And On The 14th Day W Bush Said "Let There Be Oil" And Then Gas Prices Sank

JoeClarke.Net ^ | 02/24/2012 | JoeClarke.Net

[joeclarke]

That was the 14th of July, 2008 when President George W. Bush wisely lifted the moratorium on oil drilling, thus sparking the precipitous drop in the price of gasoline from an average high of $4.12 per gallon to a cellar dwelling low of $1.60 by November of that year.

Despite President Obama's promise of a newer, comprehensive energy plan, he has planned to do everything but open up drilling on the East Coast, West Coast, Gulf, and the Arctic.

When President Obama bragged on "More energy production under his administration than the last ten years," recently, he also failed to mention that any gains in energy production have been due to private not public land drilling. And, these energy gains were planned long before he was president, despite the fact the Democrats have fought exploration for over 25 years, at least. The Dems have been shouting for the longest time, "It takes too long - 5 years or more," to formulate a plan to become energy independent, so what's the use?" They have been stalling with this sort of garbage talk for over 25 years.

I am for the Keystone Pipeline, but to bake oil sands from Canada and convert it into usable energy is half as efficient as just drilling for the crude oil and extracting it nearly ready made for energy demands. We want a newer pipeline to extend hundreds of miles into the Gulf of Mexico, where 50 miles off the coast is a nearly infinite abundance of oil lying beneath the waves.

Obama's promise to "Shut down the coal industry," and "Skyrocket energy prices," has hit areas such as Ohio and Pennsylvania,where 5 coal plants were recently closed down. Remember the Alamo, Remember the Maine, and Remember the Danube - which has been frozen in Eastern Europe, where over 600 people have frozen to death for the lack of delivery of fuel supplies. Europe has been closing down coal plants at a much faster rate than the U.S. and are now paying the consequences.

President Obama's "Comprehensive Energy Plan," is still focusing on Green Solutions which have proven to be devastating to economies in Spain and other Euro countries. Yet, despite the Solyndra and other green debacles, the Environmentalists have convinced Obama to say "no" to expanding real energy exploration and development.

Below Are A Few Of Obama's No Zones.

[gunnyg]

OBAMA Oil sets $7 a gallon gas price target
MensNewsDaily.com ^ | March 3, 2010 | Roger F. Gay

Posted on Wednesday, March 03, 2010 8:33:00 AM by RogerFGay

To meet the Obama administration’s targets for increasing fuel taxes, researchers say that Americans will have to pay $7 for a gallon of gasoline; about 17 percent more than drivers in green-conscious and generally highly taxed Sweden.

In their study, researchers at Harvard’s Belfer Center for Science and International Affairs devised several combinations of tax increases to address 70 percent of the oil used in the United States. The combinations were selected to match fuel consumption reduction targets. Most of their models assumed an economy-wide carbon dioxide tax starting at $30 a ton in 2010 and escalating to $60 a ton in 2030. In some cases researchers also factored in tax credits for electric and hybrid vehicles, taxes on fuel or both.

Fuel Taxes Must Rise, Harvard Researchers Say

[PapaNew]

Wow, the law of supply and demand. Economics 101. I think as a remedial measure, all government and potential government people should be required to take at least Econ 101 and 102 and listen to at least 20 hours of Milton Friedman. :)

[gunnyg]

Ref

http://www.freerepublic.com/focus/f-news/2463127/posts

Good Pic above re comments...
why don’t we see it all da time??????????????

[wideminded]

That was the 14th of July, 2008 when President George W. Bush wisely lifted the moratorium on oil drilling, thus sparking the precipitous drop in the price of gasoline from an average high of $4.12 per gallon to a cellar dwelling low of $1.60 by November of that year.

As you can see on your graph, the price of gasoline was up near $3.80 in September when the really precipitous drop began, caused by the international financial crisis.

[joeclarke]

As you can see on your graph, the price of gasoline was up near $3.80 in September when the really precipitous drop began, caused by the international financial crisis.

I would also agree with Larry Kudlow and others that the high oil prices helped to provoke the downturn in economies, and the lowering of prices also contributed to economic declines. The moratorium had a lot to do with both according to many econmists.

[EQAndyBuzz]

Obama will open up all those areas once the donations from the envirowhackos are complete, figure September.

The governors of those states will praise Obama’s courage to take on the big oil companies, prices will drop to nothing and the people will love him.

Then in January 2013, he will Salazar will rescind every contract and Obama will have his permanent 7dollar gas.

[gunnyg]

[joeclarke]

Thank you Gunny G. I will look that up and use it.
I served in the USMC - Vietnam.
jc

[gunnyg]

Thank ya, Marine!

