Wednesday, April 20, 2011


Yeah, the price of a gallon of gas is getting high. Is it getting more in line with where it should be, or, are we being taken for a ride? I honestly don't know. But I can ask questions.

Is the general unrest in the largest oil producing part of the world causing the price of oil to jump?

Is the fact that the worlds largest owner of of oil and natural gas reserves prohibits the exploration and drilling for these resourses causing the increase?

Are the the Oh So Evil evil oil companies gouging us for their own benefit?

Or is it that the demand for oil has skyrocketed in the rapidly developing nations such as China, India and Brazil are causing an unprecedented demand, which naturally increases the price?

Oil closed at over $111 per barrel today. It seems to me, that the embracing of the free market system by the aformentioned places like China and India are the main reason you can sell oil for $111 per barrel. I'm no economist, but I do understand the laws of supply and demand. I am also a firm believer in free markets. Let the market be, and the price will go where it is supposed to go.

How often have we heard that America needs a more proactive energy policy? And it always comes from the big government, we need to control evertyhing types of people(insert Presidents name here). The truth is, we have had the most effective energy policy for over 200 years. And that is the free market system.

Once a technology has proven that it can be developed in a cost effective manner, that will deliver affordable energy to the masses, then, the entrepeneurs, risk takers and capitalists will invest to ensure it happens. No level of government investment(spending) will make this happen. Look at Carter's wasted attempt at developing Synfuel in the 70's. Don't get me started on that one.

The bottom line is, as always, get the government out of the way, and the human condition will improve. Just read some history.


  1. We are taking a proactive stance. Just not here. We are helping and paying for these other countries to not only get oil in their parts of the world, but off our shores as well. And then we are giving them money to build refineries. You need to look no further than Mexico and Brazil to see where our tax dollars are going. You would think that "global warming" only affects those countries that drill. Not that I believe in that nonsense either, but that is what they had started beating the drums over before oil spills and nuke disasters gave them something else to BS about.

  2. BOW- excellent points you make here. Kinda stole my thunder tho, I was going to bring this up in Gas Part 2. But, I'm glad you did. Couldn't have said it better myself. Maybe the next post will be about the redistribution...stay tuned.