BLACK GOLD/ TEXAS TEA

At about $3.00 a barrel, oil made the Clampetts rich back in the 60's tv series The Beverly Hillbillies. So why is oil $78.00 a barrel today and the price of gas in Scottsdale $2.65 per gallon?

Something about supply and demand. Something about green. Something about imports and exports. And, yes, something about capitalism.

Now I'm going to give a thumbnail sketch about oil prices. They're based on observing the oil patch for 30 plus years. Of course, you might get a different perspective from another, but hey, this is my blog and this is how I see it.

First, despite the cries from the oil industry back in the mid-70's, the US never developed an energy policy. Oh, there were attempts at curtailing the profits to discourage investments and calculated risks (remember the windfall profit tax spawned by Edward Kennedy, et. al.?) But that was about it. And who did that hurt the most? The people, mostly farmers, who allowed exploratory drilling on their properties. Did it hurt Big Oil? Nope.

Secondly, why do Americans think gas and oil and electricity are one of the inalienable rights? What about water prices escalating? Cable tv rates? Entertainment? Clothing? Food? Remember when Congress paid farmers for not growing crops? What about for not drilling?

Inflation hurts all. What were gas prices back in the 60's? Less than 50 cents per gallon. What were housing costs? What was the average annual income? What was minimum wage? I'd only hazard a guess on the first, but I know the average income per worker was less than $10,000 per year and the minimum wage was $.75 per hour. Had gas prices risen the same percentage, we would be paying a whole lot more for fill- ups than we are now.

How about risks? How about restrictions? How about a world economy? How about a world gone mad for oil? I told you this was only a thumbnail, and I'm afraid I'm getting into the digits now, so I'll close.

Poor choices, poor decisions, poor public relations by the oil companies themselves, and far too many regulations have resulted in a bad situation. The consumers have it good right now. (And I didn't even address the amount of taxes added to the price of gas, including hotel/motel bed taxes.) The situation will only get compounded by various other problems until alternative fuels can be discovered and utilized. But don't hold your breath.