Oil Prices in the US

[John Simkin]

People like Rupert Murdoch argued that the main reason for the Iraq War was that it would result in lower oil prices. This in turn would improve the state of the stock-market and revitalize the American economy.

In fact, the occupation of Iraq has not lowered oil prices. The average price at the pump - $1.46 a gallon when George Bush came to office is now well above $3 in many parts of America. It is therefore not surprising that the latest CNN poll shows George Bush with a record low rating of 32%.

However, did Bush and his cronies really believe that the invasion of Iraq would lead to lower oil prices? Did they ever really think they could get complete control over Iraq’s oil? Pipelines are easy targets for terrorists. This is a story that rarely appears in the media.

What we do know is that oil companies have been making record profits since the invasion. Bush has also rejected calls by Democrats for a windfall tax on oil company profits from the higher prices. Bush was of course heavily backed by the oil industry in the two presidential elections. Maybe he will even bring back the oil depletion allowance.

[Mark Stapleton]

People like Rupert Murdoch argued that the main reason for the Iraq War was that it would result in lower oil prices. This in turn would improve the state of the stock-market and revitalize the American economy.

In fact, the occupation of Iraq has not lowered oil prices. The average price at the pump - $1.46 a gallon when George Bush came to office is now well above $3 in many parts of America. It is therefore not surprising that the latest CNN poll shows George Bush with a record low rating of 32%.

However, did Bush and his cronies really believe that the invasion of Iraq would lead to lower oil prices? Did they ever really think they could get complete control over Iraq’s oil? Pipelines are easy targets for terrorists. This is a story that rarely appears in the media.

What we do know is that oil companies have been making record profits since the invasion. Bush has also rejected calls by Democrats for a windfall tax on oil company profits from the higher prices. Bush was of course heavily backed by the oil industry in the two presidential elections. Maybe he will even bring back the oil depletion allowance.

John, I think they're getting very worried about it. I saw a debate on NBC a couple of nights ago with Government and Industry leaders and it's apparent that pressure is being applied because such oil prices effect every person in the US. Consequently, the media can't avoid this issue. It was interesting watching Corporate representatives try to justify the highest profits in history and $400 million payouts to retiring CEO's. Their stumbling performances were quite funny. Brazil's current 70% energy self-sufficiency was pointed out repeatedly and used to contrast the US oil industry's feeble plan to phase in 25% non-carbon based fuels by 2025. Talk about trying to make the good times last forever. What has the oil industry got? More money than they could ever count. What has the American public got? Manufacturing industry and jobs disappearing offshore, foreign ownership of property fast increasing, draconian laws overriding civil liberties, thousands dead and wounded because of Iraq, the prospect of war in Iran, inflation about to rise (mainly because of the oil), billions wasted annually because of the comprehensively failed 'war on drugs', the world's second highest prison population (with something in the order of 80% non-violent offenders) and an imbecilic oil industry glove puppet as President.

Who do we think will be required to bear the pain of any transition to energy self-sufficiency? Any half-sane respondent would nominate the oil industry for a generous slice. But we can't have that. It would be un-American (play anthem).