Skip to comments.Gingrich: Talkin' TWO DOLLAR Gasoline
Posted on 02/14/2012 5:33:18 AM PST by Reaganite Republican
Gingrich Energy Plan
|It can happen again...|
Didn’t Bachmann promise $1.80 gasoline?
This kind of pandering goes nowhere, as no one really believes it.
If prices rise too much, look for Obama to pull a Clinton and release oil from the Strategic Oil Reserve to lower prices — in time for the November election.
Production goes up > prices go down > millions more people in China and India can buy gas > demand goes up > prices go up.
And how does Newt plan to prevent OPEC from regulating production to keep price where they want them?
I am in favor of increased production for economic security reasons. But it is foolish to think a US president can control the price of global commodities - there are too many factors beyond his control. This is political pandering.
The only problem is we are Producing far more Gasoline than we are using, in fact we are experiencing the Highest percentage of Refined Motor Fuels being exported to other countries than ever before. So cheap Gas is not the problem, we already have too much. The problem is Government and the Fed STEALING THE VALUE OF YOUR ASSETS AND MONEY thru Inflation and Regulation. And since there is virtually No Manufacturing in this country anymore, we really do not need the fuel to go back and forth to work, now there could be a case made to ease the price of Fuel in an effort to make it easier to go to the Government Buildings to get Food Stamps, Housing Vouchers, Cell Phones, Cash Aid, and Welfare Checks, but that is all.
When he entered office it was 1.80 per and then he closed down the Gulf.
Pray for America
If we would take advantage of the resources we have in this country, we wouldn't need anything from OPEC, and their demand would go down--plus we could actually export our own oil and gas.
Yes it is pandering just like the 40 % rollback of Obama’s policies on the first day in office. unrealistic. but good ideas.
I don’t recall if it was the threat of opening up the reserves, or drilling to increase domestic oil production that G.W. Bush threatened once upon a time, and of a sudden the price of gasoline at the pump dropped like a rock.
Do you all recall that incident?
I would think that were Palin, Gingrich, or some other conservative with an attitude in the drivers seat again, and with a compatible Congress that a whole lot could happen simply with nuance, or innuendo, much less cooperative congressional legislation.
Remember Nixon’s and Carter’s Idea of Price freezes ?
I would have to see some hard numbers regarding reserves and production capacity.
Here is also something to consider - how is the President going to keep that oil in America? It is a global market run by global companies. If they can sell it for more in China then they will. Cheap gas will simply increase global demand.
Which raises another point - what reason do the oil companies have to go along with Newt’s plan?
Yeah, yeah, that's all well and good, but what's his position on diesel...you know, the stuff that fuels the transportation of goods to market and food production and, um, my pick-up...
REAGAN crashed the price of gasoline!
He even did a deal with the Saudis, he sold them arms and THEY opened up the spigots
When the price of a bbl of oil fell to $20, the USSR’s only real source of hard currency dried up... pushing them on towards their inevitable collapse
And is the Reaganite in this race... that’s what Art Laffer says, good enough for me then
It easy to influence the market in the very short term - it is another to make fundamental changes to the market that produce permanently lower prices. The President doesn’t have that power.
And why would one think that the oil companies want permanently lower prices?
Channeling Michele Bachmann?? Intriguing.
Channeling Michele Bachmann?? Intriguing.
I have always though he should say $1.00 gas....
Or at LEAST say “get to” upon full production.
I’m not at all excited about $2.00
Next, remove all the heavy taxes on the product and fund roads like they are being funded for now, with regular tax revenues. The “road tax” on fuel has never worked, and not one dime of that tax ever went to build or repair a road.
Finally, the very biggest thing they can do, is actually approve a refinery or Nuclear Electric plant or two to be built, and remove that massive restriction to supply.
And yes, absolutely, a President has massive powers at hand to make this happen immediately through emergency executive order.
This alone would cause the economy to start to grow.
Each dollar of gas you burn into the air produces nothing
And the $50 gas tankful means you didnt spend $25 on a baseball mitt or food or a hammer.... etc...
It is ‘broken glass’. The discreditted concept that if you break someone’s window it spurs economic growth because the owner then has to buy new glass and the glass producer gets money and he buys food for his kids and so the grocer gets money and he buys goods to sell so the farmer gets money etc etc...
But this fallacy ignores that the $25 would have been spent on SOME THING ELSE, and instead goes to replace the glass. If you constantly break and repair the glass you end up broke and with nothing to show for your money except a glass window- instead of having the originall glass window and a hammer and a baseball mitt, etc etc.
The same fallacy that made Odumbass in the White House think “Cash for Clunkers” would generate growth when they destroyed all the clunkers that were turned in. (some of them perfectly good and usable.)
Attorney Orly Taitz tells Newt...obama not qualified to pick tomatoes!!!...
