John glenn’s thoughts opuscula freeze gas prices necessary for part 2 of iran deal storing electricity in water


In the 1970s, when the price of crude oil tripled on the world market the then President of United States, Nixon imposed a price ceiling, on both crude oil and gasoline. There was a maximum price allowed by law to be charged for gasoline. Any gas station owner charging more than this maximum price would be guilty of fraud. Price controls were turned in to address the shortage of gasoline. This was done due to public demand to keep the prices low. But the artificially depressed pump prices imposed during the oil crisis of 1973 — which stayed in place in various iterations through 1980 — brought about lines at gas stations and an artificial shortage of gas.

Following hurricanes, Florida’s governors have implemented laws preventing price gouging – at the pump and elsewhere – and enforces those laws with stiff penalties. The U.S. government would have to do something similar, even at the risk of offending Big Donors With Deep Pockets. Can it do this? Will it do this?

Dealers sold gas on a first-come-first-served basis, and drivers had to wait in long lines to buy gasoline. The price controls resulted in a fuel-rationing system that made available about 5 percent less oil than was consumed before the controls. Consumers scrambled and sat in lines to ensure they weren’t left without. Gas stations found they only had to stay open a few hours a day to empty out their tanks. Because they could not raise prices, they closed down after selling out their gas to hold down their labor and operating costs.

OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by ten other Members: Qatar (1961); Indonesia (1962) – suspended its membership in January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership in December 1992, but reactivated it in October 2007; Angola (2007); Gabon (1975) – terminated its membership in January 1995 but rejoined in July 2016; and Equatorial Guinea (2017). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

Surprisingly (at least to this scrivener), according the US Energy Information Administration (EIA) the highest price of gas in the US was reached during the week of July 7th 2008 at $4.11 per gallon for regular grade fuel (note this is a weekly average price). 4 A far cry from the days of gas wars and 25¢-a-gallon for regular.

Between 1975 and 2018: Gas experienced an average inflation rate of 3.82% per year. This rate of change indicates significant inflation. In other words, gas costing $20 in the year 1975 would cost $100.20 in 2018 for an equivalent purchase. Compared to the overall inflation rate of 3.62% during this same period, inflation for gas was similar.

Mr. President, while most Americans probably agree with your cancellation of a bad agreement with the ayatollahs, those same Americans will be mightily upset if gasoline prices soar. Not only will the average driver suffer, but the retail industry will suffer as truckers park their rigs due to the cost of Diesel.