Price Drop Is Big Oil Paying Back Bush & Cheney (40+ / 0-)
This current price drop is temporary.The prices will climb again after November elections.Bush & Cheney have done huge favors for big oil -- they have:given them billions of dollars in subsidies; cut costly environmental regulations; granted access to more public land for drilling; allowed them to pay fees for use of public land that are far below even reasonable market prices; allowed the industry to become an oligopoly without the necessary regulation to avoid price fixing and other market abuses.
Big Oil thought they could repay the favor through campaign contributions.However they saw, and more importantly, the White House saw, that Bush's poll numbers were becoming inversely proportional to the price of gas, i.e., the higher the price of gas, the lower Bush's approval ratings.The President could do nothing to fix his own ratings. His ratings were making it seem apparent that Congress was going to flip over to the Dems.
So Bush and Cheney called in a chit from big oil (including their Saudi friends) to get them to drop the price of gasoline.It worked. As gas prices have dropped, Bush's poll numbers have climbed and he is far less "toxic" to Congressional reelection campaigns now.
If this theory is correct, we will see prices continue to drop -- below $2.00/gal by the elections.Prices will rise dramatically though after the elections so the greedy CEOs and Bush Cronies can make more and more millions of dollars. They like to keep the wealth concentrated in among themselves.So, my prediction is gas will be less than $2.00/gal by the end of October. But it will be back up to $2.50 by Christmas. If the Rethugs keep Congress, it will hit $4.00 by the end of 2007 -- though it will drop again in time for the 2008 elections.