Robert Reiner and Richard Bangs write in the Seattle Post-Intelligencer:
The gas prices crushing consumers dropped 80 cents a gallon since August. President Bush said, “That’s good news for the American consumer.” But there is more to the price changes than meets the eye.
Something Washington Post journalist Bob Woodward said two years ago while prices were going higher sends chills: “They could go down very quickly. That’s the Saudis’ pledge.” According to Woodward, Prince Bandar bin Sultan, Saudi Arabia’s ambassador to the United States, “told President Bush that the Saudis would cut oil prices to ensure a strong economy for Election Day.” This prediction has come to fruition.
U.S. oil company executives also possess the power to allow price drops for the election. They have enough room to play — including last year’s collective $100 billion in record profits and Exxon Mobil’s own near record $10.6 billion profits this past quarter.
As I said — like we didn’t know.
Oil executives are full of fear over new leadership in a Congress that would investigate them.
They are particularly afraid of Rep. Charles Rangel chairing the Ways and Means Committee. Rangel could ask: Why do companies that generate record profits from U.S. consumers receive $7.2 billion in government subsidies? Why was U.S. Rep. Tom DeLay, R-Texas, then Republican House leader, allowed to hold open a five-minute floor vote in the House for 48 minutes until some $2.6 billion in tax breaks for the major oil companies were approved by a two-vote margin? Just this week we learned of the administration’s refusal to pursue hundreds of millions in fees for offshore drilling. Why?
Those policies defy basic logic until we look at the $32 million in contributions from oil representatives given to Republican congressional and presidential campaigns and the Republican Party during the 2004 and 2006 elections (versus $7 million to Democrats), according to the Center for Responsive Politics.
Like we didn’t know.
NBC News Anchor Brian Williams pointed out, “There are skeptics and cynics out there who say there’s nothing to make voters happier than paying less for gasoline, and they’re going to wonder: Did somebody just open a big spigot?”
An “improved” economy is a political boon to incumbent legislators. The Dow Jones high has appeared when gas prices on average dropped nearly 80 cents. It’s as though the U.S. doesn’t want to know why the prices are declining; we’re just too happy about it to care.
If I could draw, I’d draw a worm on a hook and label it “temporary oil price reductions.” And then I’d draw Bush with an oil company robber baron and a sheik holding the fishing rod, and the fish would be labelled “voter.”
The U.S. could again be frustrated when the Saudis and oil executives close the spigot after the upcoming elections. Maybe then we’ll want to know why the gas prices arbitrarily fluctuate.
Like maybe more of news media ought to be investigating this phenomenon before the election, hmmmm?
If I could draw, I’d draw a worm on a hook and label it “temporary oil price reductions.†And then I’d draw Bush with an oil company robber baron and a sheik holding the fishing rod, and the fish would be labelled “voter.â€
The Heretik is pretty good with that kind of stuff.
Beyond the short term political season, we all need to reconsider the concept of “peak oil”.
Please read Michael Klare at TomDispatch’s September archive:
“Reading the Gas Pump Numbers:
What Do Falling Oil Prices Tell Us about War with Iran, the Elections, and Peak-Oil Theory”
found at: http://www.tomdispatch.com/index.mhtml?mm=9&yr=2006
It’s the second article on the page. I
Since the price is certain to go up, there is money to be made in oil options and derivative speculation.
Anybody that doesn’t realize that prices will steadily rise after 7 Nov. probably deserves the government they get.
I own oil stocks and am loving the dividends.
I read an ‘explanation’ of the price drop in the papar. The ‘reason’ is no hurricanes in the gulf. Oil speculation after Katrina & Rita was based on the expectation that hurricanes woould disrupt refinery operations. The reoprt mocked the forty-something percent who believe the price drop was to benefit incumbents.
Should you be one of the visionaries who beleives the price drop was because we had no hurricanes, I congratulate your wisdom. In fact, for someone so astute, I happen to have a great deal on land in Florida – a bargain. Cash only in small unmarked bills.
I did a study of gasoline prices on my blog about a month ago.
http://crackerdog.blogspot.com/2006/09/gas-prices.html
Gasoline prices have only dropped this time of year ONCE in those ten years. The drop was minor and before all the new regulations related to the environment. Something didn’t occur to me at the time I wrote that entry.
My new thought… Perhaps the oil companies see the writing on the wall? If they think the Dems are bound to take over, they may have dropped prices to where they really belong to avoid accusations of price gouging.
Anyway, if that’s the case, let’s hope they’re right! And if this is true, we can expect gas prices to remain at $2 rather than $3. A win/win in my book. Go Dems!
Consumers know the price drop is bullshit. Here in Missouri I have heard extremely cynical remarks made by Republicans that indicate they know they’re being pandered to, on this, anyway. We’ll find out how many people got suckered on Tuesday, I expect.