PROBLEM
Gas prices at the pump soar whenever there is unrest anywhere in the world, the Arabs simply raise the price of oil, or big oil companies think their huge profits are going to be diminished in some way.

WHO’S TO BLAME?
Blame can only fall on those who actually raise the price of gas – the oil companies. At recent Senate panel hearings big oil said they were not to blame because the price of their main raw material (oil) has increased. That is not a reason, it is an excuse. All manufacturers, producers, and businesses of all kind constantly deal with rising material prices. It simply means they have to find ways to reduce the cost of materials and/or methods of production or reduce their profit margin to remain competitive. In today’s economy, most businesses, save oil companies, are patriotic and business savvy enough to do their part in helping their customers by reducing their prices, cutting their profits, offering significant discounts and special sales. We are all in these difficult times together, and these businesses exemplify what it means to be a good American and help our country in time of need. Too bad big oil doesn’t see it that way.

OTHER CLAIMS BY BIG OIL
They say if their billions of dollars in subsidies are cut they will layoff employees, cut domestic production and raise their prices even more. We all understand supply and demand economics; so shame on big oil for threatening to manipulate the market for their own greed at the expense of their employees and their biggest customer, the American public. Do they truly believe we are so dumb and naïve as to accept such a ruse?

WHAT ABOUT CONGRESS?
Will Congress suspend or reduce the “favored nation” deal oil companies now receive? Not likely. Why? – Because big oil is in their pocketbook. Oil companies and their lobbyists give big bucks to Congressional campaign coffers in anticipation of receiving special consideration on laws and regulations affecting their industry. That’s how the oil companies started receiving the subsidies in the first place.

SOLUTION
If you have been reading my blogs, you will notice I never present a problem without a sensible, reasonable solution. In this case, Senator Jay Rockefeller (great-grandson of John D. Rockefeller, the founder of Standard Oil) said the oil executives are “deeply, profoundly out of touch” with the American public. If Congress has any backbone at all, this is what they should do:

1.  Terminate the tax subsidies for Standard Oil, Exxon, Mobil, Shell, ConocoPhillips and BP America. Use that money to help balance the budget instead of cutting into education and health programs.

2.  Give big oil a “drop dead date” to stop buying oil from Arab nations, such as Iran, that use that money to provide financial support to terrorist entities such as al-Qaeda.

3.  Allow oil companies to drill and refine American oil from vast fields such as the Williston Basin in Montana, North and South Dakota and Saskatchewan, Canada. The field, discovered in 1953, is four times the size of the largest field in Saudi Arabia. Montana has long been ready to tap into the field, but Congress continues to save it and pay higher prices to Middle East countries. How dumb is that? NOTE: Read about my high school summer job in North Dakota, working as a roughneck in my novel Corps Vet.

4.  Oil companies are in the energy business. Encourage them to expand production in the alternative fuel business with a view toward phasing out oil, which is unfriendly to our environment.

Look for future blogs related to energy and other issues affecting our nation.

Semper Fi,
Dick

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