StrikeBackAmerica.com

Background Information

Our goal is to get regular updates of pertinent, current information on oil companies. This is to include their profits and the salaries of their executives. This specific information covering the amount of profits they have made in recent years is having an impact on our nation. Ultimately, left unchecked, its result will bring about the fall of the U.S. Economy.

Another thing to consider... How many gallons of gasoline marked Super or Premium are used? Virtually all vehicles that use gasoline can use Regular gas. That leaves literally HUNDREDS of THOUSANDS if not MILLIONS of gallons of gasoline wasted in order to keep prices and profits up. When unleaded gasoline was first started, they told us there would be ONE ( 1 ) and just ONE unleaded gasoline.

"One Simple Act"

The plan...

The Latest Insult

We post stories that show how these companies just add insult to injury upon the backs of the American public. The latest example is below.
Read all of them here...

Oil Prices Fall Before, During and After May 6 Market Panic

THESE PEOPLE, WALL STREET AND THE OIL COMPANIES ARE THIEVES AND CROOKS. !!!!!!!
GAS AND OIL ARE NOT BEING TRADED OR SOLD BY SUPPLY AND DEMAND, THEY ARE MANIPULATED PRICES FOR GREEDY PEOPLE.
STRIKEBACKAMERICA.COM HELP FIGHT WHATS WRONG !!!!!!!!!
STOP BUYING GAS FROM EXXON, THERE ARE MANY OTHERS TO CHOSE FROM, IT'S ONE SMALL STEP BUT IT CAN MAKE A DIFFERENCE.

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It's been quite a week for oil investors. The price of crude oil fell 11% between Monday and Thursday, down from an 18-month high on Monday. The situation was exacerbated on Thursday, when, in the wake of the steepest intraday market sell-off on record, prices fell 3% to close at $76.44 per barrel. While the meltdown and partial rebound were dramatic, the dip was an even more so for oil investors given that prices had already taken a hit for the week. Still, some analysts say the price drop is temporary and it would be unwise to read too much into it.

"I think what happens is that you have so many electronic, algorithmic programmed trades, and the market tanked, and that triggered a lot of programs clued into crude. There was no news. You had thin liquidity, and you had a major, major panic, so that just spilled over," says Stephen Schork, president of the Schork Group and editor of energy industry newsletter The Schork Report.

Even if it was a bizarre fluke, many analysts and economists say it's high time that oil prices fall back down to Earth. Some believe that the premium prices crude has been commanding could be detrimental to the world economy. In March, for example, the International Energy Agency warned that the overheated oil market could threaten any sort of recovery.

"Oil at $85 per barrel just doesn't make any sense in this economy," says Schork. "Mind you, oil in the $70s is still too expensive. Oil should be closer to $65 per barrel than $75 per barrel." Schork estimates that a $65 per barrel price for crude loosely translates to gasoline at $2.60 to $2.75 per gallon. That's rather cheap, Schork says, but given that there are 15 million unemployed Americans, it's likely in line with the general economy.

Trying to Read the Texas Tea Leaves

Still, it's not clear whether lower prices will last. Early Friday afternoon, oil prices were down $1.74 at $75.37 even though they initially rose in early trading. At least one analyst thinks the oil prices could be poised to bounce back, regardless of the free fall in Thursday's session.

"Hard sell-offs usually end in about three days," says Mark Schultz, chief analyst of Northstar Commodity. "You should see some stability start to form."

The broader commodities market, on the other hand, could be taking its cue from stocks, even if there isn't normally a correlation between the markets. Assuming trading stabilizes in Friday's session, the commodities market could follow suit, says Schultz. If stock trading is volatile, Schultz says he wouldn't be surprised to see another late-day sell off on Friday.

"If there is more downside pressure on the stock market, then I think commodities will decline," says Schultz.

In Thursday's trading, commodities took a hard hit -- the CRB Commodity Index fell 2%, and well before the afternoon panic, wheat and corn prices in Chicago trading were down, largely on concerns about the U.S. dollar.

Right now, though, Schultz says one of his primary concerns is beef -- if European markets don't stabilize, demand for beef will likely decline given the inflated prices.

