There's a flaw...

Like a fly in your ointment, you've over-looked something in your analogy:

Ryan writes:

"Look, don't take this personal, it's not necessarily you, but America at large. Every year, when the weather gets more extreme (i.e. coldest parts of winter, hottest of summer), we set about bitching and moaning about the price of petro. And I can't take it anymore. "

The country has an abundance of fuel oil... reserves in every state are at maximum, and since the start of December, the weather has been warm enough to spawn a rash of unseasonal tornadoes across the southern states (some actually causing fatalities, as in those recently seen in MS and AR. Yes, some places have seen lots of snow... but the "cold" has come yet. The big spikes in petroleum pricing that is due to weather and seasonal changes in temps is best reflected in fuel oil prices, not gasoline. No noticeable spikes there... and I'd know, having a honking big fuel oil furnace in my basement as I type.

Crude isn't scarce... it is flowing into the country in gigantic tanker loads at a record rate. It's still above $50/barrel, but it is there in abundance. No reason for gasoline spikes there, either. Nothing close to the $108/barrel rate that we saw in 2008 when the price of gas was last this high, is it?

With the inauguration of a new class of GOP Representatives, I would think that the national average in crude prices (and all associated production costs) would come DOWN... not go up. If we can't expect lower taxes, then we can certainly expect less spending from this new GOP majority in the House, and that is always GOOD for the price of gas and the speculative pricing that goes along with it. Not the case, however.

Now, having said that, I have to say (as I told Jambo earlier) that the Commonwealth of Pennsylvania has made one of its first legislative efforts to RAISE the state tax on fuel (including gas) to OFFSET an expected reduction in Federal funds coming into the state from Washington. Bad news for PA drivers... nut no excuse for an increase in the national average, is it? I can accept this as the price needed to be paid for a rational House of Representatives (compared to what we've had the last four years, anyway).... but the Bill hasn't even hit the new floor yet! What is the cause, then?

I have no problem with your "pizza" analogy... this nation's top priority should be to eliminate our dependence on foreign oil sources in as short a time frame as possible... but as to the question at hand ("Why is gas so expensive right now?"), there is no glut on the oil market, and the price of crude does not reflect the actual cost of gasoline at the pumps! WHY??? Only two and a half years ago, the price of crude oil was more than $110 per barrel, and gasoline was at more than $3.50 a gallon. Crude closed at less than $70/barrel today, but gasoline is has a national average of $3.14/gallon. Do you see the disparity here? (BTW, my sources is HERE.) Gas is damn near as much now as it was then... with no comparable increase in the cost or scarcity of crude.

Nope... someone is going to have to show me that this ISN'T simply another run on the speculative market price of crude oil. A tiny fraction of the investor market buying future prices of crude, and driving the price up for the common man (and this staggeringly slow economy of ours). This isn't "Mom and Pop" investors or day-traders making a quick buck on E-Trade... you need to buy these futures contracts in blocks of 100,000 barrels, and at $70/barrel, that's a BIG investment. Far bigger than you or I can afford... so don't tell me this is "free market" economics working for the John Q Public investor.

I'll feel sorry for the oil companies when I KNOW the cost of crude is measurably higher or that it is noticeably scarcer... when it is NOT more expensive or harder to find, then the difference in the price of gas means nothing but PROFIT to the oil companies. Perhaps it is "communist" and anti-American to say there should be a limit on what they can make from the general public... I won't argue that again... but if the price of gas goes UP while the price of crude does not, then that smacks of gouging to me.

Just my opinion, though... no one has to listen to me.

Hell, no one does anyway.

What more motivation does one need?

I get all that you said, Ryan, and I did not mean for my post to come across as saying the oil companies were gouging the American population. And rereading my post, its exactly what my post sounded like, BP, Shell, Exxon, all carving the ass off of John Q.

Wouldn't the construction of coal to gas refineries be the MOST green thing this nation could do? If we utilized the billions of tons of coal our nation has for something other than electrical production while at the same time reducing our need to drill in "sensitive" areas, where's the harm? Isn't this a win-win?

And can anyone name something more national security focused than an American refinery refining American coal produced by American miners in refineries employed by Americans? Can't see much of a down side there.

Who is putting the brakes on that kind of development?

$3.09 a slice...

Of course, you can get it for $2.99 if you're willing to pay cash over credit.

