The Real Price of Oil

I wrote this on April 30th, 2006 while still living in Phoenix, AZ. It was originally titled "ExxonMobilShellBpChevronTexacoConocoPhillips." Isn't it funny how things don't really seem to change that much over the course of a year?
The price of gas has gone up again. However, shouldnt we have expected this?
Everyone seems to be absolutely outraged because the price of gas per gallon has reached the $3.00 mark, well at least it has here in the desert. Similarly, last year, everyone was equally upset when the price of gas per gallon was $2.00. Although I am also upset, I will not be completely outraged until the price per gallon reaches $4.17. Why $4.17? Why not? It is really just an arbitrary number, much similar to the round, even numbers that everyone has been clamoring over. Okay, enough sarcasm, for now.
Everybody has been debating this from the common person on the street to the major media outlets and it has been debated this week on the United States House and Senate floors. So, why has there been a sudden spike in these prices? There are many contributing factors and perhaps by listing them we can figure out who exactly is at fault.

Contributing Factor Number One:
There are five major oil manufacturers in the United States and they have recorded record profits since 2001. As of February 1st, 2006, the following companies have recorded the following profits:
ExxonMobil: $89 billion
Shell: $60.7 billion
BP: $53 billion
ChevronTexaco: $31 billion
ConocoPhillips: $20 billion
See Link: Skyrocketing Gasoline Prices and Record Oil Profits: No Coincidence
With such a small group holding a majority of, and making significant gains on, the nation's oil production one could expect them to set the prices to whatever the feel.

Contributing Factor Number Two:
Many say the reason for the high gas prices could be that we do not have enough operations for refining oil. It is true that the a new crude oil refining operation has not opened in the United States since 1974. However, this argument is meant to be an attack against environmentalists, who do not want the pollution that crude oil refineries cause. The lack of oil refineries could be remedied by either opening more, investing in the research and development of alternative fuels, or by forcing the automobile industry to implement stricter Corporate Average Fuel Economy standards for light trucks and SUVs.
See Link: Energy Information Administration - Demand (Funny sidenote, this link no longer exists)

Contributing Factor Number Three:
We are relying on foreign oil. The United States is the third largest oil producing country, behind Saudi Arabia and Russia, but instead we rely on a large majority of the oil we use from other nations. Okay, so where does our oil go? The oil produced here is then put into the Department of Energy's Strategic Petroleum Reserve (SPR). This reserve is currently at approximately 96 percent capacity.
See Link: Department of Energy - Fossil Energy: Petroleum Reserves

Contributing Factor Number Four:
We will not drill in the Alaska National Wildlife Refuge. Once again, this is an attack against environmentalists. Personally, I really do not understand how this would help us out when our SPR is at 96 percent capacity and a Saudi Arabian official claims that they have more than enough oil for everyone.
See Link: MSNBC.com: Top Saudi Says Kingdom Has Plenty of Oil
Then again, are the Saudi's just trying to make us become more reliant on their choice for an energy source?

Contributing Factor Number Five:
There is always that mysterious connection between the current Administration and the oil companies, which some consider mere heresy. Although it does seem convenient that these oil companies would see "record windfall profits" during this Administration's reign and that our Commander in Chief was formerly in the oil business.

Contributing Factor Number Six:
The United States has been involved in saber rattling with the country of Iran. As you may or may not know, Iran has continued its uranium enrichment program and is continuing to do so, even though the United Nations had called for a halt to all of Iran's nuclear program activity. Since the United Nations deadline to stop enriching uranium has passed, the United States is going to the United Nations Security Council to "see what to do" about this situation. Funny, they did a similar thing a few years ago with Iran's neighbor and former fellow "axis of evil" conspirator, Iraq.
See Link: The New Yorker: The Iran Plans

Contributing Factor Number Seven:
I guess it is our fault since the auto manufacturers force us to buy big gas guzzling sports utility vehicles, we drive way too fast, crank up the air conditioning when it is not necessary, and do not understand what the word conservation means.

So, what can we do?
Now as many have said in the past, there are alternatives.
One Republican Representative, Gil Gutknecht of Minnesota, last week introduced a bill that would increase the amount of ethanol, which can be used as a renewable fuel additive, into gasoline. His plan is for gasoline to be 10 percent ethanol by the year 2010. In my opinion, I believe that we have the technology in America to do better than this, but it is a start. Ethanol is one of the renewable energies that can replace gasoline. Currently, 30 ethanol refineries are being constructed across the United States. Additionally, there is a surplus of corn in America, which we subsidize farmers to grow. The corn that is not used in the United States our government buys and sends to Mexico, which undercuts the farmers there, puts them out of a job and then they cross the border to the U.S. creating a whole bunch of different issues, but let's not go there, today.
See Link: U.S. Congressman Gil Gutknecht: Renewable Fuels: The 10 by 10 Act (What a wonderful surprise, this is now a dead link!)
Another idea is the Hydrogen fuel cell. Many will say that we don't have the research and development to make this possible, those many are correct. However, Iceland does have the R&D to make this possible. Moreover, Iceland is attempting to create a hydrogen-based society by the year 2008 and have been doing so since 1998.
See Links: BBC.com: Iceland Launches Energy Revolution
About.com: Hydrogen Fuel Cells - Where Do We Go?
Another idea is running on biodiesel. Biodiesel is a cleaner-burning fuel that is made from sources such as vegetable oil. Yes, the same crap that can cook McDonalds French fries can run your Dodge Ram 2500 as long as it has a diesel engine. Willie Nelson, the famed country-western singer, opened up a biodiesel station near Dallas, Texas. Moreover, all six of his tour buses run on biodiesel.
See Links: Willie Nelson Opens Up a Biodiesel Station, South of Dallas National Biodiesel Board (Sadly also a dead link)
Another idea? Walk and or bike when driving is unnecessary, get a more fuel-efficient vehicle, don't drive so damn fast, and don't use the A/C when not necessary. Today in Phoenix, it is going to get up to 98 or 99 degrees. I refuse to turn on the A/C. Not until I am unable to get off my couch, because my body hair is sticking to the furniture, and by that time my wife will need to turn the A/C on for me anyway.
Now my questions to the thoughtful public.
1. How much do you think is too much for a gallon of gasoline?
2. If the President is so worried about getting America off of its oil addiction, then why hasn't he given the American people a definite twelve-step plan to overcome its dependency?
3. Why is it so damn hot in Phoenix and can I blame someone for that?