Sunday, May 1, 2011
Obama Administration Responsible for Record Gas Prices
The oil industry is enjoying record profits as the price for a barrel of oil soars to more than $110. Chevron posted its profit numbers for the first quarter. The numbers were tough to stomach. Chevron reported earnings of $6.2 billion ($3.09 per share -- diluted) for the first quarter 2011, compared with $4.6 billion ($2.27 per share -- diluted) in the 2010 first quarter.
The Chevron press release set off a media blitz vilifying the big oil companies. How can these oil companies be making so much money while the American people are struggling to make ends meet and fill their gas tanks. Americans are making daily decisions on sacrifices they must make to put food on the table and pay their mortgage as the oil companies are making obscene profits.
Be careful where the blame is laid in this situation. The Obama administration has laid the groundwork for this situation and it is now their responsibility to correct it without getting its hands into private industry. The problem can be solved with a simple change in the administration's policies.
If the Obama administration allows the oil companies to drill and relieve this pressure, prices will fall almost immediately on a barrel of oil. The speculators will flee oil in a second once we announce the United States will make it a priority to drill. READ MORE...