By

Dr. Sherman N. Miller

11/17/2007

I once asked the executive vice president of a specialty fabric company why they did not expand their production beyond their small product runs and he replied that they keep customers from getting more than five percent of their production because the customer will then have leverage on their business. When a customer buys over five percent of the company’s production this customer will command respect by senior management. How many suppliers do you think will disrespect Wal-Mart?

According to the June 14, 2007 CIA World Factbook reported through NationMaster, the United States consumes approximately 25 percent of the world’s oil. This high US oil consumption suggests that global oil producers and refiners should be treating the American consumers with a great deal of respect for a major hiccup in US oil usage could cause the collapse of the global oil market. A global economic depression may send some oil dependent economies in a tailspin; especially if the US consumption level drops to 15 percent of the world’s oil in a very short time period.

However, Americans are being treated by the global oil suppliers and company managements like they are economic chattel to be exploited by the disingenuous fall out of so-called adverse geopolitical events that suggest psychological oil shortages. What is disquieting is that everyone seems to forget that the US oil consumption is over twice that of China and India combined.

What is apparent is that the 2008 US Presidential Candidates will have to outline their plans for aiding and abetting a global energy price collapse. The current overbearing oil prices are nothing more than a national income tax collected by oil speculators. Surely, Presidential Candidates perceived as sidestepping the excessively high oil price issue are committing political suicide for people will surely come out to vote against candidates for whom they possess disdain. US Congressional candidates also ought to have plans for tackling the energy crisis or there may be another round of wholesale changes in the Congress.

It will be interesting to see if the Democrats seize this golden opportunity to grab The White House by offering the American people hope that high energy prices are not cast in stone. Democrats will also need to make the case that America’s leadership is not politically impotent in forcing changes in the global oil market pricing structure.