Why nobody, even Santorum or Romney, can cut gasoline prices

I see the GOP is going to go after Obama for his abject failure to bring down the price of gasoline. The sad part is, this tactic might work — for reasons that escape me, the American public seems locked into believing a “cause-effect” accusation when it comes to politics and gasoline prices.

But Obama isn’t at fault, any more than George W. Bush was when gasoline, in his administration, hit $4 a gallon, or when it dropped back down to $2.

Gasoline is a world commodity, its price is set globally, the president doesn’t control the globe. It really is that simple.

Sadly, the media in this country don’t help because they are locked into the “he said, she said” method of reporting, when the facts of the oil world on this planet don’t match up.

A good analysis of this (click) is at the Media Matters web site. This really is a problem of how the media operate — the fantasy of “objective” reporting means that critics of Obama can blame Obama for this and get quoted just because, well, they said something.

The truth: The price of gasoline is based, in part, on the world price of oil and part on how the supply in this country is manipulated, both by refiners and by speculators. There is nothing Obama can do about either one of those things without a government takeover of world markets or oil companies, and I suspect the GOP would oppose those moves.

The XL pipeline will have only a very tiny impact on oil supply, as would more drilling in this country (and there is a lot more drilling going on in this country). The amounts of oil that can be drilled in this country are too small to move the world supply, and if they were, the foreign oil cartels would simply cut their own production to keep the price of oil high.

People who say the oil produced inside the US is “our” oil are equally delusional. That isn’t “our” oil, it belongs to international oil companies that bought the right to drill it. They can, and will, sell it to whoever pays them the best price. If they couldn’t do that, they wouldn’t drill it, which means if Americans want oil, they have to bid against China to get it.

You want to really see the price of oil go up? All the GOP candidates are rattling sabers about Iran’s nuclear industry. Would you care to even think about what the price of oil is going to do if we start a hot war with a nation that has the capability of closing the Straights of Hormuz?  Try $10 a gallon gasoline, overnight.

And, yes, the so-called “strategic” bombing of Iran’s nuclear facilities will start a hot war. We hear that they would be told this isn’t a war, just an effort to make them stop building nukes, but would Iran see that? Would we if someone did that to us?

Not a bet we can afford to take.

I saw where one of the candidates rattling those sabers — I think it was Gingrich — was promising gasoline at $2.50 a gallon if elected. That sounds so much like Hoover’s “chicken in every pot” promise it ought to scare anyone. It’s both irresponsible and impossible for anyone to make such a promise.

But it’s an election year, so they will and, sadly, the media will report it with a straight face.

Share
This entry was posted in Blogging the Rambler. Bookmark the permalink.

12 Responses to Why nobody, even Santorum or Romney, can cut gasoline prices

  1. Myth Buster says:

    ANWR (Alaska) has an estimated 200 year global supply and a pipeline.
    BAkken Oil Field has estimates ranging from 250-500Billion Bbls.
    Gulf of Mexico, especially the Macondo Prospect in Mississippi Canyon has an estimated volume of Mt Everest under 700 psi and multiple pipeline outlets.
    Let’s at least recognize gas prices are completely arbitrary and our enemies are inside our own gates. Supply and demand has nothing to do with oil prices; heck Qaddafi in Libya and Chavez in Venezuela sold gas at nominal prices of 11cents gal.

