Con't
CALLER: I don't have an answer for you right off on that.
RUSH: Well, you know, I've got limited time --
CALLER: I don't know how all the other countries are working.
RUSH: You're a great guy, you're a nice guy. There's no free market in gasoline. Propaganda works on this every time the price starts going up, and I don't get it. I just don't.
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RUSH: When you get otherwise intelligent people saying there's no free market in the price of gasoline, after all of the countless years of detailed attention paid to the subject, the painstaking research, the patient presentation of facts by me, I often throw up my hands. Let me try, because I know that the gas price is one of these things that when it comes up, it goes up, people think that there's some suspicious or conspiratorial reason behind it, they just cannot accept the fact that the free market works in gasoline. So let me ask a question. Or let me ask many questions. Let us speak of many answers. How many oil companies are there that sell gasoline in the United States of America? How many are there? Take a wild guess. I don't even know the answer, but it doesn't matter because there's more than one. If you don't think they are competing with each other, then you don't know the world. ExxonMobil, BP, Shell, and whoever the others are, they compete with one another. That's number one. I realize that some of you might think they all get together and set the price and so forth.
Second thing is, how many companies are there selling gasoline in this country that are not American? Citgo is one, there's Hugo Chavez. British Petroleum. Do you think that ExxonMobil and BP and the rest are getting together with Hugo to set prices in the United States? Remember, now, these people are the world market. Now, where does this oil come from? Gasoline is oil first and there are a bunch of different places it comes from. All over the world. Comes from Canada. In fact, that's the number one country we get oil from. That's our number one importer. Saudi Arabia, Venezuela, Russia. The oil companies do not own this oil as it is. I don't know if you've noticed this, but Hugo Chavez just kicked the oil companies out of Venezuela. He's nationalizing everything. He's taken it, screw you, if you want to stay here and run the wells and so forth we can work out a little production deal, but, ha-ha-ha-ha, this stuff belongs to Venezuela because the oil is ours. Same thing happened in Saudi Arabia and Rockefeller got his change before that happened, but same thing happened there, basically. "We don't need you anymore."
So tell me how it is that oil, which starts the whole price timeline, coming from so many different places in the world, ends up as refined gasoline with no free market determining the price in this country. I want to know how this is possible. I want to know how it is that BP, ExxonMobil, Citgo, name other companies, the size that are out there -- hell, I don't know -- Conoco's merged with somebody. I want to know how they're getting together with the Russians and with the Saudis and coordinating this. Then I want you to tell me, the guys playing the futures market in oil on the commodities market, I want you to tell me how they are involved in this so that the price is set by one person from the time it comes out of the ground 'til it gets to your car as gasoline, the idea that that's true is false. All these companies compete with one another at the retail level, they are competing with each other to find oil all over the world. We have to buy oil from all these different countries, and we have to refine it here. All of these aspects have market circumstances that rein in the desire for people to charge more than what they can get for it. Then you've got the stockholders of these publicly traded companies who are demanding profits as big as they can be. They're publicly traded companies and if the managers of these companies don't get as big a profit as they could or if they get too little a profit, there's going to be hell to pay from the shareholders.
Now, I want to know how in the world anybody can genuinely think that the oil companies, who are citizens of the world, own every bit of oil that comes out of the ground and then every bit of the processing before it becomes gasoline, then it becomes gasoline and goes into your tank, I want to know how this happens. This is news to me. And why is it that the Democrats in the Congress are suing OPEC in order to do something about the rising gas prices. Why aren't they suing Big Oil? And how is it that OPEC isn't Big Oil and how is it that Hugo Chavez isn't Big Oil and how is it that Russia isn't Big Oil, and how is it that British Petroleum and ExxonMobil and Conoco or whoever else, how come they are? I'm sitting here mystified by all this. This is not to say that I'm insensitive to the price, but the idea here -- oh, and one more question. Have you heard of a country called China? I'm sure many of you have. We refer to them here lovingly and affectionately as the ChiComs. Well, despite their best efforts over there, they are having an expanding economy. There are now multimillionaires in China and more and more people have access to automobiles that use gasoline, and they are putting a lot of pressure on the worldwide supply of gasoline, and in this country, your friends, the Democrats, are standing in the way of this country finding any more oil on our property; be it Alaska; be it off one of the coasts, they won't let it happen, while at the same time they're talking about energy independence.
