The blame game
The rise in gasoline prices has once again given politicians an opportunity to play the blame game. The more vocal are the ones who legislated our dependence on OPEC for our oil supply. Let us put prices in perspective. By updating a report from the 1970s, there are very few places left where you can buy a cup of coffee for $1.00, which is probably 98% water. If a coffee cup holds 4 oz and there are 128 oz in a gallon, then there are some 32 cups to a gallon. At $1.00/cup that equals $32.00/gal for coffee, not including tax, tips, or handling. Compare that with the average price of a gallon of regular gasoline of $1.35 plus 41¢ federal and state tax for a total of $1.76/gal.
Now, the total cost of a barrel of coffee at the above prices would be $1,344.00. Compare that to $35.00/bbl of oil.
The price of oil in 1969 was $2.95/bbl and in every session of Congress for the next 11 years there were taxes or costly regulations imposed on the oil industry which were passed on to consumers in higher prices. When people in the oil industry attempted to meet with members of Congress to discuss increasing domestic production by exploring the many prospective areas in our own country, they were on a coffee break accepting political contributions from environmental groups. These people preferred that our supply on oil come from OPEC, as they didn't want to disturb the long-tailed jumping mouse, the cactus ferruginous pygmy owl, or the Mexican garter snake with our drilling operations.
After digesting all the above you may need to know that a gallon of Pepto-Bismol will cost $62.75/gal, or $2,635.00/bbl.
Doyle T. Grogan
Denver