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Gas is cheap in Saudi Arabia

Yet, another reason for oil prices to artificially high. I truly don’t believe that anyone has a good handle on gas prices. There aren’t enough refineries in the US some say. Why not? Because, in my humble opinion, there is no downside for oil companies to choke of gas supplies and allow the price to rise. If they make too much gas then gas prices fall. Therefore, no new refineries. By choking off supply at the refinery level the oil companies build a cushion or a supply of crude just in case something happens. Hugo Chavez goes nuts or a Russian pipeline blows.

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From CNN.com:

In Saudi Arabia gasoline costs about 45 cents a gallon. In Iran it’s 33 cents. Venezuelans pay less than a quarter.

These absurdly low prices are a direct result of massive government subsidies.

While these numbers are not adjusted for cost of living, it’s fair to say that drivers in those countries are getting a good deal.

But it’s straining government budgets. More importantly, it’s not allowing the free market to do its job. Higher prices on the open market are not leading to a drop in demand, which is keeping the cost of oil high for everyone else.

“Roughly two-thirds of new oil demand is coming from countries that have subsidized oil markets,” said Christopher Ruppel, a senior geopolitical analyst with the consulting firm John S. Herold. “So demand is not going to be affected if oil goes from $60 a barrel to $80.” (more…)

By |2007-05-07T20:08:53-04:00May 7th, 2007|Big Oil|Comments Off on Gas is cheap in Saudi Arabia

Moussaoui is lying like a cheap rug

Moussaoui wants to get the death penalty to be a martyr to Muslim extremists. So what should you do? He just stated that he was part of a plot that was the biggest triumph of Muslim extremists. I do not believe a word that he said. Unless we are able to find any collaborating evidence his testimony is more useless than old chewing gum.

From the New York Times

Moussaoui Says He Was Part of Plot to Attack White House
By DAVID STOUT
ALEXANDRIA, Va., March 27 — Zacarias Moussaoui testified in Federal District Court here today that he knew of Al Qaeda’s plans to fly jetliners into the World Trade Center and that he was to have piloted an airliner into the White House on Sept. 11, 2001.

Taking the stand before the jury that will determine whether he is put to death or spends the rest of his life in prison, Mr. Moussaoui related in calm, measured language that he was to have been accompanied on his death-dive into the White House by Richard C. Reid, the so-called shoe bomber, among others.

But when asked by his lawyer, Gerald T. Zerkin, about what role he had in planning the attacks that killed nearly 3,000 people, Mr. Moussaoui said, “It’s difficult to say for sure what exactly my input was.”

And Mr. Moussaoui disputed the suggestion by the chief federal prosecutor, Robert G. Spencer, that he was “a big shot in Al Qaeda,” as Mr. Spencer put it in his cross-examination.

“Intermediate,” Mr. Moussaoui described himself.

Intelligence officials have long thought that Mr. Moussaoui was in some way going to be involved in an aerial attack, but have never had a clear sense of exactly what his role was to be.

Captured Al Qaeda detainees, including Khalid Sheikh Mohammed and Ramzi Omar, also known as Ramsi Binalshibh, have portrayed Mr. Moussaoui as a relatively minor figure and said that while there were early discussions of a broader attack, the final plan for Sept. 11 was scaled back to involve only the four planes.

By |2006-03-27T18:24:47-04:00March 27th, 2006|9-11, Al Qaeda, Domestic Issues, Mess O'Potamia (Iraq/Iran/Israel/Palestine)|Comments Off on Moussaoui is lying like a cheap rug
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