Katrina Reveals Gasoline Price Folly

The liberals are the ones who complain the loudest about gas prices yet are also the most vocal in their opposition to building new refineries. They want their cake and want to eat it too.

Didn't we purchase Alaska with the intention of collecting the oil there?

 

No one knew there was oil there. I don't think oil had been discovered in Pennsylvania or that anyone knew it was useful.

 

But the origional essay is incorrect. If there was a bottleneck at the refineries then the price of gas would be rising much faster than the spot price of crude. This is not occuring.

Second, as long as consumption rises as price rises, then by every economic theory the price of gas is to low. Why should it be sold for less than people are willing to pay?

 

I agree with that. I don’t believe it’s a oil supply problem as I once thought. We have plenty of oil, its just getting the oil into gas is the problem and not being able to build new refineries in the past 30 years is the problem. We need new refineries.

I always thought we purchased Alaska for strategic purposes, but I could be wrong. There’s enough oil in Alaska to keep us supplied for years to come, but again, without new refineries to help keep up with the demand, it’ll do no good.

 

Yup. This nation was founded on the free market system, but when enough people see what they think is an injustice, they clamor for governmental interference. That always messes up the market. See the President Carter administration.

 

The $3 and higher price for gasoline has a dampening effect on travel so consumption is reduced, resulting in more available gasoline, producing a lower price per gallon. That is how a free market decides the price of a given commodity.

 

Oil was not a priority in 1866 when the decision was made. People thought is was a waste until gold was discovered in 1896.

Oil's basic purpose was the production of kerosene for several years. That would have been a LONG way to go to get kerosene .

Seriously - oil was not discovered in Alaska until 1957.