"Supply is tight in the meat sector. Prices are at high levels right now, and if the global economy starts hurting, then you'd see declines in demand and high prices," says Schultz.

Why use premium gas when regular will do?

ALL CARS CAN RUN ON REGULAR GAS !!!!!
SO WHY ARE THEY MAKING MILLIONS AND MILLIONS AND MILLIONS OF GASOLINE FOR PREMIUM AND SUPER ???
GREED.....GREED.......GREED.......GREED........GREED........GREED........GREED...........GREED

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		Cost differences between regular and premium is as plain as, well, the sign at the station, like this one in Chicago.
		By Scott Olson, Getty Images

When prices dropped earlier this year, she stuck with cheaper fuel because "I don't think that my car runs any differently on high, medium or lower grade."

She's right. Engines designed for regular fuel don't improve on premium and sometimes run worse. And today's engines designed for premium run fine on regular, too, their makers say, though power declines slightly. (Background: About Octane ratings)

But premium lovers are passionate. "I would simply curtail driving rather than switch grades," says Bill Teater of Mount Vernon, Ohio, who puts high-test in both his Cadillacs, though only one recommends it. He's sure both the DeVille and the Escalade run rough and lack pep on regular.

Prejudice and preference aside, engineers, scientists and the federal government say there's little need for premium.

When fuel's cheap, motorists are willing to pay 20 cents or so more for premium. But as gas prices sneak back up, the mental wrangle begins anew over whether it's OK to burn cheaper, regular-grade gas.

AS PRICES RISE, CONSUMERS SHUN PREMIUM GAS Average price of a gallon of premium gasoline: 1993 $1.30 1999 $1.36 2002 $1.58 20031 $1.80 Premium gas share of all gas sold: 1993 19.9% 1999 16.8% 2002 13.5% 2003 12.1% Sources: Energy Information Administration, American Petroleum Institute

The answer almost always is yes.

"I personally use regular even though my owner's manual says you'll get better performance with premium," says Lewis Gibbs, consulting engineer and 45-year veteran at Chevron oil company. He's chairman of Technical Committee 7 on Fuels, part of the Society of Automotive Engineers (SAE) Fuels & Lubricants Council. Gibbs knows gas.

"My wife runs midgrade (89 octane) in her car, and it's a turbocharged engine" meant for 91-octane premium, he says.

Premium — gasoline having an octane rating 91 or higher — is just 12.1% of sales this year, down from 13.5% in 2002, when it was 22 cents a gallon cheaper, and well below the modern high of 20.3% in 1994, when it was 49 cents cheaper, according to industry and government data. Despite the allure of premium, once they abandon it, most motorists don't come back, the data suggest.

For every dime increase in the price, sales of premium gas drop 1%, Bob Johnson, general manager of gasoline and environmental services for the 7-Eleven chain, figures, based on data back to 1998.

The main advantage of premium-grade gas is that it allows automakers to advertise a few more horsepower by designing and tuning engines to take advantage of premium's anti-knock properties. But auto engineers generally agree that if you use regular in a premium engine, the power loss is so slight, most drivers can't tell.

"I go back and forth, and I'm hard-pressed to notice" whether there's regular or premium in the tank, says Jeff Jetter, principal chemist at Honda Research and Development Americas. He drives an Acura designed for premium.

Import brands, especially, use premium fuel to distinguish their upmarket models. Most Toyotas, for instance, are designed to run on regular or midgrade, while the automaker's Lexus luxury brand prefers premium. Same with Honda and its Acura luxury line.

"Generally, the more expensive the vehicle, the higher the expectation for performance and the more the customer is willing to pay for fuel," says Pete Haidos, head of product planning for Nissan in the USA.

Actually, the price debate is nearly worthless. At 20 cents more for premium, pumping 20 gallons of it instead of regular would cost $4 more. Annually, that's a difference of $171 for a vehicle that averages 14 miles per gallon — as some big sport-utility vehicles do — and is driven 12,000 miles a year.

