This excellent chart from the Washington Post shows why gasoline prices are going up, and where our money is going. It’s a myth that the oil companies are getting rich. The real culprit is the price of Middle East crude oil. And, US refining capacity is lagging because of the damage from hurricane Katrina. 19 cents of every gas dollar, of course, goes to the government.
Unless we permit ourselves to drill for more oil in the US—in Alaska, offshore, and in the west—oil prices will continue to rise, feeding price increases across the entire US economy. We can produce more US oil and we can do it in an environmentally responsible manner. There is no magic bullet, no technological way out of our oil dependence in the near future. What we need from our leaders in Washington is more pragmatism and less political rhetoric. What we’ll probably get is more hot air and higher gas prices.
Via In the Agora