Tuesday, June 17, 2008

The World Suffers Because of Greedy Oil Tycoons

A few weeks ago, movie theatre companies announced they were increasing the price of popcorn and other already over-priced items at their concession stands. They claimed, their costs were rising to have these goodies delivered from their suppliers, because of increased fuel costs.

Food prices have constantly been on the rise, thanks to the cost of oil. It costs more to get the food from the suppliers to the grocery stores, because it costs more to fuel the trucks that carry those goods.

Air Canada – the largest national airline in the country – announced 2,000 layoffs due to – you guessed it – the constant increase in fuel.

Meanwhile, last week in Quebec, several gas stations were charged with fixing prices to ensure they get more than their fair share of the oil tycoon revenue.

We’ve long suspected that the mega-large and all too powerful oil companies have been fixing prices. Granted, a handful of gas stations in one province doesn’t mean much – but the constant rise of fuel around the globe certainly does.

Most companies have to set their prices in accordance with what the competition is selling theirs, otherwise no one will buy it. But if all the oil and gas companies, of which there are only a small number, work together to ensure they all sell their products at the same prices – guess what?

We all suffer. People lose their jobs, because companies can’t afford to keep them on because their costs go up. The costs of products and services which we depend on for our very survival – such as food, clothing and shelter – all increase, because it costs more to make and transport these things, due to increased fuel costs.

The oil tycoons on the other hand, continue to claim that oil prices are set by the standard market trends – the more people who want the product, the more it costs to fill that need – the classic supply and demand model.

Funny though, as fuel costs increase, more people than ever are taking unusual measures to cut their fuel consumption needs. Transit authorities all over Canada and the States are reporting record increases in users of public transit.

Many people even admit to taking the bus, instead of driving, to save money – because they can’t afford to refuel their cars.

Yet, with the oil tycoons claim there is a constant increase in the demand for their products, so the price is constantly going up.

I think the oil tycoons are ripping us all off. They are harming the fundamental basics of life, all so they can have a new car for every day of the week.

They probably spend a lot to fuel their cars – but hey, they get it all back in the end. Of all the companies we hear suffering due to oil costs – the oil companies aren’t any of them.

General Motors is shutting down a whole automotive manufacturing plant – with thousands of employees – in Ontario, because of increased oil prices forcing people to not be able to afford a new car.

Air Canada as mentioned earlier, is laying off 2,000 employees, but they are also cutting flights and raising prices to cover the costs of their increased fuel needs.

But we never hear of Imperial Oil, or any of the other oil tycoon companies cutting staff, slashing products or services, or closing factories or processing plants. All they do is keep raising the price of their products – while the world suffers.

We have become far too dependent on crude oil – which is where the real mess lies. If we utilized alternative fuels, such as wind, solar power, even electric, then we wouldn’t be at the mercy of a select greedy few oil tycoons. If we took advantage of alternatives to oil-based products, then the oil companies really would be forced to set their prices in accordance with market trends – instead of whatever they want to pad their pocketbooks.

But as with many things in life, we often don’t learn our lesson until it is too late. The economy is slumping, people are losing their jobs, and prices continue to rise – all because we depend on oil-based products and services to keep the economy moving.

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