I don’t know when this was written, but an average price of $4.09 per gallon is way higher than what I’m seeing now.
To remain credible we need to correct things like that before publishing them.
‘unrealistic. but good ideas’
That is exactly what they all said when Gingrich did all those wonders, but he did it!
Wow, a couple of Romney plants. Nice try but we’re not buying what you’re selling.
The Federal excise tax is 18 cents per gallon - Federal taxes are presently 5% of the retail price. He can cut federal taxes to zero and still not make much of a difference.
I understand the president has enormous domestic powers. But oil is a global commodity - it is foolish to think the president can influence much control over global oil prices.
Cheap gas means more demand. More demand means higher prices. Basic economics.
Newt needs to get Sarah and Michelle and Perry and Cain and all the others to get out in public for him the day before super tuesday, or Mitt might take it.
We need to contact anyone we know who knows them to tell them that AND Make it a point to target the day before super tuesday for US to make a supreme effort
My current favorite ticket would be Gingrich/Santorum
I preferred Bachmann’s gas price pledge. LOL
.....”The President doesnt have that power.”
It’s far more than just drilling, and increasing gasoline production. It’s the President and Congress together getting government the “H” out of way, and returning our economy back to sanity, people working again will of course cause the other side of the effect Gingrich is talking about. It isn’t the oil companies that dictate what the price will be in this kind of market. It is the freedom of the free market, the overall market, and government getting the Hell out of the way that causes what the price will be.
The oil companies will charge what they must to maintain a profit, and remain in business in whatever economy exists at any given time. If employment ramps up once again, and the economy improves it will be strongly achieved by access to cheap, or say cheaper energy supplies.
Gingrich is right in saying what he is saying as he intends to get the economy moving by reducing, or cleaning out the Federal government of the infestation of the impaired minds of the Leftist block. Kinda like running a balloon through blood vessels to clean out all the muck so the blood of the free market can flow again.
I’m sayin’ don’t just focus on the oil companies alone, and go negative on what Gingrich, or Palin are saying. It’s the overall picture of a cleaned up small Constitutional Republican government free from stupid Leftist obstacles, and a free market that will bring back $2.00 a gallon gasoline.
When we are energy independent, we will drive down the world oil price, that will drain their wealth and bring them to their knees. Meanwhile, we have booming econmy, propsperity for all.
Yes the pres can effect a quick change. See how obozo stops the Keystone pipeline and causes the loss of thousands of jobs, and results in loss of potential energy independence!?
Nixon imposed price controls specifically to fight inflation - those price controls contributed to lower domestic oil production and gas shortages during the 1979 energy crisis. Carted dismantled those price controls in phases starting in 1979 - Reagan removed the last controls on domestic oil in 1981.
The lesson learned was that price controls reduced production and led to shortages. There is a certain cost associated with drilling and refining oil that varies wildly depending on where it is located and its quality. At lower gas prices, you may never recover your production costs from certain oil fields - it would make more economic sense to leave the oil in the ground until prices went up.
I would think if we are exporting oil, there will be more supply than demand, or supply will equal demand. With competition, the oil-producing cartel won’t be able to dictate the price. Then the price will be stabilized to a certain level.
Written this morning, current price report linked above
I think you misunderstood my comments on the role of the oil companies. They will do everything in their power to balance production and prices to optimize profit. That is what the free market is all about. The problem with Newt's comments is that he has no way of knowing if the free market will support $2 gas.
As for the government getting the hell out of the way, lets not forget that the oil industry receives major subsidies from the government:
“The United States government provides a large subsidy to oil companies, with major tax breaks at virtually every stage of oil exploration and extraction. Revenue attributable to capital investment, including the costs of oil field leases and drilling equipment, are taxed at an effective rate of nine percent, which is a much lower rate than the 25% rate for general business taxes and lower than the taxes of virtually any other industry, according to a 2005 study by the non-partisan Congressional Budget Office. For example, while the Deepwater Horizon oil rig was registered in the Marshall Islands, since registering off-shore lowered the U.S. tax liability, the U.S. government was giving the rig’s owner, British Petroleum (BP), a major tax break when BP leased the rig: 70% of the rent was written off in the form of a tax break used only by the oil industry, for a tax deduction of more than $225,000 per day from the day the lease began.”
Think what would happen if those subsidies were removed and oil companies passed those costs on to the consumer. Government polices are presently acting to keep gas prices below market value.
A move to a true free market approach might actual increase the price of gas.
I would have to see some hard numbers regarding reserves and production capacity.
Did around in the following link and you’ll probably find some numbers.
We still import 47% of our oil - and that is after domestic oil production soaring to a 40 year high.
It is not certain that we will ever be a net-exporting country when it comes to oil. History shows that as oil prices decline then domestic production declines - a lot of American oil is more expensive to extract then Middle East oil.