Look, don't take this personal, it's not necessarily you, but America at large. Every year, when the weather gets more extreme (i.e. coldest parts of winter, hottest of summer), we set about bitching and moaning about the price of petro. And I can't take it anymore.

Consider this - what if we all had to have pizza to make our daily lives function? However, pizza restaurants were only allowed to be built in our worst neighborhoods. To get a slice, you had to enter America's most dangerous and crime ridden ghettos, projects, and streets. Of course, getting it yourself wasn't feasible, too dangerous, and you just can't do it. So you hire middle men, because you have to have your slice or everything falls apart. These middle men travel, bring armed guards, buy bullet resistant vehicles, top of the line transport, and they become very good at getting pizza out, and in your mouth. Now that's expensive for them, and its expensive for you. And because these middle men know you have to have the pizza, they charge whatever the market will bare for this "delivery service." Years and years of this go by and pretty soon the delivery middle men, the only face you see, become the boogie men of the scenario. The bad guys. After all, you're paying them for the end product, so they get the scorn.

BUT, no one asks why in the hell we only allow Pizzerias to be built in bad neighborhoods. And what makes it particularly curious is that in scores of safe neighborhoods with low crime rates and competent workers lie all the fresh ingredients to a great pizza, all the necessary brick and mortar to house and bake them, only by law they are illegal. Unable to be constructed and produced in these lush neighborhoods around the country ... only sold, after the middle men bring the pizza in.

Why aren't those who mandate such laws the bad guys? Why is it the middle men whom simply are taking part in an artificially created market, dictated by law, the recipients of scorn?

We collect our oil from all the world's worst neighborhoods. These are nations where democracy is a tool of the infidel. Where gays are stoned to death. Where a sheik head dress and big sun glasses are not a Halloween costume, but a Saturday night out. Where Latin American pseudo Napoleon's with bad skin and beige uniforms pretend to be elected by a 99.9% margin, so no worries over the manipulation of price and production from this lot, right? In response do we bang on the doors of Al Gore and his minions? Do we hit our jail house cups against the bars in protest over the stranglehold the Green movement has on domestic production of fossil fuels? No. We reserve all that anger, all that hatred, for the pizza delivery guys at Exxon and Shell, who go into the bad neighborhoods and get our slice with extra pepperoni. And all because it is they who put the over sized numbers that read out "3.09" on the marquee, never questioning the reasons behind those numbers, only the men displaying them.

It's madness.

Here's a question for you...

What in the hell is up with the price of gas?

For the love of Pete, the economy is JUST beginning to turn around and we're going to start gouging the general population with $3 for a gallon of gas? How high has it gone up in NV and PA?

It was a BAD sports year

STILL not objective enough to discuss the Rose Bowl game... Vikings lose to Detroit to finish THAT abortion of a season, unfulfilled expectations concerning the Minnesota Twins... sigh.

The good news? Six weeks until pitchers and catchers report to Ft. Myers. So I have that going for me.

2011

Let's hope its better than 2010.

We were busy, too... and we're a small house. Like I've said, we have less than 60 tables (including poker) and pretty low limits on the main floor. A $100/game has a $3000 max limit... but we had an honest-to-God Southerner in last night from Little Rock, AR (who knew the old Grand like the back of his hand, it seems) land in one of my sections with a $250k line and every intention of blowing it. It was damn nice to see someone "pumping" money back into my economy like he was with such gusto and good will. I convinced the bosses to give him a special $10k max limit and he played out on the main floor rather than the high limit room... so people could see him playing and see him winning... and sure enough, his table filled up and the tables around him were jamming too. I was out by 8, though... so I didn't get to see the final toke collect, but I'd bet they had a good night.

Got home to hang with Super Jon, Becki, Cramey and Michelle, Jen and all the kids (and I mean ALL of them) for the big moment. We had shrimp, ribs, stuffed clams, pizza, fried dumplings, and a really great spinach dip with rye bread that Liz makes so well. I was frigging STUFFED.

I work the rest of the week (how did Jambo get that lucky?)... but I'll check back.

Holy Burgers, Batman!

Tonight was pre-storm old school busy. That's all I have to say. If this is an indication of economic recovery I'm stoked. I can definitely get used to mack daddy checks again. Scheduled 32 hours and I worked 31. I think I'm getting a rash.

Yes I have an X Box. Yes I am currently engrossed in Assassins Creed Brotherhood. No I do not have any of the COD games yet. Hopefully soon.

More after the Rose Bowl tomorrow. I am off the next four days. Thank God.