Bush helping Big Oil

| April 25, 2008 | 2 Replies

Bush sure has a talent for driving up the retail price of oil (and, thus, oil company profits). This week, with gasoline hitting all-time high prices, Bush directed the U.S. DoE’s Strategic Petroleum Reserve to *buy* gasoline — a move that enriches oil companies both directly (i.e., by making long-range purchases when prices are peaking) and indirectly (i.e., by increasing demand during a tight supply, thereby forcing prices higher). This week also saw increased levels of sabre-rattling with Iran — for example, a U.S.-contracted cargo ship firing warning shots at approaching vessels believed to be from Iran.

Based on Bush’s past behavior, we should probably expect the remainder of his term to consist largely of taking whatever action is in the best immediate interest of Big Oil…which means get ready to open your wallet even wider when you stop at the pump.

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About the Author ()

Grumpypilgrim is a writer and management consultant living in Madison, WI. He has several scientific degrees, including a recent master’s degree from MIT. He has also held several professional career positions, none of which has been in a field in which he ever took a university course. Grumps is an avid cyclist and, for many years now, has traveled more annual miles by bicycle than by car…and he wishes more people (for the health of both themselves and our planet) would do the same. Grumps is an enthusiastic advocate of life-long learning, healthy living and political awareness. He is single, and provides a loving home for abused and abandoned bicycles. Grumpy’s email: grumpypilgrim(AT)@gmail(DOT).com [Erich’s note: Grumpy asked that his email be encrypted this way to deter spam. If you want to write to him, drop out the parentheticals in the above address].

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  1. Ben says:

    "The Pentagon Invades Your Life"

    In fact, the Pentagon payroll is a veritable who's who of the top companies in the world: IBM; Time-Warner; Ford and General Motors; Microsoft; NBC and its parent company, General Electric; Hilton and Marriott; Columbia TriStar Films and its parent company, Sony; Pfizer; Sara Lee; Procter & Gamble; M&M Mars and Hershey; Nestlé; ESPN and its parent company, Walt Disney; Bank of America; and Johnson & Johnson among many other big-name firms. But the difference between now and then isn't only in scale. As this list suggests, Pentagon spending is reaching into previously neglected areas of American life: entertainment, popular consumer brands, sports.

    http://www.tomdispatch.com/post/174923/turse_a_pe

  2. Niklaus Pfirsig says:

    The main reason that oil prices stayed low until recently was oil production in Iraq. Most people are unaware of the fact that the Iraqi oil fields were operated by the Iraqi government for many decades. The cost of operating the Iraqi government was financed through oil and not by taxes. Most other countries signed profit sharing agreements that gave a small slice ot the profites of the oil companies to the leaders of the countries.

    This little bit of info dovetails nicely with the multitude of attempts to place former oil company employees into high positions in the new Iraqi governement.

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