... Stacy has bought nine companies now, almost all of them in distress...
Labels: fuel costs troubles
posted by Unknown @ 9:27 AM
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