The Real Fuel Problem

If you're a consumer in the United States - and that's pretty much all of us - it's been almost impossible not to notice the rising price of gasoline. Even if you use public transportation, the cost of most goods and services has gone up sharply as higher fuel prices put more pressure on the costs of doing business.

For partisans on both sides of the aisle, we have to note that your standard bearers are not doing as well as we think they should be on issues related to energy policy. We don't even have to look at energy policy as a whole - just gas and oil - to see both positive signs of acknowledgment, as well as failures to act, from both political camps.

We're aware the President recently had the U.S. Attorney General's office form a new commission - the Oil and Gas Price Fraud Working Group - to supposedly root out cases of fraud and collusion. Recent events give us at least a small sliver of hope - for example, the Federal Energy Regulatory Commission's recent $30 million civil penalty on a less than honest natural gas trader.

Still, we think our skepticism of President Obama's actions on this subject has been earned. Every President since Jimmy Carter - Republican and Democratic alike -  has promised they'll organize a committee to search out fraud and price collusion in the energy industry over the years. Their success rate has been about the same as George W. Bush's at finding weapons of mass destruction in Iraq.

For those partisans on the right, it was somewhat of a surprise on Monday when Speaker John Boehner admitted to ABC News reporter Jonathan Karl that oil companies share some of the blame for the ridiculous increase in gas prices. Mr Boehner even was willing to open the door to cutting some subsidies for the massive oil companies, according to his comments.

While it was a shock to hear those words coming out of the mouth of a Republican like Mr. Boehner, his conclusion is similar to one that President Obama already made last week. That slight admission that even our leaders have knowledge of collusion by the oil companies on the price of oil - and therefore, gasoline too - was something we've all assumed to be true for years. Our reaction is much like police Captain Renault in Casablanca being shocked to find out there was gambling going on in a place known for illicit games of chance.

There are those who still attempt to claim that the extreme increase in gas prices is driven by supply and demand pressures - but we're not sure how. That load of balony has been proven bogus time and time again. It's been debunked so many times, it amazes us that anyone with a shred of intelligence or decency even brings up the idea.

This time, OPEC just announced last week that they're cutting production due to weak demand. The Saudis admitted they see a glut of supplies in the world market for raw crude oil. Those who understand how oil markets work agree - it's the sharks on Wall Street, not the sheiks in the Middle East, who are responsible for the price of gas shooting up near or above $4.

Everyone knows what the true problem is. However, much like the problem of the U.S. not bringing in enough revenue - a different problem that even Mr. Boehner admitted to on Monday - no one seems to have the political will to actually DO anything about the speculators.

We all know what's broken. It's time to fix the problem. The problem isn't in the Middle East - and it can't be solved by drilling. The problem is on Wall Street.

No matter what the excuses of any of our politicians are on this issue, the problem needs action to fix it - and that lack of action is what is truly fueling the anger of most Americans.