Additionally, increased domestic production would be absorbed by a growing US economy and population.
We will never be able to challenge OPEC on production - our know oil reserves are tiny compared to the rest of the world. We will be dependent on foreign oil for a long time unless we fundamentally change our economy to slash oil consumption.
Subsidies!? This is talking about government controls in the form of government taxation, and government dictated breaks in government taxation. “Here I’ll take your arm, and your leg, and give you back a finger.” The finger they give back is Obama’s favorite. Such a deal.
That too has to all be reworked. Free Enterprise works best when it’s free to be enterprising.
I’m outta here probably for the rest of today until this evening. Have a nice day, and thanks for the interesting responses.
“End the ban on oil shale development in the American West, where we have three times the amount of oil as Saudi Arabia.”
Americas oil shale reserves are enormous, totaling at least 1.5 trillion barrels of oil. Thats five times the
reserves of Saudi Arabia! And yet, no one is producing commercial quantities of oil from these vast deposits. All that oil is still sitting right where God left it, buried under the vast landscapes of Colorado and Wyoming.
But what if we could safely and economically get our hands on all that oil? Imagine how the world might change. The U.S. would instantly have the worlds largest oil reserves. Imagine having so much oil wed never have to worry about Saudi Arabia again, or Hugo Chavez, or the mullahs in Tehran. And instead of ships lined up in L.A.s port to unload cheap Chinese goods, we might see oil tankers lined up waiting to export Americas tremendous oil bounty to the rest of the world. The entire geopolitical and economic map of the world would change and the companies in the vanguard of oil shale development might make hundreds of billions of dollars as they convert Americas untapped shale reserves into a brand new energy revolution.
“Yes it is pandering just like the 40 % rollback of Obamas policies on the first day in office. unrealistic. but good ideas”
Its not pandering at all. Rolling back executive orders can be done instantly and that is what Newt plans to do. Any agency that was created by an executive order (EPA) can be closed by executive order. Mitt and Rick cannot think of even one agency they can bear to part with. Newt will get rid of Dept of Energy and Dept of Educ for starters.
If you like the job Boehner and McConnell are doing you will love Romney and Santorum.
When we produce as much oil as OPEC.
Not sure why you would think I am a “Romney plant”?? But don’t let your emotions get in the way of fact, what I posted with regards to Refined Motor Fuel is absolutely 100% factually correct, If you really think I am a Romney plant, maybe you shouldn’t be taking bongloads at 5 in the morning or the least you could do is share with the rest of us. Now stick to the issue at hand, We do not need more Gasoline at this point in time, we have way too much and people are not buying gasoline at the rate we normally would see in a vibrant economy, that is why our EXPORTS ARE AT RECORD LEVELS (high) and our USAGE is ALSO AT RECORD LEVELS (Low). All of this can be verified with very little effort on your part, You do not even have to leave this site to find the answers but you must put the Bong down first and then actually open your eyes.
Are we really going to out produce Saudi Arabia, Iraq, Iran, Kuwait, Venezuela and the UAE? Plus all the non- OPEC countries like Russia, Norway and Mexico?
We are the number 3 oil producing nation in the world. We are also the number one oil consuming nation by a huge margin (3 times the consumption of China). Hence we also the number one importer of oil in the world by a huge margin.
We would have to double our production to reduce our imports to zero. Which means we would be producing twice what Saudi Arabia is producing right now. We would have to TRIPLE our production to equal just OPEC’s production.
That's true. But is that oil extractable at a cost which is consistent with $2 a gallon gas? I would need some convincing.
Gasoline prices did drop momentarily, as you note, down to $1.61 (I think I paid $1.49 at one point). We know how to do it — crash the world economy. Not sure that’s a good idea now.
Oil prices have to come down significantly to get to $2 gasoline. We could produce everything we know about in the U.S., and wouldn’t get $2 gasoline. In fact, if oil prices were low enough to get $2 gasoline, it wouldn’t be economically feasable to produce new oil in this country. Certainly not mile-deep deepwater wells in the gulf, or shale oil conversions in the midwest.
THe only way I can think of to get to $2 gasoline is if I take all my money and invest it in oil companies. Last time I invested in an oil stock, the price dropped to 95 cents. :-)
“But is that oil extractable at a cost which is consistent with $2 a gallon gas?”
How would you know if you don’t try it?
The shale oil is NOT the only source of energy unused in the US. If the drilling was freed from Obama’s diktats, hundreds of million barrels could be produced, making America independent of energy imports and who knows, one day even an energy exporter.
The free market will play its role. More American produced oil on the market will lower the gas price. Simple Simon.
I agree, however I would never promise that it would go down to $2, for lots of reasons already posted up-thread.
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