In Case You've Wondered

My blog is where my wandering thoughts are interspersed with stuff I made up. So, if while reading you find yourself confused about the context, don't feel alone. I get confused, too.

If you're here for the stories, I started another blog:

One other thing: sometimes I write words you refuse to use in front of children, or polite company, unless you have a flat tire, or hit your thumb with a hammer.

I don't use them to offend; I use them to embellish.

Saturday, July 5, 2014

Oil Boom, Increased Supply and High Costs for Fuel

Normal economics dictate an increase in supply leads to a decrease in prices. So, why are fuel prices increasing?

I'm not an expert, so don't expound my opinions, but from my vantage point, there are a few things that contribute to high prices:

Excessive regulations stifle the refining of oil in the United States. Refineries that exist can expand; after jumping through hoops to accommodate bureaucracies. Beside the permits, an equal amount of land is required to be developed into a wetland. Developing multiple acres of land into a biological system is expensive. The costs are passed on to the consumer.

Transportation of oil is expensive. Until pipelines are built, oil is transported to trucks, which take it to collection points, where it's placed on trains, barges, or ships. With some far locations, all three methods are required to get the oil to the refinery. Another expense and it's passed on to the consumer.

Inflation is the hidden cost. Devaluation of the dollar leads to an increase in the quantity to satisfy the worth of what's purchased. It's an insidious method of dealing with debt by the Fed and the result is higher fuel prices, even if every other part of the puzzle didn't cause any increase in costs.

Last, but not least: Taxes. While supposed "environmentalists" gnash their teeth and the government takes their side with new regulations, government entities lap up the gravy with abandon. Their share of the money for oil products is more than the profit of those that do all the work, yet they never seem to want to help by reducing taxes to help the consumer.

We have a boom, oil is plentiful and normal economics were thrown away for ideology and government greed. It's typical and unconscionable. The United States should be in a economic boom, but it never will be as long as current politics are allowed.

Who do we blame for high fuel prices? Look in the mirror. You might have voted for those that are causing you the most harm.


  1. A well thought out explanation of the problem. And spot on.

  2. By "current politics," I hope you are not referring to Obama's two terms. This was happening during previous terms. So, how would you suggest we end this? I am serious. Voting in a Republican won't help prices at all, in my opinion.

    1. This is nothing new.

      How does it end? With education. That's a tough thing to do, with the lying media, so the media is the first thing to dismantle and that's done by not watching, reading, or subscribing to any of their outlets.

    2. I think it is important to listen to the liars anywhere, even amongst friends.( "Keep your friends close and enemies closer.") Otherwise, how can we refute their lies?

    3. It wouldn't be so bad if the media, school systems and politicians weren't all in cahoots to lie, cheat, steal and generally screw up the lives of anyone that gets in their way.

    4. It wouldn't be so bad if the media, school systems and politicians weren't all in cahoots to lie, cheat, steal and generally screw up the lives of anyone that gets in their way.

  3. I blame commodities trading, they are the ones who always seem to bid up the price when there is even a hint of oil supply being disrupted. Plus your points are true also.

    1. They deal with a volatile commodity, so the investment is risky.

      Still, if the ability to produce, move and refine oil wasn't so hampered, the trading value would be lower and prices would follow.