The rationale for such high tax burdens on oil products has shifted from, time to time. It used to be security of supply, or conservation based on perceived resource scarcity. Today it's global warming and environmental protection. Oil should lie viewed according to present realities. Those who propagate the issue of supply insecurity, the dangers of import dependence, and the perceived instability of the Arabian Gulf are ignoring realities.
Lets look at the facts.
A price increase or decrease, a shortage or over-supply, will affect all countries in the free market system. Today, the world political, economic and energy relations are more favorable than ever. So are the conditions in the oil market. The expanded oil reserves, the excess production capacity, and the transparent market should all ease the concern over supply security. Today, there is unused production capacity of 6 million barrels per day, almost half' of it in Saudi Arabia.