These were the creators of an article that ran this morning titled: Teeth Gritted, Drivers adjust to $4 Gasoline.
Among a couple of inaccurate, opinionated comments one blatant distortion they provided was
“All this has led to a vast transfer of wealth from American drivers to domestic and foreign oil producers.”
Wrong. Or Epic Fail as it would be put on Digg. The transfer of currency to wealthy oil producers is occurring from Oil product companies world wide, not drivers in America. Specifically, Americans are paying current high prices to insure that the refineries (i.e. Exxon, BP, etc.) are going to be able to maintain their current profit levels 13 years from now. That’s right, the price of a gallon of gas today is set based upon the speculation of Energy Traders on 13 year futures. See my article a couple of days ago to learn what futures trading is.
With the media sworn to their own misleading, blanket statements it’s no wonder the population at large has no idea, zero, what makes the current price of gas so high. As long as our current prices at the pump are directly correlated to the current price of oil by these irresponsible writers people will still continue to think this is an issue of supply and demand. We are not in a situation where we need to pay this much at the pump or China’s going to take our gas to get to work.
We pay these prices so that the major oil product producers can continue to guarantee annual record profits to their investors many, many years from now. Should the international price for a barrel of oil come off it’s current record highs the excess in the price you’re paying at the pump today will be recorded as pure profit for the oil product producers, not the oil producers, years from now.
I said it in the previous post and I’ll say it again. Know this: Oil product producers (not oil producers) are going to make money or they are going to make more money. Under their formula there is no risk of loss.
I agree that petoleum by product companies are all about making a profit. They are going to pay their investors regardless on whether or not our economy pays the price. I think it is crazy that people are having to pay more for gas yet their wages are not increasing. No wonder the economy is hurting. When it comes to money people are just down right greedy. I guess it is the nature of the beast.