With a net income of $ 40 billion, with sales superior to $ 404 billion, 2007 was a very good year for the commodity, for Exxon Mobil and the oil cartel.
When the price of a gallon of gasoline keeps following exponentially the price of the barrel, it doesn’t justify the profit margin achieved by the oil industry.
As an explanation some argue that it is the consequence of the international fierce competition, others simply assert and point the finger at the lack of domestic refinery capacity.
Whose argumentation is more potent, only two options face the future consumers. Either they consciously reduce their own dependence by limiting their consumption, either the government intervenes by adopting the socialist model of nationalization of certain sectors of the economy, presently the energy. Nationalizations will give the green light to the control and the stabilization of the prices. If chosen, it will irrevocably mean questioning the foundations of the US capitalism.
As mush as the latter appears to be unrealistic considering the presence of pressure groups from the industry, the fluctuations of the market and our constant status of dependency, the former is a more viable and applicable solution.
Given that since 2001 the gallon of gasoline almost doubled within 7 years, who would kill the goose that lays the golden egg?
Bearing in mind the worldwide economic conjuncture, the global crisis, I advise any new comer in the world of speculation to invest massively either on the commodity, either on a new BIKE!