Gasoline retailers and refiners like high-test because it's more profitable than regular-grade gas is. The retailer paid about 8 cents more for the premium you pay 20 cents more for — though that margin can swing wildly. Refiners make a few cents a gallon more on premium than on regular when they sell to wholesale distributors.

As long as it's clean

Profit is meaningless to the modern engine, which, regardless of what's specified in the owner's manual, hardly cares what you use — as long as it's clean.

Today's engines use highly evolved versions of a device called a knock sensor to adjust settings automatically for low-octane gas. And more engine control computers have adequate memory to allow separate sets of instructions for various octanes. The engine control computers keep pushing to maximize performance on whatever grade of fuel is used.

Extreme pressure inside the cylinders causes knock, which is the sound of the pistons literally rattling inside the cylinders. Too much too long can damage the engine. A little now and then won't.

The only modern engines that should really need premium are those with superchargers, which force-feed fuel into the cylinders. "You're driving along and just tramp the gas and the knock sensor cannot sense the knock fast enough in some cases," because the supercharger boosts pressure so fast, says Bob Furey, chemist and fuels specialist at General Motors.

Burning regular when the owner's manual specifies premium won't void the warranty, nor damage the engine, even the most finicky automakers say. "You're giving up perhaps just a little bit of performance that a customer wouldn't really even notice, it's so slight," says Furey.

Automakers say they don't test premium engines on regular to check the difference, but some auto engineers estimate that power declines roughly 5%.

"We can't guarantee the vehicle will perform as specified if other than premium fuel is used," says Mercedes-Benz spokeswoman Michelle Murad. All U.S. Mercedes engines specify premium.

All Porsche engines are designed for premium, too, but it's not available everywhere. "Our cars must be able to drive all over the world, and so we are able to run on regular," says Jakob Neusser, director of powertrain development at Porsche's research and development center in Weissach, Germany. "You don't have to feel that a mechanical problem or anything else will happen" using regular gas, even in the highest-performance, regular-production Porsches.

Premium, in fact, sometimes is worse fuel than regular. It resists knock because it's harder to ignite than lower-octane fuels. As a result, some engines won't start as quickly or run as smoothly on premium, notes Gibbs, the SAE fuel expert.

High-test does have a potential fuel economy benefit. It is slightly denser than lower-octane gas, meaning there's a little more energy in a gallon. But the small difference is hard to measure in real-world use, and that same density can contribute to undesirable buildup of waste products inside the engine.

No data show that engines designed strictly for regular run better or longer on premium.

The Federal Trade Commission, in a consumer notice, emphasizes: "(I)n most cases, using a higher-octane gasoline than your owner's manual recommends offers absolutely no benefit. It won't make your car perform better, go faster, get better mileage or run cleaner."

There is "no way of taking advantage of premium in a regular-grade car," says Furey.

"There is no gain. You're wasting money," insists Jim Blenkarn, in charge of powertrains at Nissan in the USA.

"No customer should ever be deluded into thinking there's any value in buying a higher grade of octane than we specify," says Toyota's Paul Williamsen, technical expert and trainer.

But premium retains a mystique.

Even Mayne, the sensible Subaru owner who has switched to regular, says she'll buy premium when her neighborhood station has a special price. "It's my perception that I might get better gas mileage or that it might be better for my engine," she says.

"I would stop driving rather than use a lower grade of gasoline," says Andrew Martschenko of Boston, who drives a 2003 Nissan Maxima. Nissan says premium is "recommended" for that engine — automaker code for regular is OK, but you'll only get the advertised power on premium.

If the price difference between regular and premium grew to $1, Martschenko says, "Then I might consider trading down" to regular.

Guilt plays a part

Some people feel almost guilty, as if they are abusing their cars, when they don't burn premium, says gasoline retailer Jay Ricker, president of Ricker Oil of Anderson, Ind., which operates 28 stations. "They go all the way down to 87 (octane), but maybe every fourth tank they put in the good stuff."

Sam Turner has seen the appeal, too. He's president of Favorite Markets of Dalton, Ga., which operates 139 outlets in three states.

