Posted on 02/25/2012 7:34:39 PM PST by Iam1ru1-2
Last Monday, I heard a business analyst being interviewed on a popular television news network. In discussing the recent alarming rise in gasoline prices, he made this statement to the viewers: "Go buy gas for your car today. It will be more expensive tomorrow."
Boy, he was right on. Where I live, gasoline has risen 16 cents per gallon since he voiced that warning.
By early February, the national average for a gallon of regular unleaded was $3.56. That's not the highest it's ever been, but gasoline prices have never been this high this early in the season. It's interesting, too, that demand for gasoline is also at record levels -- record LOWS and falling! According to MasterCard, demand fell by 3.1% in recent days and is 5% below last year. And even though Europe has had a brutal winter, this has been a rather mild one for the US. Yet, heating fuel prices have not fallen despite the fact that Americans used far less heating oil than expected this year.
Some observers credit the fact that Saudi Arabia has cut production by more than 250,000 barrels per day. Also, Iran decided to punish Europe for threatening to impose fuel sanctions. The Iranians announced they will stop sending more than 300,000 barrels per day to France, England, and Germany.
So, there seems to be no easy answer to the most popular question these days, "Why?" Why are fuel prices rising when demand is falling?
And, it appears the Obama administration is not going to take advantage of a golden opportunity to drive those prices down, put tens of thousands to work, and decrease our dependence on Arab oil.
Canada has more oil reserves than Saudi Arabia. Because of new technologies not available just a few years ago, Canada has been able to begin successfully recovering that crude oil. The Canadians announced that they wanted to sell that oil to their neighbors to the south. That's us! So the private sector got busy and in 2005 began developing and building a pipeline that would move Canadian crude from northeastern Alberta province to refineries throughout the Midwest and on down to the Gulf Coast states.
Talk about a bonanza! The mammoth pipeline project is privately funded. No government stimulus funds needed. It will employ tens of thousands in construction-related jobs and maybe hundreds of thousands in related industries as the project grows and the oil is finally pumping. And there's so much oil available, it will help make us less dependent on Arab oil. And it will help drive down the refined prices because, currently, Saudi oil is selling for $105 a barrel while Canadian oil is going for $33 per barrel. Some analysts speculate that within a few years, by combining our reserves with Canada's, America could become a net oil exporter. We could sell oil to fuel-hungry China and maybe get some of our money back!
Sounds like a no-brainer, right? Wrong! Remember, we are now living in a "progressive" society. There's no such thing as a "no-brainer" anymore. You see, our President is either so ideologically bound or so financially beholden to the environmentalist lobby that he feels obligated to do its bidding. So, on January 18, President Obama announced he was rejecting the Keystone XL pipeline project.
You see, he first tried to "postpone" his final decision until 2013 so he wouldn't have to antagonize the environmentalists going into the 2012 general elections. Congress would have none of that, though. So they passed legislation requiring him to make a decision within 60 days or formally reject the project.
Then, President Obama complained that his government didn't have time to do an effective environmental survey. That excuse brazenly ignored the fact that his own State Department had already issued an environmental impact study in 2010 that gave the project the environmental "green light." So, the so-called "smartest President" in American history caved to the far Left and said "no" to a "no-brainer." Even many in his own party are outraged.
Canada had already declared that they intended to sell the oil. If not to their closest neighbors (that's us), then to someone else. It is now late February and the Canadians have already begun signing agreements with the Chinese to build the pipeline to Canada's west coast and begin shipping the crude to China.
Unfortunately, I suppose President Obama is keeping his campaign promise to "fundamentally change America." And if America has been, as President Ronald Reagan famously declared, "A city shining on a hill," to fundamentally change that means dimming the lights of the city.
It grieves me to see this happening to our beloved nation. But, I must confess, it doesn't surprise me. I find no role in the Scriptures' prophetic scenario for a nation that resembles the United States. That does not necessarily mean that our country will no longer exist, but I firmly believe it means that it will no longer be a superpower. It will no longer be the "last best hope for a dying world." It will no longer be that "city shining on a hill."
I miss America already.
I’m not worried. I just signed up for my free Obama Algae Gasoline!!
Fuel Stamps????
Developing oil fields or building pipelines isn’t going to bring the price of gas lower as it will take years to get them up and running. /s
That’s what they said 10 years ago.
When they refused to drill.
Because it would take 10 years...
The sad part is that many, even here, might support it.
This administration has thrown every available monkey wrench into the works of oil drilling and production, refining and distribution, and STILL has the unmitigated gall to claim credit for increases in oil production done entirely by the private sector in spite of a hostile government.
No reason to nationalize anything.
It would absolutely make sense though, to stop exporting our own fuel. Talk about bone-headed.
We have the whole “free trade” thing just about exactly wrong.
Exporting our own fuel?
Time to embargo our own oil exports. American oil, for Americans please.
Well sure - ‘cuz in ten years we’ll all be using electric which is free.
Exactly
Makes ya wonder.
It'll be interesting watching all these people point fingers at each other, as this goes to $5-$6 per gallon, as the low/middle class private sector is economically gang raped and robbed, beyond what they've already been.
It’ll be interesting watching all these people point fingers at each other, as this goes to $5-$6 per gallon, as the low/middle class private sector is economically gang raped and robbed, beyond what they’ve already been.
Toss in inflation and pay freezes and your going to have bigger problems than we do today.
Bet the rent.
U.S. oil exports are about 1.6 million barrels a day: US oil imports are 13 million barrels a day.
Being both an importer and an exporter of what looks like the same thing is in the nature of trade. Many factors are involved but the most obvious is geography.
For example: if you drill and refine oil in Montana there is a ready market for this oil across the border in Calgary, Canada. So it makes perfect sense to export across the border.
Meanwhile the Canadians drill and refine oil in Quebec and export oil to Americans in Maine.
These sort of examples show why Canada is both the biggest importer of U.S. oil AND the biggest exporter of oil TO the U.S.
Free Trade allows people to make a profit - and to get cheap oil - by moving the oil in the cheapest possible way.
FR’s protectionists would have you believe that exporting oil is somehow evil and wrong. They would apparently love to destroy the economy of Montana and freeze everyone in Maine because they choose not to understand that the free market is the only effective way to use and deploy resources.
Add this reason to your list. Our trading partners need more oil and refined fuel to get products to us along with more debt for our political class to buy them with. ;-)
Have fun. Enjoy the slide.
Are you for the U.S. having borders? you agree with the international socialists who are for “free” trade. Are you an anarchist ?Should we allow 2 billion third world people to move to the U.S.A. that's what you are suggesting when you say that we allow any foreign product. workers are part of the economy too. We can't allow all who want to move to the U.S.A to do so. Also we can't allow countries to ship cocaine etc. to the U.S.A. , likewise we shouldn't allow China to ship trillions of tons of china products that destroy our industries. We have to defend the border using the Army etc., China is waging economic war against the U.S.A. so the media brainwashes you into not doing anything and calls that free trade. You free traders like the democrat Obama voters are mindless slaves.
The U.S. can have free markets inside the U.S.A. Nothing about free markets says you have to trade with Communist China. America first protect the border against foriegn threats the biggest being China, then illegals.The U.S. didn't trade with China during 40 years of the Cold war. then in 1990 started trading with China and then the U.S. decline began and China rise began.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.