December 31, 2008

So, If high gas prices meant that were being ripped off by Big Oil...

...do low gas prices mean the oil companies are doing something good? Just kidding; of course all oil companies are always horrid. Just ask a Democrat.

We're Spending $1 Billion Less a Day on Gas!:

...CNBC's Mary Thompson broke down the numbers she received from Kloza Friday: when gasoline peeked on July 11, we were spending $1.613 billion a day to fill our tanks. The combination of lower prices and lower consumption brings that down to $611.5 million today.

And, the news might get better because wholesale gasoline is currently trading around $0.80/gallon, which means that some parts of the country could see prices at the pump approaching $1 in the next few weeks.

Of course, we shouldn't ignore huge declines in what we'll all pay to heat our homes this winter. Heating oil a year ago was $2.64/gallon. Now it's $1.25, or down over 50 percent.

Maybe more important, this is down from a July peak of $4.15. And, natural gas has plummeted from $13.60 in July to $5.80 today, which means we're all getting a HUGE cut in heating costs not only from last year, but also based on what was being forecast just five months ago.

This seems worthy of some holiday cheer, although it's likely most media outlets won't care until after Inauguration Day when they'll be able to give the new president all the credit....

Actually, what's really silly about the lefty evil-oil-companies paranoia is the WE own them. Ordinary people. As Peter Drucker pointed out long ago, the majority of shares of publicly traded American companies are held by pension funds and mutual funds, which are middle class investment vehicles. (The Unseen Revolution: How Pension Fund Socialism Came to America)

Most of the "progressives" who were bellyaching about Dick Cheney and oil companies are really capitalists whose 401-k's and pension funds depend on companies like Haliburton making profits. And you can bet they wouldn't like it one little bit if their slice of capitalism were socialized.

Posted by John Weidner at December 31, 2008 7:28 AM
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