Semper Fidelis
1952-’72

Dick Gaines
aka: GyG
*****

[SargeK]

Obeyme is blaming ‘speculators’ for driving up the price in defiance of market supply/demand fundamentals. With every long contract, there is a counterparty shorting the commodity, no?

So if the market fundamentals truly don’t support the high prices, the bottom WILL drop out and some point and the ‘speculators’ are going to take it in the teeth.

OTOH if the premium is because of government tomfoolery (the 99% probability in my book) then the bottom has been raised significantly until such time as we get a government that is far less of a bunch of idealogues and respects the power of free markets.

That’s not likely with this bunch, which is a jail break from Harvard.

[Redleg Duke]

"Wow, the law of supply and demand. Economics 101. I think as a remedial measure, all government and potential government people should be required to take at least Econ 101 and 102 and listen to at least 20 hours of Milton Friedman. :)"

Yes, and they must do this to either retain or atain a government job and they must take these courses on their own time and pay for them with their own money!

[epithermal]

IER Analysis: Oil and Gas Production Declines on Federal Lands in FY2011

[dirtboy]

Obeyme is blaming ‘speculators’ for driving up the price in defiance of market supply/demand fundamentals. With every long contract, there is a counterparty shorting the commodity, no? So if the market fundamentals truly don’t support the high prices, the bottom WILL drop out and some point and the ‘speculators’ are going to take it in the teeth.

Speculative pressures can only be applied if the supply is already tight. The GOP's solution is to get out of the way of increasing the supply. The Dems LIKE high prices but don't want to take the political blame for such, hence blaming everyone but their own policies for the price spike.

[SargeK]

That’s precisely my point - speculation can’t work, not for long anyway, unless there is a fundamental in the form of tight supply. In that case, what is pejoratively called ‘speculation’ is really just a scramble by investors and buyers to secure future supplies as a lower and/or predictable price.

However, tight supply can be natural (e.g. ‘peak oil’) or artificial. I don’t think we’ve hit ‘peak oil’. Rather the continuation of policies designed to limit access to the natural reserves creates an artifical shortage.

Those who are long in the market (the evil speculators) will take it up the chute if the tight supply that is mostly a product of stupid policy that can be reversed, is reversed.

This is why this is a winner for the GOP if they play it right, because Obeyme can’t ease up without alienating and demoralizing his environut base. But then, never misunderestimate the ability of the GOP to drop the ball. They didn’t get the moniker “The Stupid Party” for naught.

[SargeK]

And oh, by the way, there’s the Iranians who look at this guy and see a cream puff. Once they get the Bomb, they’ll set up a toll booth on the Straights of Hormuz.

That figures into it as well.

[W. W. SMITH]

There are those within this nation who cannot abide a wealthy America. They will forever maneuver events so that our wealth is spent buying what we could provide easily from our own resources.

A wealthy and productive nation never chooses poverty and slavery. They do not desire a despotic ruler.

Communism can only be born in the midst of poverty and misery.

And now you know the rest of the story!

[dirtboy]

That’s precisely my point - speculation can’t work, not for long anyway, unless there is a fundamental in the form of tight supply. In that case, what is pejoratively called ‘speculation’ is really just a scramble by investors and buyers to secure future supplies as a lower and/or predictable price.

I disagree to some point there - over 70 percent of oil futures contracts in 2008 were held by speculators - defined as being neither a producer or end consumer (such as a refinery).

And with investment banks such as Goldman not being subject to position limits, price pressure was built over several months by investors scrambling to get in on the returns - and then Goldman got the suckers lined up and profited by shorting the downside as well.

And I sense that happening again, we are hearing the same kind of claims that we heard in 2008 about spiralling Asian demand that really was never there - even as US gasoline usage is tanking.

But this can only happen if supply is tight and the perception is in place that nothing is being done to drive future increases in supply. Obama satisifies that requirement to a 'T'.

[SargeK]

I can’t fault you there. I can only point out that there IS a downside and GS played both sides of the street. Hard to blame them really, sheep get sheared. That’s the way it’s always been.

But you also note that Obeyme is the trick to make it work - his policies help create the tight supply or at least the perception thereof that drive the sheep to shears. Take that away (God please) and it will be interesting to see how far down the market goes.

[LibLieSlayer]

IF bush and his cronies had done what they should have done and IF bush were not the progressive that his daddy is... had he and the republican elite done what should have been done when they had majority control... obama would never have been elected and there would be no American Energy Crisis.

LLS