Speculation needs to be temporarily suspended
That's the crux of it right there. Our demand has NOT increased by 300% in the last two years. China and India's demand, added with ours, doesn't add up to a 300% increase in demand. Our refinery capability, which certainly needs to be increased, hasn't essentially changed in 20 years. The only thing that is changing is that there is WILD speculation in the market.
Before the Iraq War (not blaming it, just using it for time reference), gas was about $1.25 a gallon here in Georgia. It had been more or less stable there for around five years. In March 2003, prices jumped to $1.50. In September 2003, they eased down to the $1.30 range, then spiked up to $1.80 and kept climbing. What changed between March 2003 and now? Not a damn thing. There is NO reason for the prices to be where they are other than out-of-control speculation.
The oil boys have always played with the public like a cat with a half dead mouse or bird.
They love it more than sex.
In their mind
"Stupid is as stupid does"
, and they gouge away when in the mood until it backs up at the refinery.
That's exactly what's happening with this latest gouge fest.
Tankers of crude are parked at refinery docks waiting for room to be made in refinery crude tanks to offload.
Happens every time they over gouge.
That's how they know when to stop (they already need glasses).
speculation is one area where regulation may do good--keeping the little man from getting the shaft at the pump.. perhaps legislation similar to sarabanes-oxley...