So I want to know how it is, at that Big Oil, which earns 30% of its income from operations in the United States, I want to know how it is that Big Oil and all these companies competing with one another somehow control the product around the world from the moment it comes out of the ground. I want to know how they own Saudi Arabia. I want to know how they own Russia. I want to know how they own Iran. I want to know how they own Venezuela. guy, Big Oil -- there's oil coming out of the ground everywhere but here. I want to know this. If you can answer these questions, with all the pressure on the supply, the worldwide supply that the rising Chinese economy is put -- and the Indian economy, by the way, they're going bonkers as well, if you can tell me how Big Oil controls every drop from the time it comes out of the ground until tends up as gasoline in your tank, then I can maybe accept your -- but you can't tell me because it's not possible, because it isn't true, because it doesn't happen.
If you want a shocking statistic, I've forgotten the actual numbers here. Going to have to go back to my website tonight to the archives, I gotta remember the date and find this. Maybe Koko can search for it real quick when he hears what I'm talking about here. I was playing golf with a guy who had just had a conversation with an energy expert and he was passing the story on, secondhand. I didn't hear it from the horse's mouth, but the numbers of people in the world who don't have electricity would stun you. Who don't have running water, stun you. Don't drive, don't have automobile, would stun you. It's a vast, vast majority. If those people ever got -- by the way, you people like flipping on the light switch at home. You like when the air-conditioner works? Where do you think that comes from? They won't let us do nuke power, so it's coal and it's oil. I haven't even scratched the surface of the oil industry here. I haven't even begun to scratch the surface, the costs in finding it, drilling it, bringing it up, transporting it as crude across the oceans and pipelines and so forth.
I literally am amazed that somehow the truth and the facts of the oil business, economics of the oil business, escape people when the economics of most other things are never questioned. Well, I'm not totally mystified. You've got the Democrat Party and the Drive-By Media routinely telling people they're being gouged, and you've got Democrats talk windfall profits taxes and so forth and so on. I'm blue in the face trying to describe to you how much every gallon you buy goes to your state, local, and federal government as total profit. Nobody ever complains and they're talking about raising those taxes, by the way, in the midst of all this, yeah, because, you know what, as the price goes up, some people are buying fewer gallons of gas, and that's less tax money. So the roads may not be repaired, bridges may not be prepared and so forth. So all these people out there wanting you driving these little windmill hybrids. I'll tell you what, if everybody did that, and the consumption of gasoline went down big time, you think the taxes wouldn't go up to make up the loss to the government? It would. This market is so complex, it's like the climate, although it's not nearly as complex as the climate, it is profoundly complex, and to try to control it and corner it is impossible.
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RUSH: I have a little chart from the year 2001 from the Wall Street Journal. The source of this chart is Energy Intelligence Group. It's a chart of oil companies by size of crude production. The largest oil company in the world: Saudi ARAMCO is the number one oil company in the world in 2001, producing 8.3 million barrels of oil a day. Next is the National Iranian Oil Company, NIOC, at 3.77 million barrels of crude a day. The third largest oil company is PEMEX, that's Mexico, 3.56 million barrels, and they just announced a huge find in the in the Gulf of Mexico off of their shores. The fourth largest oil company by crude production -- and this is going to be a small number now given what's recently happened there -- is Venezuela. The company is PDVSA, three million barrels of crude a day, but they've just nationalized a bunch of oil down there, they claim, so they're going to be higher than that. Number five is ExxonMobil at 2.54 million barrels of crude a day. So you got Saudi Arabia at 8.3 million barrels a day. There's ExxonMobil at 2.54. ExxonMobil's market share of the world oil market is 3%. Don't anybody call here again and tell me about Big Oil engaging in price fixing and controlling every bit of the oil from the ground to your tank as gasoline.
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Read the Background Material...
AP: House approves anti-OPEC bill
Reuters: Gas price hikes? cost: $146 a car so far this year