Start up that SUV and take the family for a Sunday drive because gas prices are falling. It’s sweet crude oil, an actual product grade, poured over a fresh stack of pancakes. There’s nothing more filling than a good breakfast to lift our spirits, and in this case, also our economy. However the skydiving of oil prices has me on alert, that is, when I�m not soaking up sunshine with my hand on a gas pump. At a time when the USA is pushing for energy independence this could be a step back we don’twant to take.
By Stephan Puff,
Senior Staff Writer
Start up that SUV and take the family for a Sunday drive because gas prices are falling. It’s sweet crude oil, an actual product grade, poured over a fresh stack of pancakes. There’s nothing more filling than a good breakfast to lift our spirits, and in this case, also our economy. However the skydiving of oil prices has me on alert, that is, when I�m not soaking up sunshine with my hand on a gas pump. At a time when the USA is pushing for energy independence this could be a step back we don’twant to take.
The possible reasons why oil prices plunge or rise are diverse to say the least. Oil prices generally play the typical stock market game. Companies act in anticipation of oil demand. If an oil strike is found, like the new oil fields in the Gulf Coast of Mexico, then prices might dip because of the abundance of oil on the market. Adversely, when Hurricane Katrina closed oil production prices jumped to over 3 dollars because of expected low resources.
There is no reason why oil already bought that’s in the pumps, at a certain price per barrel, should reflect the current market value of oil. Still ridiculously, it’s the same as the stock market, sometimes we gain and sometimes we lose. Aside from expected price fluxes, there are also the hidden agendas of the industry’s leaders.
I abstain from calling any of the theories about pricing �conspiracies� at this point. If anything the recent plans are deflections for trying to avoid current trends negative for the industry.
While gas prices were rising, the companies producing gas-guzzling SUVs and big trucks took losses and the more fuel-efficient cars brought in the money. As this trend continues, the amount of gas America will potentially consume descends and American companies and consumers are forced to look at alternatives to foreign fuels. However, foreign companies and organizations like The Organization of the Petroleum Exporting Countries (OPEC), certainly do not want America to become self-sufficient. OPEC has a hand on oil pricing and that hand certainly reaches into America.
If OPEC drops oil prices, maybe, it can spark American consumers to reconfirm luxury is more important than efficiency. In turn, this would deflect the production of hybridization and alternative fuels, while concreting our dependency on other countries like Venezuela and Saudi Arabia to maintain our sweet maple syrup lifestyle.
No careful news source has passed up the chance to analyze this price drop as a boost for the Republican Party before the November elections.
Since they are in control of the Presidency, House, and Senate and more known for economic gains, they will enjoy the extra votes of consumer confidence at the polls.
Perhaps it was a strategy, since both president and vice president have oil ties, or it was just a lucky strike. Either way, it’s a chance for America to prove more than politics.
I�d rather not see us be sucked back into our gas-guzzling past and this is a test for the direction of America.
Whether it is outside forces trying to sway us, a market trend, or partisan politics, there can be no denying this is an opportunity to use our extra money to set our economy for success.
View this writer’s profile.