He recalls visiting one of his stations during a price war with a nearby station, which had cut the price of premium to just 4 cents more than regular, instead of the usual 20-cent difference.

"A customer was waiting and asked me if I was going to match the guy across the street. I said, 'Yeah,' and he said, 'Good. For 4 cents, I'm gonna buy super.' "

Contributing: Barbara Hansen

China And The Deepwater Horizon: Oil’s Inexorable Move To $100

Again the oil stories are adding to the INCREASE in the price of oil headed  to $100.00 barrel !!!!!!!!
THESE ARE THIEVES AND CROOKS AND THE MARKETS ARE SIMPLY BEING MANIPULATED !!!!!!!
ALL YOU HAVE TO DO IS LOOK AT THE NEW EXXON AND CHEVRON QUARTER EARNINGS !!!!!!!
BILLIONS .........BILLIONS............BILLIONS............BILLIONS IN PROFITS !!!!!!!
THIS IS NOT SUPPLY AND DEMAND, THIS IS MANIPULATION AND SPECULATION !!!!!
THEY LIE !!!!!!!  STRIKEBACKAMERICA.COM !!!!!!!!

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Oil trades up near $87 today, and it is bound to move toward $100 this month. The estimates for the Deepwater Horizon incident now range as high as 100,000 barrels a day if the pressure from crude moving from under the ocean floor breaks off another section of pipe.

Some experts expect the slick to hurt or shut down production from larger refineries along the coast of Mississippi, Alabama, and Louisiana.  Bloomberg BusineessWeek reports that the spill could also affect Valero (NYSE: VLE) and Royal Dutch Shell. Each operates large refining operations which sit on the Gulf coast.

The BP spill comes at a time when the US economy has begun to stage a moderate rebound. And, the need for crude imports in China has moved up sharply. The People’s Daily recently reported that “Figures from the General Administration of Customs show imported oil in December hit a record 21.3 million tons, pushing the country’s total oil imports last year to 204 million tons.” China’s GDP will grow at 10% to 11% this year by most estimates. That will only raise the nation’s need for oil produced outside its borders.

At the time when oil demand will hit a peak higher, perhaps than it was before the recession, supply is likely to contract. OPEC shows no sign of increasing production. Nations in the cartel may believe that high oil prices will help them offset a period of low oil prices early last year. As crude dropped below $40, several Middle East countries said that they do not add to their national treasuries unless the price is above $70.

There should not be any hope that other oil-producing nation will fill the hole left by OPEC’s reluctance to raise output. Mexican fields are aging. Russian production could fall as much as 4% this year, Bernstein has estimated.

New and huge fields have been discovered in the seas off of Brazil, Western Africa, and in the Gulf of Mexico. but they are so far beneath the surface that it may take years to get them into production. The Gulf spill will delay indefinitely plans to drill along certain parts of the US coast line.

All of this is to say that just two factors–China and the Deepwater Horizon incident–could push crude prices higher. And, there are other factors in the background which are just as important to crude supply.

Chevron Earnings Rise Along With Higher Oil Prices

Now we have Chevron !!!!!!!
Again Billions in profits as we try to conserve GAS !!!!!!
We need to start someplace America !!!!!!!
Sop buying GAS FROM EXXON !!!!!! One step, One target at a time !!!!!!
They will never do the right thing on their own !!!!!!!

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NEW YORK (AP) - Chevron Corp. says its first-quarter profit more than doubled as oil prices soared over the past year.

The San Ramon, Calif. oil company reported income of $4.55 billion, or $2.27 per share, for the first three months of the year. That compares with $1.84 billion, or 92 cents per share, in the same part of 2009.

Revenue increased 33 percent to $48.18 billion.

Analysts had expected earnings of $1.94 per share on revenue of $53.25 billion.

Like other oil majors, including Exxon Mobil, Chevron's results were boosted by a surge in profits from its exploration and production operation. The company's refining business, however, continued to struggle to pass higher crude costs along to customers.

