Where Lies Reponsibility For The High Price Of Oil?

Worried about the rising cost of oil?

You should be.

According to media blurb, the rise in oil price, closing on $100 per barrel and trumpeted by NBC, CNN, and others with all the vigor and excitement of a mammoth lottery payout, is happening due to speculation over low reserves in the US and fear of a shut down in the Middle East.

No-one ventures to suggest where lies the responsibility for these huge increases, muttering vaguely of speculators, OPEC, and Arab uncertainty, whenever the subject is hinted at.

There is one person directly responsible; or, at least, one group of people. The President of the United States and his administration.

The Iraq war was the single over-riding factor responsible for the increase in oil prices since 2003.

In April 2002, gas prices averaged around $1.30 per gallon. By March 2003, the start of the war, they had risen to $1.72.

Since then, while seesawing drastically, the price rose to well over $3.00 in summer 2006, and today is presently close to $3.50 in some areas and heading for $4.00 per gallon.

While some analysts would deem it too simplistic to place all the blame on George W Bush, citing Hurricane Katrina and other factors as relevant to the overall picture, I find those elements superfluous. If the Iraq war had never been waged, they would have created mere hiccups, soon remedied. As it was, they simply added to the overall problem.

However, it is not only the Iraq war that is fueling today’s high oil prices. George W Bush has maintained throughout his presidency that the economy of the US is strong and healthy. If that is so, why has the US dollar been diving to all time lows on the international currency markets for the past five years, as verified by this graph of the dollar against the UK pound:

5year.png

So low has the dollar now sunk, that investors are moving away from it and into oil, further accelerating the rise in price and guaranteeing the figure will push way beyond the $100 per barrel mark.

The only achievements of George W Bush and his cowboys in the eight years of their reign, has been to devastate the Middle East, slaughter God-only-knows how many in the process, and decimate the US economy by allowing the corporates to dodge their tax obligations and ship most of their production to foreign nations.

It is US citizens, and the rest of the world, who are now reaping the results of this human and economic carnage.

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7 Replies to “Where Lies Reponsibility For The High Price Of Oil?”

  1. I don’t suppose the secret Cheney led energy policy meetings at the start of Bush’s regime (which included input from all the oil companies) was in the least responsible. I don’t know if we are past peak oil, but I do know that the DeBeers restrict diamonds (which are actually plentiful) to keep the price up.

  2. Um, ok, someone is moving into oil stocks but it sho ’nuff ain’t me (probably those folks who watch Faux business news). Production costs are murdering any gains from cost increases. Watch what happens after one or two quarterly earnings reports hit the street.

    I wouldn’t touch that crap right now with a 10 foot pole.

  3. A confluence, surely, R.J. Undoubtedly peak oil (biggest secret on the planet) combined with the cretinous interference in the Middle East and the unstable markets – housing, insurance, futures, etc. All of our “energy” needs to be focussed, and focussed seriously, on alternative sources. I don’t see that happening. Do you think it will all end on a fast skid or overnight? And fingers crossed on Iran, the dumb boy is drinking hard, I hear.

  4. Jerry – yes, and the IBC estimate is conservative. A count done for The Lancet, updated in October 2006, estimates the likely figure at 655,000. Despite expected criticism from politicians, the methodology has proved extremely accurate in other polls.

    Flimsy – we know that the corporates pull all sorts of tricks to deceive the public, and the oil companies are no paragons of virtue. Let’s face it, they’ve been in bed with Bush/Cheney all along.

    NYM – I’m not sure I’d touch it either, but then, I wouldn’t have invested in the sub-prime market either. Plenty did, though.

    WWW – certainly a confluence, but I believe the Iraq war to be the mighty river into which the tributaries of unstable markets flow. The only effort towards alternative energy sources comes from those who can make the fastest buck from it. I’ve argued long enough on the disastrous effects on this planet of large scale bio-fuel production, but the greedy are blinded by yet another cash cow. Most likely global warming will ever more rapidly rise to the 6-7 degree mark, civilization will break down, the wealthy and powerful will take shelter in their well-prepared bunkers and leave the rest of us to slaughter each other over the rapidly depleting food sources. We can only hope the dumb boy eventually suffers a similar fate to his historical counterpart – the Roman Emperor Nero. Though I doubt there’s anyone in the US Senate with the backbone to carry it out.

    A gloomy scenario, but I believe it realistic, rather than pessimistic. Of course, there’s always a possibility the Judao/Christian Messiah will ride in on his white charger and save us all in the nick of time, with the exception of Pat Robertson, John Hagee, Dobson, and a few others who will be left behind to burn eternally in Hell.

  5. My vision is surprisingly alike, R.J., except i believe the rich will take shelter in shelters very far underground and use thermonucleics to get rid of the ‘chaff’, leaving their capital assets intact. Of course, they can always rebuild creation with their genetic engineering, can’t they?

    Oh, and when Isa (s.a.s.)comes again? We believe he will rule with Islamic law. That just might put a crimp in some of the crazier Christian cults, don’t you think?

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