Gasoline Prices

Now, before I present the bulk of this particular post for public viewing, I would like to clarify a few things:

1. I greatly appreciate nature and the ability to enjoy a wide variety of environments. I personally feel that the continued existence of the myriad ecosystems on this planet presents some quantifiable value [be it emotional, monetary or otherwise].
2. Although I still drive a car, fly in airplanes and ride on ships, all of which contribute to global pollution in some manner or another, I feel that we should be looking for long-term solutions to our current dependence on petroleum as the primary source of power.

Maybe the above makes me an environmentalist, I'm not quite sure, but that was never my intent.

Anyway, to the point.

I have often been confronted with the question: "Who is to blame for high gasoline prices?"

To which the general response is: "Liberal environmentalists."

Now, as a person who buys plenty of gasoline and might be considered some sort of an environmentalist, I take issue with this rapid assumption.

The following constitutes my response to the continued [and mistaken] belief that 'liberal environmental policy' has severely impacted gasoline prices through the theory of supply & demand:

The United States produces approximately 9.1million barrels of oil per day while it consumes approximately 18.7 million barrels per day. reference

The remaining 9.6 million barrels are imported from a variety of countries (chiefly Canada, Mexico, Saudi Arabia, Nigeria and Venezuela). reference

• In regards to domestic supply, we might be able to marginally increase our supply through relaxed regulation, but this figure would not significantly affect the sum-total of our supply. Proposed ANWR drilling would net approximately .7million barrels per day. reference

• In regards to foreign supply, we exercise a great deal of influence over our primary importers. We do this through acting as the largest single customer in some cases (reference reference reference) and through strong military ties in other cases (reference reference) -sometimes it's even both-

With the faulty argument being that, hash environmental policy reduces domestic supply, thus forcing the Untied States to procure imported oil. It is important to consider that domestic supply is relatively constant (regulations or not) and foreign supply is relatively secure.

Now, the question remaining:

If environmentalist regulations aren't causing the high gasoline prices, what is?

To that I say, rampant speculation along with enterprising oil executives.

In defense of this proposition I present the facts that in 2008 (a time of reduced demand) major petroleum companies produced less product while earning record profits (reference reference reference).

I'll be the first to acknowledge that, as a rule, corporate charters generally demand that companies do what is best for the shareholders. I'll also be the first to admit that petroleum companies often operate on very low profit margins.

However, I will point out recent dramatic consumer price increases were not correlated with any 'liberal policy' and had little to do with actually supply or demand (domestic, foreign or otherwise).

The only logical explanation for any price increase at at time of reduced demand (in a recession no-less) is that the large petroleum companies were capitalizing on the gullible American public in an attempt to look-out for their shareholders, which is also completely logical.

-end rant