Exxon Earnings Jump 38%, Miss Estimates

With all our conserving the thieves make a 38% increase in profits !!!!!!
All their profits are all in the BILLIONS now.  FIGHT BACK AMERICA !!!!!!!!!!!!!!!!!
THEY WILL NEVER STOP STEALING UNTIL THEY ARE FORCED TO !!!!!!

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Exxon Mobil Corp. (XOM) said Thursday its quarterly profit jumped 38 percent as oil prices rose in the first three months of the year.

That marks the first year-over-year increase in profits for Exxon since it posted an all-time record of $14.83 billion in the third quarter of 2008.

Still, earnings remain significantly below that level. During the first three months of this year, the Irving, Texas, oil giant had a profit of $6.3 billion, or $1.33 per share. That compares with $4.55 billion, or 92 cents per share, in the same period last year. Two years ago, Exxon earned $10.89 billion in the first quarter.

Revenue jumped 41 percent to $90.25 billion. Analysts had expected earnings of $1.41 a share on revenue of $96.41 billion.

Exxon's profit relied heavily on its exploration and production of oil and gas. Oil prices surged over the past 12 months, jumping from a low of $33 a barrel in the first quarter of 2009 to more than $80 a barrel this year. The company responded to the rise in price by pumping more from the ground, boosting production 4.5 percent from the first quarter of 2009.

Natural gas prices flattened during the quarter, however. Exxon said increased natural gas production boosted profits by $190 million nevertheless.

Exxon said it plans to complete its acquisition of natural gas producer XTO by the end of the second quarter.

Overheated Oil Prices May Threaten Economic Recovery

New Threat to Economic Recovery. What a joke someone finally writes a story on this.
We can not and will not recover in this country until we reign-in Oil and Gas.
Government, Big Business and Wall Street will never voluntarily do the right thing !!!!!!!!!!!!

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With crude oil prices sloshing around at $85 a barrel, a new reality may be setting in that could threaten the recoveries of the world's major economies, according to the International Energy Agency's monthly oil market report, which was released Tuesday.

The IEA noted that crude oil futures hit 18-month highs earlier in April, as expectations rose regarding an economic recovery and stronger demand for oil. That said, the agency is wringing its hands over concerns that the oil market remains overheated.

"Underlying concerns remain that oil markets are overheated with WTI and Brent both recently trading around $85/bbl," the IEA stated in highlights of its report. West Texas Intermediate (WTI) and Brent are varieties of crude, both of which are used as benchmarks in setting oil prices.

Goldman Sachs, for example, is forecasting that crude oil could rise to $94.50 a barrel in the next three months and as high as $99 in 12 months. But the investment firm has a different take on the situation and believes an economic recovery could support such prices, which have seen a 25% increase over the past two months.

"Ultimately, things might turn messy for producers if $80-100 (per barrel) is merely seen as the new $60-80 (per barrel), stunting economic recovery while prompting resurgent non-oil and non-OPEC supply investment," according to the full IEA report, cited by the Associated Press.

EDITORIAL: Obama surrenders gulf oil to Moscow

THE RUSSIANS ARE COMING AND OBAMA IS GOING TO HELP THEM!!

Washington Times Editorial -03/18/2010

The Obama administration is poised to ban offshore oil drilling on the outer continental shelf until 2012 or beyond. Meanwhile, Russia is making a bold strategic leap to begin drilling for oil in the Gulf of Mexico. While the United States attempts to shift gears to alternative fuels to battle the purported evils of carbon emissions, Russia will erect oil derricks off the Cuban coast.

Offshore oil production makes economic sense. It creates jobs and helps fulfill America's vast energy needs. It contributes to the gross domestic product and does not increase the trade deficit. Higher oil supply helps keep a lid on rising prices, and greater American production gives the United States more influence over the global market.

Drilling is also wildly popular with the public. A Pew Research Center poll from February showed 63 percent support for offshore drilling for oil and natural gas. Americans understand the fundamental points: The oil is there, and we need it. If we don't drill it out, we have to buy it from other countries. Last year, the U.S. government even helped Brazil underwrite offshore drilling in the Tupi oil field near Rio de Janeiro. The current price of oil makes drilling economically feasible, so why not let the private sector go ahead and get our oil?

