Rising Prices Of Oil

Essay by PaperNerd ContributorUniversity, Master's April 2001

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This issues paper is on the rising prices of oil. Whenever the prices of oil products such as gasoline, diesel or heating oil rise, OPEC is usually made the scapegoat by some sections of the media, politicians and the general public. "OPEC must raise output," are the cries of the people. This is based on the incorrect assumption that the Organization is responsible for high product prices. Examples of this is on Al Gore's web site (http://www.algore.com/briefingroom/releases/pr_092100_Gore_Wins_2.html), it states: "Crude oil prices are at a ten-year high, while the big oil companies have seen their profits increase by two to three times in the past year," said Gore. "We have to change that. One of the central choices we face in this election is whether we will have a President who's willing to stand up to the big oil interests and fight for our families. That's the kind of President I intend to be."

Another example would be on Joe Lieberman's web site (http://www.lieberman2000.com/oil1), it states: "Connecticut families have been hit by wave after wave of price hikes, and this assistance - like a lifeline - couldn't come at a better time," Dodd said. "But this action merely treats the symptoms and not the cause, and I again call upon the president to draw down the Strategic Petroleum Oil Reserve. Only then can we lessen the impact of spiraling prices and limited oil supplies." "We appreciate this additional aid, but it is not going to solve the underlying problem - bringing down the astronomical prices of heating oil. That is why we have been pushing the President to draw down oil from the Strategic Petroleum Reserve, which would likely have an immediate impact on prices. Today the President signaled he has not ruled out this option, which is...