Greed/make up profit are in the mix here .
However , some other things that come into play here are : the seasonal change to the new blends . Unfortunately , there isn`t one blend but over 30 if my memory is correct . Each time a refinery has to change to what another State requires , they have to shut down that line and purge everything , including the pipeline . Sorta expensive .
Right now , land drilling is in the toilet , but offshore appears to be holding up so far .
The devaluation of the dollar is also having an effect as Mid East
oil prices are based on the dollar . If it goes down , they raise the price per barrel .
Right now , many producers are losing money and have reduced or halted drilling programs and will wait until prices come back to where they can make money . Throw in a hurricane of two this summer , and we are screwed again .
Maybe someone can check my figures , but I heard that the barrel price quoted is for West Texas crude ... and most of our gas/
oil is from the mid east ... which is higher than the domestic
oil .
For what it`s worth ... in 2007 ... 62 % of our energy came from oil and natural gas , 23 % from coal , nuclear and hydrolectric was 11 % and renewables approx.4% . If my source is correct , wind and solar made up 10% of the renewables .
Looks like those won`t be the savior of the country as we were promised .