Why are prices at the pump so high?
DeVito. Supply, demand and profit-seekers likely exploiting current world events to their benefit and gain. Many claim that refinery capacity, unexpected economic growth in China and India are the prime culprits. However, it should be noted that earlier this decade we weathered a refinery breakdown, political instability in Nigeria and Venezuela, supply disruption from the Middle East and the largest terrorist scourge on our soil. All during a period of similar economic circumstances, and we did not see the record-breaking prices we are having today. Further, the circumstances today are not so vastly different from one year ago to warrant increasing prices. Last year, in meetings at the White House and at the Department of Energy, we spoke of a fear premium on a barrel of oil. Essentially, we were of the understanding, at that time, that Wall Street was hedging against the possibility of a catastrophic supply disruption. Today, that fear premium is nearly double than a year ago without
