Critics of the oil industry argue that the true cost (the total costs both visible and hidden paid by western societies to obtain and use oil) of oil and subsquently gasoline are much higher than wholesale oil markets or retail gasoline prices reflect. Some estimates put the real cost of gasoline near $10.00/gallon. The hidden oil/gasoline costs consist mainly of tremendous spending on military protection of world oil supplies. The U.S. alone spends well over $100 Billion per year to ensure the free flow of oil from volatile regions of the world. The argument comes down to this: if such hidden costs were reflected in the wholesale and retail prices, instead of being subsidized by the general taxpayer, oil and gasoline would be far more expensive than they are today. This hidden cost has the effect of providing oil and gasoline a competitive market advantage over other alternative energy schemes.

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