HOW TO RETURN TO $2.00 A GALLON GAS

JEFFHEAD.COM ^ | March 15, 2012 | Jeff Head

[Jeff Head]

HOW TO RETRUN TO $2.00 A GALLON GAS You know what, I am sick of hearing all of the endless wrangling by the major news media and politicians (particularly of the liberal variety) regarding the price of gas. Yesterday I heard some so-called oil and gas expert on a talk show. He was a guest and clearly an Obama supporter. He launched into this protracted explanation of the price of gold, the value of the dollar, OPEC, the world market and China's purchasing, etc., etc. to explain why the price cannot come down and how anyone saying it can just doesn't understand the market or the way oil "works." The explanation was so convoluted it was rediculous, he kept saying, "Now hang with me, I know this is not easy to understand," and, "I know this will not be easy to folow, there's a lot involved and I will try and walk you through it," and "this is complicated, there's no wonder everyone is making mistakes about it." I finally just changed the channel. Here's the deal. Four years ago the gas prices went up. All of the same parameteres, POEC, the devalued dollar, China's use, the world market, etc. were in place at the time. Four years ago these same people said the price of oil and gas would not be coming down any time soon. (Hmmm seems like we've heard this same song and dance every few years). Then President Bush (who unlike the current occupant of the White House actually understood oil and gas very well) simply stated that the US would immediately open up its drilling off shore, working the shales and the sands, working the ANWR and in the Dakotas. ...and everyone knew he meant it. He immediately began doing it and things started popping to make it happen. Yes it was going to take years for those particular efforts to produce new oil (...but not ten years). But guess what? It did not take years for the price to be impacted. No sir. Within months. The Saudis and OPEC met and immediately reacted by cutting their prices. You see, it's simple to understand. They are floating in oil. Oil the western companies discovered and developed and then were given to them by Carter and other US Presidents and western leaders. Despite that, we were their major long term buyers, and remain so to this day. They do not want us to be capable economically of developing new sources that will make us independent of them. So they lowered their prices...dramatically. WITHIN SIX MONTHS THE PRICE OF GAS WAS WELL BELOW $2.00 A GALLON! ...and going down. That was four years ago, in 2008. Then Obama was elected.
	< AND THIS TURNED INTO THIS >
Pretty simple and direct comparison. Here's what happened. Obama stopped all of that research and development on federal lands. He turned it off (except on private property where he couldn't...but he is trying to over regulate them and make it harder). He visited the Saudis, and if you remember, he bowed to the Saudi King. The Saudis were happy as were the other members of OPEC and the price climbed, and is still climbing, now back and past the price where it is was before Bush initiated the exploration, development, and drilling on all of those lands. Most of us do not have such short memories as the politicians, the major media and the leftists want to imagine. Today, right now, if we had a President, an administration, and a Congress with any spine or true concern about American strategic long term interests, we would do the same thing we did in 2008, except this time we would mean it and make it stick permanently. If we did, like in 2008, the Arabs would lower prices which we would gladly take...right up until our own new oil and gas came on line. Then our own companies could produce it in abundance (we now have proven reserves doubling what all of the Arabs have together) and we would be able, IMHO, to do so for less than $2.50 a gallon...probably closer to $2.00 a gallon. And we would once and all break this foolish dependence on foreign oil for our needs. So, next time you here the hogwash like I heard on the radio, remember what happened four years ago before Obama came along. ...and write your reps and tell them all abouit it. I have. JEFF HEAD March 15, 2012 America at the Crossroads of History If I were President, Here's what I would do The Man who Despises America ...and for some light reading, for times when you want to take a break, here's what I do to spend those down times: My Review and Build of the 1/350 scale model of the Chinese Aircraft Carrier

[Noumenon]

Deep hot biosphere ping

[ex-snook]

Do I hear 1.80$? Anyone want to say $1.80?

[Sergio]

bkmk

[Jack of all Trades]

• Eliminate ethanol and the vast assortment of blends for different regions. The need has been made mostly obsolete by modern fuel injection control.
• Relax emissions controls a tad. "zero" emissions requirements reduce efficiency substantially, and pass car diesel emissions regs are ludicrous.
• Increase domestic drilling, but remember the end game. Better to pump the world dry before we use up most of our resources.
• Relax certification requirements for alternative fueled vehicles, particularly NGV.

[FrankR]

Jeff, I borrowed some of your graphic and added a little to it...

[Jack Hydrazine]

What do you think of this Jeff?

---

Date: 03-14-12
Host: George Noory
Guests: James R. Norman

Journalist James R. Norman argued that the U.S. and its allies use the price of oil as an economic weapon. The oil economic war against the Soviet Union worked so well in the 1980s, that this strategy is now being employed against “our other big geopolitical enemy,” China, which currently imports more oil than the US, and is much less able to pay for it, he outlined. The thinking in Washington is, it’s going to slow things down for China, and could put a crack in their political system, he continued. Other aspects of the economic war the US is waging with China are on the front page of the paper almost every day— with fights over trade actions, interest rates, and currency levels, he noted.

The whole Chinese business model is based on predatory trade practices, and that’s why the world is ganging up on them, Norman said, adding that China is facing large amounts of unemployment and social unrest, and their banks are sitting on huge assets of non-performing loans. Norman estimated that the actual cost of oil is between $10- $20 a barrel, but when US citizens shell out $4 a gallon at the pump, it’s collateral damage or the price we pay to engage in an economic rather than physical war with China.

