Oil drilling has been on the rise in the US for the last few years. Hundreds of wells in Louisiana and Texas have been permitted and capped. Germany and Japan – two countries that drill virtually no oil – pay the same as we do at the pump.
But these are mere facts and Republicans are the party of slogans and fear. Facts are meaningless.
Equally lame was the MSNBC-led liberal media response to the attacks on the President. One by one repeater commentators from Ed Schulz to Keith Olbermann laid down the party line that, “there is nothing Obama can do about oil prices”, even citing a Fox News report to bolster their rickety Beltway thinking box.
The oil market, like most markets in this post-free market phase of monopoly capitalism, has nothing to do with supply and demand. It has to do with two things: speculators and an oil cartel I call the Four Horsemen – Exxon Mobil, Chevron Texaco, BP Amoco and Royal Dutch/Shell.
After decades of secret agreements, refinery shutdowns and mergers; this Rockefeller/Rothschild-owned cartel has the citizens of planet earth by the proverbial balls. No amount of drilling will fix this.
Short of nationalizing Big Oil, what is necessary – as I have opined several times before in this space – is simple enforcement of both the Sherman and Clayton Anti-Trust Acts.
Exxon & Mobil should be broken up into separate companies. Ditto Chevron, Texaco and Unocal. Ditto BP, Amoco and ARCO. Ditto RD/Shell and Pennzoil. Ditto Conoco and Phillips.
There is simply no competition in the oil markets.
This cartel now controls the flow of oil from the Saudi Arabian wellhead to the Toledo gas pump. While reactionary Republicans continue to blame environmentalists for the lack of US oil production, it was these oil giants who capped permitted wells in Texas and Louisiana and moved production to the Middle East – where Bangladeshi, Filipino and Yemeni workers are paid $1/day to work the oil rigs.
Four Horsemen control of refineries and pipelines are the key. Recently they have been shutting down refineries to artificially limit oil supply. And it was instructive that shortly after Obama denied permitting for the Keystone Pipeline – from which the US was to get NO oil – the cartel jacked gas prices as a sort of punishment.
I am now convinced that the “peak oil” phenomenon is a complete fabrication designed to justify the trebling of gas prices we have seen in the past decade. It is no coincidence that the “peak oil” fairy tale began to circulate just as the Four Horsemen were formed via a flurry of mergers a decade ago.
The second thing that can be done – short of shutting down the NYMEX oil futures casino – is for the Commodity Futures Trading Commission to limit the size of oil futures contract positions. The largest positions are held by the vampire squid Goldman Sachs, Morgan Stanley and other parasite investment banks.
The problem, as always, with the phony American political debate, is cowardice. The two parties love to bash one another, all the while ignoring the elephant in the room on a broad set of critical issues.
The pachyderms here are fairly large and thus easy to identify. It’s time for the President, Congress, the media and the American people to grow a pair and demand two simple actions:
(1 Break up the Four Horsemen using existing anti-trust law.
(2 Drastically limit the size of oil futures trading positions
Failing this the American economy will inevitably head back into a recession, the dumb people in the room will win their ridiculous “Drill Baby Drill” argument and Obama will lose the election.
Dean Henderson is the author of four books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve & Stickin’ it to the Matrix. You can subscribe free to his weekly Left Hook column @ www.deanhenderson.wordpress.com