Posted by: whatsreally | May 15, 2011

The Price of Gas and Gold

I hear a lot of griping about gas prices. I agree that prices are a bit high, but gas/oil are commodities that are sold on the open market to the highest bidder. The government has no impact on fuel prices and has no real tools to control the price of oil, no more than they can control the price of gold.

People wanting more drilling don’t understand that oil they is found in America won’t stay in America, it will go to the highest bidder. Some people think they will increase supply and lower the price, not true. OPEC controls their oil output to stabilize prices to THEIR liking and whatever additional oil is pulled from American wells will certainly be offset by a decrease in oil pulled from wells in OPEC member countries.

The basic problem with gas/oil lies in the demand and not supply. You can control how much you consume and immediately save yourself a lot of money, but I guess it’s easier to blame the government because that’s who the media tells you to blame, or its easier to blame the oil companies for making money which is what they are supposed to do. It is the oil companies’ job to watch their bottom line/make money and your job to watch your own bottom line/save money.

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