Companies like Goldman Sachs, Merrill Lynch, and Morgan Stanley are the economic warfare equivalent of a carrier battle group, because they are able to project power— that’s why financial restrictions were lessened for them, he explained. Morgan also touched on geopolitical/economic situations in such places as Russia, Europe, Iran, Venezuela, and Syria.
http://www.youtube.com/watch?v=M_Q5hX5l3JU

[OrioleFan]

I heard a few years ago that some of the wells in the Gulf that were supposedly dried up actually filled back up. I’m guessing it was due to pressure and natural fracking.

[Theoria]

Of course. Thats the simple answer and obvious one. The quickest way to cheapen the gas would be to remove the Federal tax on it. But if ya really want to drop the price of oil, bring down the Dow to circa 6500.

[sickoflibs]

RE :”..and the crash was principally a financial crisis brought on by the Housing crash which, IMHO, was engineered by the democrats themselves. was engineered by the democrats themselves. ..Watch the video linked there, “Burning down the House,”...it explains the crash very well.”

I saw it many times (it was better with the orginal music) but it left out GWBs CRA type ‘get minorities with bad credit home loans’ initiatives and speeches from 2002 to about 2004.
If CRA was a major cause of that financial crisis then it doesnt absolve GWB’s finger-prints all over it with Democrats.

[verklaring]

Jeff

Oil is bought and sold on the world market. The price is a global one. The USA gets about 20% of its oil from Canada and more from Mexico. You are not actually importing that much from the Middle east.

In 2007 Pelosi became speaker of the house, Reid in the Senate, Bush was then in the WH, since then Obama. In 2007 the US national debt was 8.6 trillion. By the end of 2012 the USA national debt will be almost 17 trillion. It will have doubled in 5 years.

That debt was added by the US through the Fed buying its own bonds. This is destroying the value of the US dollar making not only oil but grain and food stuffs go up, like bread, or any grain product, even if the cardboard box stays the same but inside 12 oz went to 10 3/4 oz.

The problem is not just supply that is only one element, global demand is actually down and USA consumption is also down (unemployed people do not drive to work, for example).

The problem is the debt and spending.

[sickoflibs]

RE :”The (oil) prices were on the way down before the crash...”

Oil prices pretty much mirrored the DJIA in 2008. Both had a dip in mid summer and then took a major dive in October.,

I will have to do some screenshots that period and upload them to photobucket to show how remarkably similar they were.

I don't recommend doing that again to lower gas prices.

[Graewoulf]

The FIRST thing that needs to be done is to sign THE NATIONAL FUEL TAX HOLIDAY BILL.

BTW, they did it for the payroll tax, and that saved only $ 20/month.

No Federal Tax on gasoline will save 40 cents a gallon!

[wita]

I am sick of hearing all of the endless wrangling by the major news media and politicians (particularly of the liberal variety) regarding the price of gas.

...and you aren’t the only one.

[wita]

I am sick of hearing all of the endless wrangling by the major news media and politicians (particularly of the liberal variety) regarding the price of gas.

...and you aren’t the only one.

[Yo-Yo]

The quickest way to cheapen the gas would be to remove the Federal tax on it. But if ya really want to drop the price of oil, bring down the Dow to circa 6500.

Unlike Europe, our our state and federal taxes on gasoline are not very high, and amount to about $0.50/gal.

The best way to drop the price of oil is to raise the supply of it, and strengthen the dollar.

Problem is, you cannot pay back a $14 trillion national debt with a stronger dollar.

Remember Sarah's "drill, baby drill!" mantra? That was because during the campaign gas prices were about where they are now. Prior to Zero's election, and prior to the huge skid in the Dow, which forced investors to liquidate their commodities assets to cover their equities losses.

[verklaring]

"The FIRST thing that needs to be done is to sign THE NATIONAL FUEL TAX HOLIDAY BILL.BTW, they did it for the payroll tax, and that saved only $ 20/month.No Federal Tax on gasoline will save 40 cents a gallon!

No, it would not. The lost tax revenue would be made up by increased ponzi borrowing, spending and more debt, which is what has to be done with the short fall in SS. The result is that gas would do down due to the removal of the tax and up because the dollar is further destroyed in its global purchasing power and the net result would be more interest due on the national debt. Gas prices would rebound.

If you eliminated every expenditure of the US government including defense, except welfare, unemployment, medicare, medicaid and social security (pensions) and kept just those at current levels you would still be 1 trillion dollars in debt each year on the federal level.

This is arithmetic not politics. This is the problem on both state and federal levels. No one, including Ron Paul, is dealing with it.

[Jeff Head]

As I said before, the price for gas began falling before the crash as I remember...and I believe ti would have continued to do so with or without the crash.

The inancial crisis was brought on by the housing crisis which, IMHO, the dems engineered, riding it into the ground and blaming Bush for it.

The video, “Burning Down the House,” is a good one on this subject.

[Jeff Head]

We hjave enough proven reserves now to last through this century and beyond on our own if we want.

We should make use of them and use the time to move o other technologies where they make since...for example, over a 1020 year period we could easily moved private autos and a lot of commercial to hydrodgen power if we developed it correctly and made sure the infrastructure was in place to support it.

But overall, oil and gas are not going away soon...nor need they.

[Jeff Head]

Outstanding! Should be a Bill Board on every major Highway in the US. Send it to the Koch brothers!

[Jeff Head]

I believe we can fight the Chinese in the same wy while developing our own resources to the point that we are the major supplier. Then our people can have cheap gas while we use the position in the market for export to make it hard on nations like the Chinese when they step over the line as they are doing.

IOW, we do not have to make the American public suffr in the process if we are the ones with our hand on the spicket. too.