Simple economics. You've got money? You got oil.

It is basic economics 101. The simple theory of supply and demand and this case the supply goes to the highest bidder. And the highest bidder in this basic case study is, China.

Obviously China is willing to pay a higher price for oil than we are. Oil that is sold on the world market and sold by market speculators buying and selling oil on the Global commodity market. Speculators who are completely indifferent to whoever is the buyer bidder or who is the lower bidder. And we are talking about oil no matter where it comes from. From a rig in Oklahoma, from an ocean rig in the gulf, or down from a pipeline from Canada. Even pipelines undulating down through the hinterlands of Alaska. All go to the world market. It’s like having a world market auctioneer right at the oil head site. Dribbling, babbling bids and selling to the highest bidder.

So, if you want oil and especially domestic oil to stay in America, you have to be the highest bidder. Which often means higher gasoline prices. The person with the top price takes the oil. America has to pay higher prices than China. Higher than India. Higher than Japan and on and on.

Do you see the principle here? You’ve got money? You’ve got oil. No matter where it comes from. Comprender senor?

How we get oil and how much it costs per gallon has nothing to do with where we get oil. It has nothing to do with President Obama. It has nothing to do with Drill baby Drill. It’s all in the world economics. Highest bidder gets the kitty. Takes the whole pot. Wins the first place prize. Winner takes all. Simple, basic, freshman level economics. End of lecture.