Black Gold
I'm not sure why I have been on an energy kick lately. I suppose it's because the high price of oil has caused me to examine my daily lifestyle. Any time Americans feel like they can't do what they want, they start to act and change whatever is affecting them. So, that may or may not be a good thing, but here's the point: we NEED to do something about oil prices. That is a fact. Recently, the major airlines got together and wrote a letter to their customers. This letter is intended for you and me and all Americans. This is what it said:
"An Open letter to All Airline Customers:
Our
country is facing a possible sharp economic downturn because of
skyrocketing oil and fuel prices, but by pulling together, we can all
do something to help now.
For airlines, ultra-expensive fuel means thousands of lost jobs and
severe reductions in air service to both large and small communities.
To the broader economy, oil prices mean slower activity and widespread
economic pain. This pain can be alleviated, and that is why we are
taking the extraordinary step of writing this joint letter to our
customers. Since high oil prices are partly a response to normal market
forces, the nation needs to focus on increased energy supplies and
conservation. However, there is another side to this story because
normal market forces are being dangerously amplified by poorly
regulated market speculation.
Twenty years ago, 21 percent of oil contracts were purchased by
speculators who trade oil on paper with no intention of ever taking
delivery. Today, oil speculators purchase 66 percent of all oil futures
contracts, and that reflects just the transactions that are known.
Speculators buy up large amounts of oil and then sell it to each other
again and again. A barrel of oil may trade 20-plus times before it is
delivered and used; the price goes up with each trade and consumers
pick up the final tab. Some market experts estimate that current prices
reflect as much as $30 to $60 per barrel in unnecessary speculative
costs.
Over seventy years ago, Congress established regulations to control
excessive, largely unchecked market speculation and manipulation.
However, over the past two decades, these regulatory limits have been
weakened or removed. We believe that restoring and enforcing these
limits, along with several other modest measures, will provide more
disclosure, transparency and sound market oversight. Together, these
reforms will help cool the over-heated oil market and permit the
economy to prosper.
The nation needs to pull together to reform the oil markets and solve this growing problem.
We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com."
If we can reduce the price per barrel by $30-$60, it will significantly improve our economy. So visit the link above and let's tell Congress to get their act together!
