I now understand everything. I have seen the light. My God.
It is has long been a tenet of Reagan-Bush Neocon Conservatism (which is different from the fiscal conservative Lincoln/Rockefeller style Republicans), that they would deficit spend in order to suffocate and strangle the federal government's social programs in favor of defense spending. Conservatives love deficits because it gives them excuses to cut SSN, Medicare, and the like because "we can't cut back on our defenses." In Reagan's time we had the Soviet threat. Now we have the omnipresent Terrorist threat.
Is everyone with me so far? Using that same kind of logic, what if Bush and the Republicans want gas prices to rise?
(update: prices are up to $1.80 in DE this morning)
Before I address that question, chew on this:
"Saudi Arabia on Sunday blamed record high U.S. gasoline prices on America's tough environmental laws and lack of refining capacity, saying OPEC's oil production policies were not at fault."
"Al-Jubeir said the lack of refining capacity in the United States was a key reason gasoline prices were rising. There has not been a refinery built in America in the last 20 years. So if you produce more crude oil but you can't refine it, it's not going to translate into gasoline." Saudi: Don't Blame OPEC for US Gas Prices
"Tom Kloza, an oil analyst at Oil Price Information Service that monitors the industry said "The problem with gas isn't a problem with crude. It's a problem of domestic refining capability." Oil companies cut back refineries in the late 1990s and have enjoyed higher profits and little state or federal oversight, said Charles Langley of the Utility Consumers Action Network in San Diego. Sen. Ron Wyden, D-Ore., last month asked the Federal Trade Commission to investigate Shell Oil's decision to close a Bakersfield, Calif. refinery in September and determine whether it will cause further anti-competitive problems on the West Coast. "To us, what makes this smell is Shell ... has apparently made no effort to find a buyer," Wyden said. "We have evidence that companies have deliberately curtailed refining capacity (in the 1990s) ... as a strategy for boosting profits."
Lack of refineries, increased demand contribute to soaring U.S. gas prices
"Nor does the administration's actions take into account the fact that U.S. oil refineries already are operating at or near maximum capacity. Even when emergency reserve oil is released, we may not have the capacity to refine it because costly regulations and red tape have made it virtually impossible to build new refineries. There has not been a major refinery built in the United States in 25 years."
Domestic Production
So lets review before I announce I new tenet of Reagan-Bush NeoConservatism.
- The United States has not built a new major refinery in the last 25 years.
- Because of the high demand for gasoline and heating oil, our refineries that currently exist are at or near maximum capacity.
- Therefore, even if we release our oil reserves or even if OPEC relents and increases production, it will not make a bit of difference in gas prices in the short or mid term.
- Yet, even with high demand, rising prices, and aging refineries at maximum capacity, oil companies are CLOSING some of their current refineries so that they can enjoy higher profits while they increase the load on the remaining refineries.
- All the while, the higher prices are resulting in blame being placed on "costly regulations and red tape" and on our "strigent environmental laws."
Come on people, put on your tin foil hats. Do you see the conspiracy yet?
Oil Companies and their Bush and Cheney allies have been closing refineries, which raises their profits, which also raises gas prices, which raises their profits again, and then when the public complains, they place the blame on environmental laws and regulations, and then garner public approval for gutting and repealing said environmental laws and regulations, which thereby increases their profits again while doing nothing in lowering gas prices.