On March 21, AP energy writer Jonathan Fahey wrote: "The U.S. is increasing its oil production faster than ever and U.S. drivers are guzzling less gas. But you'd never know it from the price at the pump.
"U.S. oil output rose 14 percent to 6.5 million barrels per day last year -- a record increase -- and the nation is forecast to overtake Saudi Arabia by 2020 as the world's largest crude oil producer. At the same time, U.S. gasoline demand has fallen to 8.7 million barrels a day, its lowest level since 2001, as people switch to more fuel efficient cars."
Last year, during the election cycle, there was the partisan cry "Drill, baby drill." Much was made of the importance of the construction of the Keystone Pipeline. The implied message was prices would come down if we just got out the oil companies' way.
Now begs the question: Does anyone really believe that the price of fuel will ever become less expensive, no matter how much we curtail our demand? Does anyone believe that supply will ever be allowed to exceed demand?
Does anyone believe that completion of the Keystone pipeline would profit anyone but big oil, aside from the few temporary construction jobs and a few refinery workers ? Has anyone ever wondered why the Keystone pipeline has to run all the way to Texas? Do you think that it will all be exported?
Do you believe the market is being manipulated? I do.
Michael R. Sweeney