The Obama administration, however, views energy policy through green eyeshades. Every aspect of its approach to energy is subordinated to radical environmental concerns. This unprecedented lack of balance is placing offshore oil resources off-limits. The O Force would prefer the country shift its energy production to alternative sources, such as nuclear, solar and wind power. In theory, there's nothing wrong with that, in the long run, assuming technology can catch up to demand. But we have not yet reached the green utopia, we won't get there anytime soon, and America needs more oil now.

Russia more sensibly views energy primarily as a strategic resource. Energy is critical to Russia's economy, as fuel and as a source of profit through export. Russia also has used energy as a coercive diplomatic tool, shutting off natural gas piped to Eastern Europe in the middle of winter to make a point about how dependent the countries are that do business with the Russians.

Now Russia is using oil exploration to establish a new presence in the Western Hemisphere. It recently concluded four contracts securing oil-exploration rights in Cuba's economic zone in the Gulf of Mexico. A Russian-Cuban joint partnership will exploit oil found in the deep waters of the Gulf.

Cuba has rights to the area in which drilling will be conducted under an agreement the Carter administration recognized. From Russia's perspective, this is another way to gain leverage inside what traditionally has been America's sphere of influence. It may not be as dramatic as the Soviet Union attempting to use Cuba as a missile platform, but in the energy wars, the message is the same. Russia is projecting power into the Western Hemisphere while the United States retreats. The world will not tolerate a superpower that acts like a sidekick much longer.

OPEC's Business Model: Sit Back and Let the Money Flow In

Wake up America !!!!!!!!!!!!!!!!!!!!!! What does it take to understand we will forever be under the thumb of these people out of stupidity on our part and corruption of BIG BUSINESS and NO LEADERSHIP in this country !!!!!!!!!!!!!!!!!!!!!!!!!

OPEC, producer of about 40% of the world's oil, is back in the catbird seat, once again. Now, you're probably thinking, "When hasn't OPEC been in the catbird seat?"

True, when you're sitting on a considerable portion of the modern world's most important commodity, it's hard to ever argue that the deck is stacked against you, but these are especially advantageous times for OPEC.

Consider this: For the next year or two, and perhaps for longer, OPEC's "business model," if you will, doesn't have to adjust at all, and revenue is still likely to rise. Most important, OPEC can keep production targets the same, and it probably will still record impressive year-over-year increases in revenue. During these times of tremendous change, tech-based and otherwise, how many businesses, large or small, can make that claim?

Two Costly U.S. Policy Errors

And the reason OPEC can relax and let the dough roll in? The actions and inactions of the U.S. that have, remarkably, helped keep the price of oil at historically high levels, despite the worst global recession since the end of World War II. True, oil prices did plunge to about $35 per barrel during the financial crisis's acute stage in December 2008, but they recovered roughly in sync with healing credit markets. Oil moved above $50 in the spring of 2009, then above $70 in the summer of 2009 and have basically remained in a $70-$80 range ever since.

And that $70-$80 price is well above oil's 150-year average of about $25-$30 per barrel.

The chief U.S. action that caused this ? Clearly, the weak dollar has artificially boosted the cost of oil. Since oil is priced in dollars, the price tends to rise when the dollar falls, and the dollar has fallen considerably in the past decade. In 2000, it took only 84 cents to buy 1 euro. Today, it takes $1.35.

What's the primary factor in the dollar's decline? The U.S. budget deficit. In 2000, the federal budget was in surplus. The 2001 Bush income tax cut, senior citizen drug program (unpaid for), spending for the Iraq and Afghanistan wars (unpaid for) and the recession ended the era of balanced budgets and started a new era of debt. Institutional investors have bid the price of dollars down, pushing oil's price up.

Inability to Cut Back

The chief nonaction? The inability of the U.S. in 2001-2008 to systematically reduce its consumption of oil used for transportation. The Bush administration opposed increasing CAFE (corporate average fuel economy) standards, and basically adhered to a free-market vehicle efficiency stance. Market demand would determine whether Americans would drive fuel-efficient vehicles or gas guzzlers.

