Skip to comments.Restricting Supply To Boost Prices
Posted on 04/09/2012 5:57:47 PM PDT by Kaslin
Energy Policy: The administration claims there's no "silver bullet" to lower gas prices and that they've kept rising in the face of higher domestic production, as if the law of supply and demand has suddenly been repealed.
It hasn't, and increased production on private and state lands doesn't blunt the impact on prices when 94% of federal onshore lands and 97% of federal offshore lands are off-limits to oil and gas drilling.
A key factor in gas prices is and always has been future supplies and potential disruptions to those supplies.
Another is the fact that we are the only major nation to deliberately limit domestic oil production even as war clouds and unstable governments place foreign sources in jeopardy.
We saw the effect of supply on oil and gas prices when oil prices fell by $2 a barrel overnight on a mere rumor that the U.S. and Britain might jointly tap their reserves.
On Monday, oil prices fell 2% as revived talks on Iran's nuclear program eased fears of supply disruptions. Imagine the effect on oil and gas prices tomorrow if President Obama opened all federal lands and our vast reserves to oil and gas drilling.
After a brief rise in offshore oil production thanks to Bush administration policies, domestic production on federal lands has declined under Obama by 275,000 barrels per day from its 2010 peak and by 17,000 barrels a day since he took office in January 2009, according to a Congressional Research Service report.
The Institute for Energy Research reports that crude oil and lease condensate production on federal and Indian lands is 13% lower than in fiscal year 2010.
(Excerpt) Read more at news.investors.com ...
1. Strangle domestic drilling.
2. Kill the Keystone XL pipeline.
It is a simple policy, restrict supply and watch the price increase. He is simply destroying American wealth and America itself.
If he gets another four years, there will be a depression in 2013 and a total financial collapse in 2014.
Energy supply and demand are one of the main focuses on prosperity of any nation! This President seems determined to destroy this normal equation simply to pacify the feelings of our wonderful environmental groups. Leftist attitudes all.
If you want America to succeed, you have to provide a long term energy plan (NOT green energy - that is decades away at best) that includes using the energy available today while working toward a better alternative. This President is too caught up in the leftist views to have any positive effect on energy policy. He will at least help us toward poverty by his crazy spending with green industries.
Get him out of office for the good of America!
That's why we should have no concerns about recent federal programs to buy up lots of ammunition. There will still be plenty for all who don't want to use firearms. /s
and that same policy that you outline makes Arab oil sheiks richer. Coincidence that he bows to the king of mecca?
Yes, yes, yes, yes and yes, I think.
Collusion on price fixing? Thought the feds shut a lot of places down for this kind of crap.
There's more to it than that.
High prices finance our enemies. Carter effectively financed the great Soviet buildup of the '70s by restraining supply. Reagan killed the Soviet Union by exactly the same mechanics in deregulating supply.
High prices are a payoff to the same oil and gas investors who fund the environmental move-mint. It gives them a stranglehold on the economy to force funding their other investments.
Yes, and why should you drill now, you won’t see that oil for 5 to 10 years.
I agree about the financing your enemies. I think you are getting a little out there with your second point.
-——oil prices fell 2% as revived talks on Iran’s nuclear program eased fears-——
I doubt that statement. There is no support provided to link the cause and effect of the two events
I would bet people may very well form car pools using a van hauled by a team of mules soon.
Funny thing is Obama truly thinks he can manipulate America like a cowboy using firecrackers to herd cattle.
But in the end all he is doing is supporting the mother of inventions. Already people are inventing ways to get around the high fuel costs and NOT buy using the Obama grand scheme of cronyism “GREEN” affiliations.
Energy independence ping
My electric provider calls it “leveling of sales variations”. Consumers use less and the company treats it like a loss and charges more to make up for the “loss”.
So much for the law of supply and demand.
Totally superficial treatment. See the link at post #17.
1) passed a law manadating that a fixed % of our electricity come from solar, which will create more green jobs in China.
2) passed a law mandating that public schools teach and require a course on Man Made Climate change for graduation. (just as that video I posted points out at the end, creating 'global citizens' tolerant of certain specific behaviors but not others.)
Off topic here, but why are they buying hollow point ammo? The Geneva convention has banned the use of hollow point bullets in war. Is our current leadership violating the Geneva convention and who are they intending on using the 340 million bullets on?
Why did the British Royal family (BP) and Prince Behrnhard of Holland (Shell) found Greenpeace? How about the International Union for the Conservation of Nature and Natural Resources?
Why are the biggest donors to the Natural Resources Defense Council principally oil and gas investors (Pew (SUNOCO), Jones (Citgo) and Rockefeller (see above))?
This is fascist mercantilism writ large.