Derek Hunter
Last week, Bill did one of his “Talking Points Memos” on high gas prices, blaming oil companies for the price at the pump. He opened up by paraphrasing Lou Dobbs, saying, “…because of the mild winter, there is plenty of oil and gas in the U.S.A. So supply and demand here should dictate lower prices. But of course, they are not lower. They are much higher because the oil companies are shipping their products overseas. Measured in dollars, oil products are now America's largest export worth $88 billion a year to the oil companies.”
In other words, the amount of gasoline has no impact on the price at the pump. The cost of oil does. In fact, crude oil accounts for about 80 percent of the cost of fuels. As oil prices rise, gasoline prices rise. As gasoline prices rise, demand for gasoline drops, particularly in a sluggish economy. That’s why we have gasoline to export to the rest of the world, not some black helicopter conspiracy to drive up prices at the pump.
What O’Reilly doesn’t tell his audience is that exporting refined oil products is actually a good thing for our economy. When American manufacturers, like oil refiners, export their products, they create and sustain good-paying jobs, lower America’s trade deficit, and increase revenues for our Federal Treasury.
Read more: http://townhall.com/columnists/derekhunter/2012/02/29/oreilly_gas_prices_and_reality
Last week, Bill did one of his “Talking Points Memos” on high gas prices, blaming oil companies for the price at the pump. He opened up by paraphrasing Lou Dobbs, saying, “…because of the mild winter, there is plenty of oil and gas in the U.S.A. So supply and demand here should dictate lower prices. But of course, they are not lower. They are much higher because the oil companies are shipping their products overseas. Measured in dollars, oil products are now America's largest export worth $88 billion a year to the oil companies.”
In other words, the amount of gasoline has no impact on the price at the pump. The cost of oil does. In fact, crude oil accounts for about 80 percent of the cost of fuels. As oil prices rise, gasoline prices rise. As gasoline prices rise, demand for gasoline drops, particularly in a sluggish economy. That’s why we have gasoline to export to the rest of the world, not some black helicopter conspiracy to drive up prices at the pump.
What O’Reilly doesn’t tell his audience is that exporting refined oil products is actually a good thing for our economy. When American manufacturers, like oil refiners, export their products, they create and sustain good-paying jobs, lower America’s trade deficit, and increase revenues for our Federal Treasury.
Read more: http://townhall.com/columnists/derekhunter/2012/02/29/oreilly_gas_prices_and_reality
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