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Coloradans blame oil companies, market speculation for high gas prices

by: checks-and-balances

Tue Aug 23, 2011 at 13:30:03 PM MST


( - promoted by Fong)

Coloradans blame market speculation and oil companies for high gas prices, and the vast majority say the best way to bring prices down is to crackdown on market manipulation, according to an internal poll released today.

The Checks and Balances Project commissioned Colorado pollster Chris Keating to conduct research that shows that 79 percent of Coloradans favor a crackdown on oil price speculation and market manipulation to reduce gas prices. The survey showed 77 percent of Colorado voters think reducing oil consumption through efficiency would be an effective way to reduce prices.

"Coloradans are tired of paying for their gas twice: once at the pump and again through their taxes," said Matt Garrington of the Checks and Balances Project. "It's clear car and truck drivers in this state want solutions to this problem now, including a crackdown on market manipulation, a balanced approach to energy development and an end to taxpayer handouts for oil companies."  

Coloradans strongly favor ending taxpayer subsidies for oil companies. Seventy-two percent of Coloradans say ending oil company subsidies and transferring them to companies that are developing wind and solar power would be an effective strategy for the nation.

"It's time for oil and gas companies to stand on their own two feet," said Garrington. "Coloradans understand that we simply can't afford to pay billions in taxpayer subsidies to Big Oil. It is simply immoral to continue the Big Oil gravy train when Americans have been asked to sacrifice billions in cuts to Medicare."

To reduce gas prices seven of 10 Coloradans favor diversification of the sources of energy by creating a national renewable electricity standard that requires 20 percent of electricity to come from sources like solar, wind and geothermal power.

The live telephone poll conducted May 24-26, 2011 by Keating Research, Inc. as an internal messaging survey. It was released to the public on the eve of the Americans for Prosperity "Running on Empty" Colorado tour stops that promote increased oil drilling. The Checks and Balances Project criticized the group as a front for Big Oil and noted that billionaire oil refinery tycoons David and Charles Koch fund the organization.

"The Americans for Prosperity tour is running on empty ideas. Instead of investing our energy dollars into drilling deeper and putting Colorado land and water at risk, we need to build cars that can go further on a gallon of gasoline and to tap into the clean energy of the wind and sun - energy sources we have right here in Colorado that never run out," said Garrington.

Results of the survey were based on 603 interviews with registered Colorado voters statewide. The poll has a margin of error of plus or minus 4 percent.

checks-and-balances :: Coloradans blame oil companies, market speculation for high gas prices
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What's going to stop them?
And even if they are stopped this time, what's going to stop them from continuing to seek subsidies?  

No Matter What People Think, the Price of Gasoline Follows Crude
Crude oil is set by world markets.  There are ups and downs with speculation, but there are underlying factors which include the new demand for gasoline in China, India and Brazil. The latter two have been buying new cars at the rate of 12 million per year each year since 1998.  These are new, not replacement cars as we find here in the US, and their being driven increases demand for gasoline incrementally from the year before and represent about 1 million barrels per day of crude oil demand not seen in a prior year.  No new crude oil has been found in large quantities and at low cost for production.  Forecasts from the industry show, at best, near constant production through 2020, other forecasts indicate declining production.  Under these cases, the price of gasoline will rise proportionately with that of crude oil which will rise with demand.  Expect to see higher gasoline prices in the coming years.

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