  2. kafantaris says:

    Iran faces a delicate issue. On the one hand it wants to show the world all it’s got and put it at ease, while on the other hand it fears that such show ‘n tell will give its enemies a roadmap to bomb it.
    Saddam Hussein faced a similar dilemma ten years ago. Though he wanted the world to know he had nothing to hide, he also wanted to bluff his archenemy Iran into believing Iraq still had WMD.
    Bluffing did not go well for Saddam, and it might not go well for Ahmadinejad.
    But since the price tag for ridding Saddam proved high, maybe we ought to reflect what we are asking of Iran now. On the eve of a threatened attack, we are asking it to take us to the depths of its arsenal and show us all it’s got.
    Such great expectations are a sign we have been talking to our friends too long and are in need of a broader perspective. Exactly when was the last time we asked Pakistan, India, China or Russia to show us their arsenal?
    “But those countries are not advocating the destruction of Israel.”
    True, but Israel is not a thorn on their side either.
    Surely, however, we can see beyond the hyperboles and figure out their underlying purpose. Or have we forgotten that not all Iranians are thrilled with Ahmadinejad?
    He sure hasn’t.
    Nor has he forgotten that that his countrymen hate Israel even more. So he tells them that Israel will be wiped from the face of the earth. Expectantly, this nonsense unites them against a common enemy. It is even a diversion from the misery and isolation brought on by his theocratic regime.
    Quite clever work by Ahmadinejad — and not a rial spent or a bullet fired.
    So why are we letting the crazy talk about destroying Israel get us all worked-up — to the point of turning the world topsy-turvy again.
    Can we not see the desperate attempts of an unpopular regime simply trying to hold on?

  3. Randy Tippets says:

    Most of us are well educated about our energy situation by now, especially the reasonable in the independent voting group. I know right or left wing propaganda by now.
    The Chinese are drilling in the gulf around Cuba and anywhere they want. Brazil runs their cars completely on sugar cane alcohol and sells their oil to us and their offshore wells they dig are for this good old. The environmentally nuts in this country are stupid. You tell us to use 20% less energy, but then the govt. and teachers want more every year of shrinking pie so you put your greed on the backs of people who have not worked since the last year of that spoiled rotten incompetent baby Bush president we had who used our military and blood to secure the oil of Iraq for Hallaburton. Who do you think your kidding.

  4. ctrentelman says:

    these numbers are delusional, myth. where did you get them?

    real numbers: In 1998, the USGS estimated that between 5.7 and 16.0 billion barrels (2.54×109 m3) of technically recoverable crude oil and natural gas liquids are in the coastal plain area of ANWR, with a mean estimate of 10.4 billion barrels (1.65×109 m3), of which 7.7 billion barrels (1.22×109 m3) lie within the Federal portion of the ANWR 1002 Area.[17] In comparison, the estimated volume of undiscovered, technically recoverable oil in the rest of the United States is about 120 billion barrels (1.9×1010 m3).[24] The ANWR and undiscovered estimates are categorized as prospective resources and therefore, not proved. The United States Department of Energy (DOE) reports US proved reserves are roughly 29 billion barrels (4.6×109 m3) of crude and natural gas liquids, of which 21 billion barrels (3.3×109 m3) are crude.[25] A variety of sources compiled by the DOE estimate world proved oil and gas condensate reserves to range from 1.1 to 1.3 trillion barrels (210 km3).[26]

  5. Myth Buster says:

    Bakken: 200-500 Billion Bbls.
    US Continental Shelf: 100+ Billion Bbls Oil; 650 Trillion Cu Ft Natural Gas.
    Gulf of Mexico, Macondo Prospect: Estimates are enormous in both Oil and Natural Gas
    Colorado Shale Oil: Estimates are 1/2 the Earth’
    s supply lies within 150 miles of Grand Junction
    275 Billion Tons of Coal estimated in the US.
    Jesus said our enemies are the men of our own house (Mat 10:36; Micah 7:6) Why don’t you believe Him?
    Transporting 40% of US oil through the Straits of Hormuz is insane and completely unnecessary

  6. Owain says:

    Charles Trentleman, in a futile attempt to repeal the law of supply and demand.

  7. tmone says:

    Im sure you were stickin up for Bush when Pelosi and Obama and the rest of the left were attacking Bush, right Charles?

  8. the truth speak it you do, I love to hear the truth, Diatoms make oil every second more than humans could ever use Diatomaceous earth.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>