Todd M. Davis – 12/17/08

This page was last updated on December 17, 2008.

Don’t be fooled by low gasoline prices; Todd M. Davis; Beaver County Times; December 17, 2008.

Earlier this year Mr. Davis wrote an equally insightful letter entitled “U.S. sees through Israel’s eyes.”

Below is a detailed critique of the subject letter.

“What should we make of gas prices at a five-year low?”

[RWC] This is one of two oil company conspiracy letters today.

“Let us think this through from the oil companies’ point-of-view. After eight years of having good friends in the White House, oil executives are getting nervous.”

[RWC] I guess the idea a worldwide recession and the free market are the reasons didn’t occur to Mr. Davis.

“First, President-elect Barack Obama won a handsome victory, largely due to his green agenda. After inauguration, he will have two houses of Congress, political clout and a desire to break our addiction to foreign oil. Add to this the Detroit bailout. Washington is in an increasingly powerful position to force Detroit to do what it could not do on its own, namely, to produce fuel-efficient cars.”

[RWC] “President-elect Barack Obama won a handsome victory, largely due to his green agenda?” Is Mr. Davis kidding? Based on post election polls, most Obama supporters didn’t have a clue what Mr. Obama’s positions were on anything. Besides, the “green agenda[s]” of Messrs. McCain and Obama were nearly identical.

Detroit can’t “produce fuel-efficient cars?” Again, is Mr. Davis kidding? The Big Three make a bunch of great fuel-efficient cars. That’s not Detroit’s problem. The problem is Detroit’s production costs are $1,500-$2,000 higher than an equivalent foreign car. That’s why Detroit can’t be price competitive with foreign manufacturers (including foreign companies building cars in the U.S.) and stay in business.

“These developments taken together should make oil men weep. How are they responding? They are dropping their prices down, way down. They are hoping that a few months of cheap gasoline will cause us to forget about our energy problems. After we are sufficiently distracted from the changes we must make, then they will raise prices up again, way up.”

[RWC] Here’s yet another person who believes “oil men” gather in smoke-filled rooms and set prices. In case Mr. Davis has been asleep for the last 35 to 40 years, oil companies don’t set the price for foreign oil. A combination of the marketplace and the governments of oil exporting countries do that.

“Unfortunately, Americans have a history of letting powerful interest groups fool them into acting against their own interests. Will we be fooled again? I hope not.

“In spite of the latest oil company shenanigans, we need to press our lawmakers to keep thinking and voting green. We need wind. We need solar. We need nuclear. We need natural gas. We need fuel efficiency in all things and we dare not allow oil executives fool us with their low prices.”

[RWC] I never stop getting a kick out of the oil company conspiracy crowd.