$4 Gas

Several factors have contributed to the recent spike in gas prices. Primarily, Iran has responded to international sanctions by threatening to cut off oil shipments to European countries. Additionally, a number of aging refineries have been taken offline by American oil companies (just a coincidence that this is happening in an election year, right?), reducing the supply of gaasoline. Once more, American consumers are being held hostage to events in the Mideast and by the decisions of oil companies. We’ve seen this before. America fails to develop alternative energy sources, refuses to make the commitment to modern mass transit, and delays demanding greater efficiency from the auto manufacturers. Then gas prices rise because of events across the world, (or because oil companies manipulate the supply) and the cry is raised once again for greater domestic drilling. The truth is, more drilling will not reduce the price of oil, now or later. America’s domestic reserves aren’t enough to substantially increase the world supply. Aside from that, oil goes where the money is. Increasing domestic production does not mean that it stays here; it will go where the world market dictates. This, of course, does not prevent Obama’s opponents from blaming him and his policies for the increase, nor will the facts cause them to refrain from demanding more drilling. Whether this will stick as an election-year issue remains to be seen.

28 thoughts on “$4 Gas”

    1. Zapp, you clown, are you so ignorant that you imagine Obama controls gas prices? Really? Well then you must be a card-carrying Republican AND a FOX News faithful.

    2. You really gotta love that supply side of economics. Haven’t heard of the manipulation by the markets, have you? Obama does not control one cent of the gas prices. Read a little on what the future traders do to the price we are paying. Use less and the price drops on every commodity, Good reason the price has dropped in the last week.

  1. The last time we had this many oil drilling rigs was early in President Reagan’s first term. The question I have is: ‘How’s that free market, less regulations stuff working out for ya?’

    1. Most of the active domestic rigs are drilling for natural gas. Natural Gas prices are way down. Too bad we can’t get any investment in infrastructure that will let us drive clener Natural Gas cars because we are all so focused on renewables as the only answer. Compromise people! we need to invest in natural gas, nuclear and renewables.

  2. Its such as you read my mind! You seem to grasp a lot about this, such as you wrote the ebook in it or something. I feel that you simply could do with some p.c. to power the message home a bit, but instead of that, that is fantastic blog. A great read. I’ll certainly be back.

  3. Interesting this article is repeating what you hear in the main stream media…. it may be helpful to know the refineries were closed down to give the illusion of a gas shortage and to punish the locals by laying off the workers because the locals did not like the pollution coming from the plants. In the past 3 years 400 new oil wells have been drilled in America held interests. America has more oil wells that the rest of th world combined. the Koch brothers bought 3 massive tankers filled them up with petroleum products, and parked them just outside of American controlled water to produce a oil shortage. Well street is exporting 2/3 of our oil supply and gasoline, petroleum products and then hedging bets on a oil shortage to keep the prices high. Yes is is complicated and is not the simple supply and demand that the mainstream media tries to give you.

    1. Chuck, you’re being a little sloppy with the facts. First, we’re a net exporter of petroleum products (post-refining), like gasoline, but we’re an importer of petroleum – 50% of our petroleum is imported. There’s an important difference between the two. I’m not sure what to make of your assertion that refineries are deliberately closing plants to “punish” the locals. They’d be willing to give up big profits just out of spite? A related note – many people talk about the fact no new refineries have been built in decades, but few talk about how much our existing refineries have been expanded. As recent data shows, we refine more than what we need. The free market dictates that they can sell refined product to the highest bidder, and right now that’s not the US consumer.
      Lastly, 3 “massive” tankers are just a drop in the bucket. That might help out the koch’s bottom line, but it doesn’t affect global prices. Again, you were mixing petroleum and petroleum products in your statement on that.

      1. Giving up big profits? How about hoarding the cash (and tax break and subsidy gifts from the US Government) for a time of future “need”.

  4. Some ppl say drilling won’t help, but yet blame gas prices on the crises of 1 or 2 middle east nations. Does anyone see th the hypocracy in that? America drilling will drive the price from opec realizing the don’t have a monopoly on oil, increasing supply that yes will infact increase supply (funny how that works right?), and it will also keep almost 300 billion annually in our local economy that will help spur our economy and give more revenue to our spongy feds in taxes. And yes we refine more local oil than we bcs were still pumping the same amount that we did in the 70’s. Its amazing when ppl hate an idea so much they’llcome up with any excuse to knock it, against in the face slapping common sense lol

    1. Do you have any grasp on reality? American drilling won’t put a dent in world oil prices. The companies drilling that oil demand world price for it. Duh. They’re not giving it to you at some “Made in America” discount. BTW, take a little time and learn to spell.

      1. MoS, you know you can disagree with people without calling them names. Slinging mud usually doesn’t accomplish much.

    2. There isn’t any hypocrisy in blaming it on a few Middle Eastern countries. Their oil reserves are large enough to sway the market. Ours would not be even with increased drilling. Also, even if the oil were drilled here, it would go to the highest bidder, for example, China. It would not necessarily stay in the US and lower our prices here. They are not going to drill it here and then give us a discount because we’re Americans.

  5. You forgot one: speculation on Wall Street is driving the price of crude oil (and God knows what else) up and up.

  6. This is just a dumb nation, I’m afraid. And it’s going to be hard to keep the oil companies from drilling in the Arctic and ruining it as they did the Gulf. And for what? Maybe a few months’ worth of oil.

  7. Not a mention about oil speculation, and its effect on pricing? Other than that, you’re right, Ed: It’s an election year. This is what happened last time, if I remember my $4 a gallon history, and the times before that…

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