The result? Americans increasingly opted for gas-guzzling SUVs and larger vehicles -- not a problem when gasoline is $1.50 or $1.85 a gallon, but a more serious issue for family budgets when gasoline is $3 or $4 a gallon. The decade's legacy? A larger U.S. trade deficit due to an increase in imported oil, and no appreciable reduction in the nation's oil consumption for transportation.

Further, when combined, that weaker dollar and still-high U.S. per capita oil consumption for transportation were more than enough to lead the nation to the really unusual circumstance of high oil prices -- $50, $60, then $70-a-barrel oil -- during a recession. That's even as gasoline demand remained sluggish in 2008 and 2009 after millions of drivers were taken off U.S. highways and roads due to layoffs and millions of others simply realized they needed to drive fewer miles.

OPEC Is Ready to Reap a Bigger Bounty

What's more, OPEC's bonanza and preferred circumstance stemming from the above policy errors are nothing short of extraordinary. Contrast the December 2008 $35 bottom in oil prices with the 1999 slump, during which prices fell to a low of $17 per barrel (about $22 in 2010 dollars) amid the Asian financial crisis. In 199, the price dropped so low it forced the closure of high-cost wells and drove other players out of the market.

Further, in the immediate years ahead, given the dollar's value and current U.S. oil use, OPEC stands to reap an even bigger bounty -- without increasing production -- as oil prices are likely to trend higher as the U.S. and global economic recoveries progress and global oil demand rises. The U.S. Energy Information Agency sees OPEC earning $767 billion in net export revenue in 2010, up 33% from $573 billion in 2009, and rising to $823 billion in 2011.

Sit tight and just let more revenue roll in for the same production. Talk about lucrative business models.

OPEC ministers, at their just-completed March meeting, had to practically intentionally frown to avoid appearing gleeful with the current state of the oil market. Saudi Arabian Oil Minister Ali al-Naimi called current prices "beautiful" and said there was no need to increase production. Angolan Oil Minister Jose Maria Botelho de Vasconcelos said prices between $80 and $90 a barrel are good and above $90 would be too high.

A beautiful $80 oil price? It's beautiful if you're a producer nation, not if you're a consumer nation. Moreover, for the U.S., $80 oil means reduced disposal consumer income, higher fixed costs for businesses, more oil-price-based inflation, lower GDP growth and, above all, a massive transfer of wealth from the U.S. to the oil-producing nations it buys boatloads of oil from. And as most investors know, oil shocks triggered two U.S. recessions, in 1973-74 and 1979-80, and were a factor in two other cyclical declines, in 1990-91 and the most recent recession.

Will OPEC Squeeze the World Again?

Of course, if global oil demand continues to rise, OPEC will have to think seriously about increasing production -- the group has about 4 million barrels per day of spare capacity. But investors, and especially U.S. motorists, should understand this: Historically OPEC has shown a tendency to push the price of oil to the maximum the market will bear, and then some.

What will OPEC do if/when oil rises to $100? To $120? To $140? Again, if history is any indicator, it won't preemptively increase production to drop prices, but it will see how the U.S. economy functions with gasoline at $3.50 per gallon, then at $4, and then at $5, and so on.

In other words, chances are good that OPEC will -- again -- naturally seek to maximize its revenue first, and respond to U.S. and global economic conditions second. And if such a scenario plays out, the U.S. -- the world's largest and strongest economy -- will have once again been tipped into a recession largely because of its dependence on and vulnerability to imported oil.

And as you might sense, "vulnerability to imported oil" and "world's largest and strongest economy" are characteristics that won't walk in tandem indefinitely. One of them has to give way.

Which States Pay Highest Gas Prices

These Analysts are thieves and crooks that help steal from us at the gas pumps every day.
Wake up America !!!!!

They will never do the right thing. There will always be an excuse to keep gas and oil high to keep their profits.

Everyone grumbles when prices at the pump rise, but some drivers pay more depending on where they live. A new study shows how gas price spikes hurt the wallets of drivers in some states more than in others.

Read more: Which States Pay Highest Gas Prices