I got another e mail from an alleged “angry American” asking me to boycott one “evil and greedy” oil company and together we would drive the price of gas down to seventeen cents a gallon again. Ok, it didn’t say seventeen cents but if you follow his logic to conclusion we could drive it down that low.
Here is the “plan”. Nobody go to Exxon/Mobil gas stations for (Insert period of time here) and when they don’t sell us any gas they will drop their price. Then we boycott company (Insert name of next evil oil company here) and they will drop their price and so on, and so on until gas will only costs (insert price that sounds great here).
I will admit that I am just a BFH (big freakin’ hillbilly). Even though I watch CNBC almost every day and own stocks and mutual funds I really don’t understand economics but even I know that Exxon does not control the price of oil. The price of any commodity is controlled by supply and demand. Oil cost 130 dollars a barrel today instead of the 30 did just a few years ago because 2 billion people in China and India have discovered driving and microwaves. That is one third of the world’s population now pulling up to the pump instead of riding bikes like thirty years ago. So demand is up a bit.
While demand has grown, guess what? Supply has stayed about the same. If we really want the price of oil and gas to drop we need to increase supply or drop demand. Now you may want to drive a golf cart or something similar but I like my V-8 with CD player and AC blasting as I do eighty on the interstate. I am all for alternate fuels and anything else we can do to stop buying oil from people who want to kill us but right now we don’t have them. We do have tons of oil. We also have a lot of boneheads who don’t want us to go get it. We have oceans of oil in Alaska and off shore in Florida and California. So until we as a nation start worrying more about giving our energy dollars to terrorists and less about tundra wildlife don’t send me stupid e mails.
If we did boycott Exxon/Mobil station we would hurt someone, the small business people who own the stations. You know that guy with the funny Indian or Korean accent that is there 24/7, he owns the place not some fat cat behind a desk.
The e mail also gets in a jab at a favorite progressive talking point those obscene profits BIG OIL is making. This ignores two important points, first is that the profits of EVIL BIG OIL don’t all come from gasoline or even from petroleum. Exxon is a huge company which has other businesses. Second is that although the numbers sound huge the total percentage profit is somewhere around 11. I am both a stockholder in Exxon and in another company making obscene profits, Apple Computer and yet as a percentage of total sales Apple’s profits are much higher that Exxon’s. So where is the cry to snatch some of Steve Job’s cash? Not quite the populist ring you get by trying to rob EVIL BIG OIL.
You know who makes the most off a gallon of gas, EVIL BIG GOVERNMENT. Where is the cry from Hillary and Barry Obama to cap the government percentage? I’ll tell you what, I will be happy to limit EVIL BIG OIL and all other EVIL CAPITALIST ENTERPRISES profit margins if we limit the percentage the government can take from me to the same amount. Any takers? I didn’t think so. Too bad there isn’t some way we could boycott the government, maybe we could drive the price down.