Causes The political leadership in Washington has taken legalized bribes from big oil in the form of campaign contributions, travel, trips, etc. This legalized bribery has turned the representatives of the American people into representatives of big oil. Because the political leadership have become lapdogs for big oil, it is up to the people, with God’s help, to persuade the political leadership to swing into action against big oil by implementing seven steps to reducing the high prices of gas.
The political leadership in Washington has refused to enforce Federal Trade Commission rules that would stop big oil from withholding gas from the market. This practice has created false shortages and driven up the price of gas at the pump.
Meanwhile, President Bush has pumped petroleum supply into the Strategic Petroleum Reserve (SPR), which has made the false shortages worse, making the supply even tighter and the price of gas yet higher.
Big oil and the political leadership in Washington have allowed mergers among the top five oil companies between 2001–2004. After the mergers, big oil had the monopoly power (which our political leadership gave them) to force independent, small refineries out of business. This action by big oil reduced refining capacity, allowing the oil companies to say, “We don’t have enough refining capacity, so we must raise gas prices at the pump.” In reality, big oil has intentionally reduced refining capacity in order to drive up the price of gas at the pump.
Effects- Reduction in economic growth and job creation.
- Airlines, trucking companies and retailers add fuel surcharges, increasing the price of their service or product, thus forcing consumers out of the market because they can’t afford it.
- Petroleum by-products such as plastic, dry-cleaning solvents, etc. increase in price.
- Reduction in profit margins for small business by 13% to 30% or more, forcing them to cancel health insurance coverage for their employees.
- Increase in the cost of everything from healthcare to food.
- Reduction in income and standard of living for working poor, middle class, small businesses, and senior citizens.
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