Editing 78-02-A5 (section)

= Oil =

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=== Transcript ===
Not too long ago I told of the editor of an oil industry trade paper who
had figured out that at 45¢ a cup (which he had paid) coffee was $600 a barrel
compared to $14 for Arab oil. Then he wondered why there were no Congressmen
clamoring about the high price of coffee, with the usual charges of monopoly,
withheld reserves and obscene profits.

I'm afraid most of us look at the familiar signs and billboards of the
major oil companies and find it easy to believe at least some of the tirade
against the oil merchants. With that in mind I decided to do some boning up.
I was surprised at what I found, and maybe you'll be too.

Try this one for starters. Since 1958 the cost of mailing a letter has
gone up 333%. The price of gasoline has only gone up 88%. Makes you wonder
about that new $10½ billion Energy department in Washington, doesn't it?

Senator Henry Jackson of Washington has found a few things in the oil
industry to criticize. But, if the price of gasoline had gone up as much in
his home state as those tasty apples they raise there, Washingtonians would
be paying $1.46 a gallon. Senator Muskie of Maine has had some unkind things
to say about the petroleum peddlers, but if gasoline had gone up in price to
match Maine lobsters it would sell for $2.85 a gallon. While we're at it let's
take the dollar itself (we won't be taking much). Over the last 40 years the
dollar has shrunk a little. It's worth a fraction under 26¢. But you can still
buy a gallon of gas for less than one of those 26¢ dollars.

High on the list of things the oil industry is accused of is that it enjoys
being a monopoly. Congress debates divestiture a bill to break up the major
oil companies. Now monopoly means domination of the industry by a few companies,
reduced competition and limited entry into the business by others.

Well that was my next surprise . There are more than 10,000 companies
competing with each other in oil and gas exploration and production; 133 companies
operate 264 refineries and more than 100 pipeline companies transport crude oil,
liquefied natural gas and refined products.

In the wholesale side of the industry there are 15,000 companies selling
petroleum products to over 300,000 retailers (90 percent of whom are independents).
Would it surprise you as it did me to learn there are more than 1500 different
brands of gasoline for us to buy? That's not much of a monopoly.

There is a direct ratio between increased production in America and energy.
Four million jobs are created for every billion barrels of oil found in this
country. I hope the new Department of Energy knows that because we'll need 19
million new jobs by 1985. That's five billion barrels of oil. 

This is Ronald Reagan.

Thanks for listening.
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=== Details ===
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<TR><TD WIDTH="150">Batch Number</TD><TD WIDTH="150">{{PAGENAME}}</TD></TR>
<TD>Production Date</TD><TD>01/27/[[Radio1978|1978]]</TD></TR>
<TD>Book/Page</TD><TD>[[Radio_Commentary_Books#Reagan.27s_Path_to_Victory|RPtV-257]]</TD></TR>
<TD>Audio</TD><TD></TD></TR>
<TD>Youtube?</TD><TD>No</TD></TR>
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===Added Notes===

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