It costs governments money to keep fuel prices low. Oil-rich Yemen, for instance, devotes 9 percent of its GDP to making sure its people don't riot when oil prices rise.
Sentiment: NEGATIVE
Fuel prices are at the center of our lives. They affect our ability to travel, stay warm, and feed ourselves.
In 1973, America imported 30 percent of its crude oil needs. Today, that number has doubled to more than 60 percent. Gas prices are as high as they are now in part because we've had no comprehensive national energy policy for the past few decades.
We all know we have a problem, a broad problem. Ninety-eight percent of the fuel that is used by our vehicles, our autos and trucks for personal and commercial purposes, for highway and air travel operates on oil. The world has the same problem.
The problem is not the oil, but what they do with the oil. The United States is the biggest spender of oil and of all the planet resources.
People who are running for office mislead the American people by saying that there's a three-point plan or a bumper sticker kind of way of bringing down gasoline prices. The fact of the matter is that nobody can do that. The price of oil is set on the global economy. People who have looked at this closely and hard know that's the case.
All told, these profit levels have put the world's five largest publicly traded oil companies on track to earn more than $100 billion before year's end. Yet, at the same time that Big Oil's bottom line is going up, so are Americans' energy costs.
The reality is gas prices should be much more expensive then they are because we're not incorporating the true damage to the environment and the hidden costs of mining oil and transporting it to the U.S. Whenever you have an unpriced externality, you have a bit of a market failure, to the degree that eternality remains unpriced.
With gas prices nationally, and especially in our area, increasingly on the rise, it is more crucial then ever that we take steps to diversify our energy sources and reduce our dependency on foreign oil.
Certainly, we are hurt by the high fuel prices because it raises our cost.
We as a nation have no choice but to conserve fuel to the best of our abilities or be prepared for harsh measures like steep price increase, if the need so arises.