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Convoluted logic

May 5, 2012
The Daily Mining Gazette

To the editor:

These are sad times for Tom Murr of Osceola, IA -- gas prices. It is evident that America is in such a pitiful state when visitors to the Upper Peninsula cannot budget an additional $40 to $60 so they can continue to visit the U.P. This is something to be fixed at election time in November. Mr. Murr travels 1,200 miles round trip from Osceola and, for discussion's sake, logs another 500 miles in the U.P. If his mileage is between 20 mpg and 14 mpg and gas prices are 50 cents a gallon higher, he will pay $40 to $60 more this year.

Why can't Mr. Murr visit the U.P.? There is not enough drilling and this will be fixed at the November election. And there is no pipeline to transport a tar sand slurry from Canada to Texas where it is distilled into gasoline and exported and this, too, will be taken care of at the November election. That may sound convoluted but to a true believer and patriot, it will keep my gas prices down.

Does the possibility exist that there may be other reasons for the gas prices that are keeping Mr. Murr in Iowa? Years ago, during periods of fluctuating oil supply, large users of fuel such as airlines and major trucking firms would purchase oil at a price to be delivered at a future date and they accounted for approximately 70 percent of the futures market. The remaining 30 percent was in the hands of the players, the speculators who would "bet" on the direction of the market. They found oil futures to be lucrative and minimally regulated instruments. It is currently estimated that the growing speculator market accounts for 65 percent of the market. It is estimated that the actions of the speculators adds fifty cents to the cost of a gallon of gas. That fifty cents does not go to retailers, drillers, pipeline workers, refiners or anyone else in the oil food chain. It goes to Wall Street. There is regulation to curb the speculator; however, implementation has been challenged by Republicans and by the Wall Street speculators both through legislation and through the courts. I am sure that this is what Mr. Murr and the true believers and patriots will be remembering at that Election Day in November.

Convoluted Logic: "The only real logic for real Americans."

John Pastore

South Range



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