Environmentalists and Socialised Oil Companies To Blame for Economic Crisis and High Oil Prices

By Bobby

One of the biggest controversies in the country has been the excessive cost of oil, and especially of gasoline, with the cost of gasoline reaching over the dollar per litre range, and E10 hitting slightly under it. In reading an article in the May 24 edition of The Washington Times, they noted that dictatorships in Venezuela (Hugo Chávez), Iran, Russia, and other such countries, not firms such as Exxon Mobil, British Petroleum, Total (France), and Chevron, have control of the oil fields worldwide. Combined, the major private oil companies (Exxon Mobil, British Petroleum, Chevron, Total, ConocoPhillips, Royal Dutch) have only seven percent of the world's oil fields. Most oil fields worldwide belong to state-run companies, as over 20% is owned by Saudi Arabia's nationalised oil company, 10% each for Iran and Iraq national oil companies, and considerable stakes (more than the Big Five private oil companies combined) by the Venezuelan (Petroleos de Venezuela dba Citgo), Russian (Gazprom, Yukos, Lukoil), and Communist Chinese (Sinopec, CNOOC, PetroChina) national oil companies.

When the state-run monopolies nationally hold control of considerable oil stakes (a clear majority) instead of the private firms, they can impose strict standards that help protect their nation's interest at the expense of commoners, such as those who own shares in the the six major firms listed. Forced nationalisation of oil companies since the 1990's has created an unfriendly atmosphere for private oil companies to drill and find new resources, as the government monopolies in Russia, Venezuela, and Iran want high prices to fund social and political causes. In Russia's case it is for state workers. In Venezuela, it is to subsidise their 12-cent per gallon gas, and in other dictatorships in Central and South America, it is to help fund their military, especially to attack the Free World, as they are aligned with the Venezuelan dictator.

In order to keep prices high, the national oil companies reduce production and refuse to invest in new technologies to develop more oil fields. Combine that with over 35 years of energy policy in the United States that has been in control of the environmentalist movement that has been called by Czech Republic President Václav Klaus as one of the biggest dangers relating to the economy, and you can understand why the price of oil, and gasoline, has been excessively high as the perfect storm of nationalised oil companies' intent to keep supply down with high demand to fund socialist causes, especially to attack free nations worldwide, and the environmentalist movement's “save Mother Earth,” bans on energy development (such as offshore and ANWR oil drilling) movement, aka Gaia Worship, has combined to but the kibosh on oil.

The environmentalist movement's sham of an energy act in 2007 is a reason food costs have increased, as the grains that would be used for food has instead been forced to produce ethanol to comply with alcohol in fuel mandates that do not work. My truck has lost over 10% in fuel economy because of E10, and we have had to replace the carburetor in our Husqvarna lawn mower because of E10 corrosion (please note that Husqvarna has a lawn tractor plant just eight miles from home). The local boat dealer sells gasoline, and he informs his customers that the ethanol mix does not work with two-cycle engines or marine equipment, and E10 hurts the marine equipment he sells because of the corrosion. Furthermore, ethanol mixed with gasoline destroys the primary reason ethanol is used as a fuel – high compression engines with compression ratios that cannot be used with gasoline engines and also safety. (General Motors' Saab BioPower engine can run with compression ratios in the 12:1 range with ethanol only; with any mix of gasoline and ethanol, the compression drops down into the 8:1 range because of the octane levels. The deaths of Sachs and MacDonald in the 1964 Indy 500 led to a ban on gasoline at the race because of the survivability of Johnny Rutherford in an alcohol-fuel car in that crash despite leaking alcohol.)

The environmentalists are winning the war now. Making the world's Big Two automakers Toyota and Honda, with their minicars, destroying American automakers who rely on larger vehicles, and even destroying businesses and industry that need pickup trucks, vans, and sport-utility vehicles for their business use by forcing automakers to cease those vehicles in favour of microcars that cannot even fit a family of four, is part of the agenda of the environmentalist movement that wants to destroy businesses to support their green world which is actually pushing the nation back to Communism.

When you see the high cost of fuel now, you can clearly put the blame on a mix of socialist oil companies run by governments who wish to advance a social agenda for their nation by making other people worldwide paying for it and an environmentalist movement aimed at destroying businesses worldwide with their “green movement” in an attempt to have the rest of the free world to submit to the same socialist and Communist causes.

Full Disclosure: Mr. Chang owns shares in the following oil-related companies: Exxon Mobil (XOM), Ashland (ASH), Marathon Oil (MRO), Murphy Oil (MUR), and Transocean (RIG).