No easy way to trim oil costs

No easy way to trim oil costs
EDITOR:
I will concede Mr. Lyden's oil expertise, but his letter last Sunday concerning the price of gasoline could use a little economic reality.
He stated that "30 to 50 cents per gallon is attributable to new cleaner fuel requirements." While it's true that these requirements make gasoline more costly, it is not true that they are new. Most of these regulations existed before the recent price run-up. Eliminating them may cut the price 50 cents, but why would we do that? Americans were willing to pay 50 cents to clean up the air when gas was $1.50. Raising the price of gas to $3 doesn't lower the value of clean air. Cutting these costs may make Mr. Lyden's job easier, but it doesn't make us breathe easier.
His other point is little more complex. He states that oil companies must base their prices on the commodities market price, and the commodities market price is a speculative price, not the true cost. Right now, that speculative price is driven by fear. His implication is that the difference between the true cost ($25) and the market cost ($75) is somehow influenced, if not controlled, by government. Thus, he asks, "Why isn't our government more aggressively addressing this issue?"
Hmm. How do they do that? Give the FDR speech, "All we have to fear is fear itself & quot;? Or do the JFK jawbone which caused the steel companies to roll back prices in the 1960s and close their doors in 1970s?
However, if Mr. Lyden is right and this spike is speculative, the government doesn't have to do anything. It will correct itself. Speculations always correct themselves. They did so when the product was tulips in the 1600s, and they did so again when the product was Internet start ups in the 1990s. If the fear of oil shortages proves to be misguided, there are going to be a lot of speculators stuck with a lot of $75-a-barrel oil that nobody wants. In order to sell that oil, they will be cutting prices -- big time. And if they happen to be oil companies, their record profits will quickly turn into record loses.
Of course, the other explanation is that these are not speculative price hikes, but they are legitimate supply-demand price increases. If there is a permanent imbalance between supply and demand, no amount of government exaltation or jawboning will change that reality. The only way to lower these prices is to increase supply or decrease demand. We could drill in Alaska or off our coast or build some new refineries. But liberal Democrats say we can't do that. Supply is not an option.
We could decrease demand, but ordinary Americans have pretty much nixed that idea. Nonordinary environmentalistswould throw all our SUVs onto a giant bonfire. Note that I said our SUVs. They would never burn their own.
But even if we had an uncharacteristic flash of political honesty and courage, these are still long term solutions. Unfortunately, in the short run, the only way we are likely to get a significant decrease in demand is the old fashion way -- a recession. Now maybe you're willing to lose your job in order to get gas prices below $2 a gallon, but excuse me if I don't share your benevolence.
THOMAS MASKELL
Poland
40th brings fond memories
EDITOR:
I really enjoyed Don Shilling's April 23 article on the 40th anniversary of the Lordstown plant. It brought back a lot of memories of that plant in its early days.
I started there as an engineer in October 1965. We had to wear white shirts and ties, hard hats and old beater shoes. The hard hats for the construction going on overhead and the beater shoes for all the mud and dirt, since the concrete had not yet been poured in many areas of the plant.
In January 1966, Chevrolet had considered building the new Camaro at Lordstown. That same month my boss who was head of the inspection department sent me to the GM Research Complex to work on the Camaro. I spent about two weeks there. After returning to Lordstown, we learned that the the Camaro would be built at other plants.
The first car we built at Lordstown was a white Impala 4 door with a 327 engine, and most of the options of the day. I believe it was sold to a woman in Warren through a local dealer.
Even though union-management relations were not ideal, that first car was truly a team effort and I was really proud to be a part of it as it came off the line and through final inspection.
I look forward to attending the anniversary activities at the plant July 1.
DICK WEBER
Columbiana
He's not wild about Harry
EDITOR:
Would parents willingly expose their children to spells and witchcraft? Many uninformed parents by the millions are embracing the Harry Potter books that contain authentic spells used in satanic practices. These spells, which are used with frequency in the books, have their origin in the occult. The occult uses spells for diabolical proposes, that draw people into the darkness of the Satanic arts. Do we want our children to be exposed to this?
Former witches and warlocks, testify that the sorcery in Harry Potter is real. They plead with parents not to let kids get exposed to it. They warn of the gripping affect it can have, on young, impressionable minds that read Harry Potter.
Does the average American understand the power of the occult? A family member of mine got lured into witchcraft by simply paging through a book she found in a store. For her, what began as a innocent curiosity, turned into the practice of Satanism.
Children today face many pressures. They are bombarded with the glamorization of premarital sex, pornography, drugs, violence, and greed. Being exposed to spells and witchcraft does not enhance their lives. Let us expose them to the classics in literature, the lift of Christ, stories of human excellence, scientific discoveries, sports, space exploration, and the history of our country and the world. There are better forms of entertainment and learning beyond the bewitchment of Harry Potter.
BRIAN BEAL
Hermitge