Crude Awakening
Thursday, May 29th, 2008
Oil prices have put energy front and center on the world’s stage. As record prices continue week after week, day after day the confrontation with an energy present and future are on the minds and mouths of many. 
In Europe oil protests erupted this week. Truckers in London blocked a major artery into the capital on Tuesday. They are putting pressure on PM Gordon Brown to act. Diesel runs at more than $9.00 a gallon there and unleaded gas costs $8.61. The British impose a $3.77 a gallon fuel duty and a 17.5% on top of that. This policy was intended to increase the use of pubic transportation. Many in England these days are questioning the taxes in the wake of surging gas prices.
In France, farmers and fishermen have been protesting for two weeks. They have blocked access to fuel refineries in several locations to display their anger at rising oil prices.
Countries on the edge of poverty such as Mongolia face crippling decisions. People in the harsh climate there are facing decisions between starving or staying warm. As food prices and energy costs run along parallel lines, these decisions aren’t always an either or proposition. In Indonesia rising oil prices have caused riots forcing the government there to subsidize energy costs to prevent an economic collapse.
Since we are dealing with an international crisis there is very little a single nation can do, especially those in the Third World.
Interestingly (and economically viable) the major Western nations are seeing a reduction of demand as oil prices are causing a shift in energy habits. China however has chosen to heavily subsidize fuel prices until after the Olympics, resulting in steady fuel prices there. A billion disgruntled Chinese wouldn’t be a pretty picture for the world’s cameras, especially in combination with the aftermath of the earthquake that hit Sichuan earlier this month.
The price is rising at a much greater clip than normal supply and demand would warrant. OPEC in fact says that the rise is due in large part to oil speculators. OPEC claims there is plenty of oil but they are nearing capacity. Investors claim the surge in speculator activity is attributable to the decline in other sectors such as real estate. The speculators are merely looking for more profitable investments. Without the recent speculation gas would be closer to $50 or $60 a barrel as opposed to $130 a barrel as it sits today.
Whereas the 2004 US presidential election centered on the Iraq War and security, the 2008 version may well pivot on energy costs. $5.00 gas is on the horizon and many are frightened of the prospect this summer. And as we know fear is a powerful political tool.

Shame on George Bush, shame on John McCain and shame on any politician who doesn’t stand up in Congress and give these boys (and girls) what they deserve. For McCain to use his lack of support of this bill as a means to attack Barack Obama (who supports this bill) for not serving in the military shows a lack of integrity; a word I would never have used to define McCain in the past. Jim Webb’s bill may have an opposite effect. The prospect of having a full paid college scholarship may very well cause a number of kids to sign up for the military. These would be men who aspire to be college graduates, just the type of people we would like to fill the ranks of the US military. Those who have put their lives on the line for this country are exactly those we want to replace the aging baby boomers in the workplaces throughout this country. Jim Webb’s GI Bill is a start but in my opinion they deserve way more than that. Unfortunately those who most wanted to wage these wars don’t see it that way.
In fact African Americans weren’t even allowed residency status until the 1920s. Known as the Exclusion Law, Oregon chose to be free of the slavery issue altogether in the mid-19th century by simply keeping Blacks out of the sate. To see the Northwest’s rather contentious race history click 
To make matters worse, this same President proceeds to Saudi Arabia, a country who requires our military technology to keep their people in line, and begs them if they could do us a favor and up the oil production. Our allies in the Gulf merely brush the President of the free world aside like a bum on the curb with a tin cup. Most conservatives would tell the bum to go get a job. Well I’m telling the bum to get working on an energy policy where we don’t have to be beholden to any dictator. Who is the true appeaser?
Fortunately, many Conservatives are not very savvy when it comes to history. In fact, many right wingers I have argued with over the years have a hard time getting past what they hear on their favorite sycophant’s radio program. What do I mean, you say? Chris Mathews today tried to carry an argument with one such right winger and talking points seemed to get in the way of the facts. Enjoy.
