When oil prices are going down (around $34 a barrel Friday) how come gas prices keep going up ($.35 since Jan 1)? Turns out that the $34 per barrel is for West Texas crude and they’re not making much gas from it. Instead, we’re getting gas from inferior oil imported from Canada, Venezuela, Saudi Arabia, and others. That oil is much more expensive, about $7 more per barrel not counting transportation cast, than West Texas crude. Why are we using foreign oil instead of West Texas crude? We don’t have pipelines in place to transport the oil out of the Southwest.
Is there any money in the massive bailout bill to build pipelines?
One answer to your initial question, it seems to me, is “because they can.” We also have to wonder (apropos of your last question) what they’re doing with the West Texas crude, and how much of it there is left — maybe we need so much gas there would be no point in building a pipeline.
But the whole mess reminds me of visiting you in Nashville years ago and your pointing out that all the produce in the stores was from California and New Jersey, while the locally grown produce went elsewhere.
Was there any money in George W’s bailout to do so?
I think they are sticking it to us because they can.
And I think its time we give up our oil addiction. Then we won’t need the new pipeline. Oil is old school. Green is the new red, white and blue!! 😉
And yet we are still all driving around.