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Republicans Are Ignoring The Real Reasons For High Gas Prices (It's NOT the pipeline)
Business Insider ^ | 02/21/2012 | Robert Reichhhhhhhh

Posted on 02/21/2012 6:48:43 AM PST by SeekAndFind

Nothing drives voter sentiment like the price of gas – now averaging $3.56 a gallon, up 30 cents from the start of the year. It’s already hit $4 in some places. The last time gas topped $4 was 2008.

And nothing energizes Republicans like rising energy prices. Last week House Speaker John Boehner told Republicans to take advantage of voters’ looming anger over prices at the pump. On Thursday House Republicans passed a bill to expand offshore drilling and force the White House to issue a permit for the Keystone XL pipeline. The tumult prompted the Interior Department to announce on Friday expanded oil exploration in the Arctic.

If prices at the pump continue to rise, expect more gas wars.

In fact, oil prices are rising for three reasons — none of which has to do with offshore drilling or the XL pipeline.

The first, on the supply side, is Iran’s decision to cut in oil exports to Britain and France in retaliation for sanctions put in place by the EU and United States. Iran’s threat to this has been pushing up crude oil prices for weeks.

The second, on the demand side, is rising hopes for a global economic recovery – which would mean increased oil consumption. The American economy is showing faint signs of a recovery. Europe’s debt crisis appears to be easing. Greece’s pending bailout deal is calming financial nerves on both sides of the Atlantic, and the Bank of England and European Central Bank are keeping rates low. At the same time, China has decided to boost its money supply to spur growth there.

Neither of these would have much effect were it not for the third reason — overwhelming bets of hedge funds and other money managers that oil prices will rise

(Excerpt) Read more at ...

TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: gasprices; oil
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To: Safetgiver
Not true. You are ignoring the supply side.

Roughly 800,000 B/D can be exported from the tar sands to the world markets. That 800,000 B/D adds to the global supply putting downward pressure on prices globally.

41 posted on 02/21/2012 8:38:57 AM PST by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)
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To: SeekAndFind

“And nothing energizes Republicans like rising energy prices.”

This is so true. I remember the (now dead) TEA parties, and the violent and abusive townhall meetings sparked by rising gas prices. They even drowned a polar bear. Yeah, that’s the ticket.

42 posted on 02/21/2012 8:39:09 AM PST by Darth Reardon (No offense to drunken sailors)
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To: An.American.Expatriate

What about the increased gasoline and diesel exports from this country to Europe?

With the advent of ultra low diesel and heating oil, it has enabled increased exports to Europe.

Inventories have plummeted as a result.

43 posted on 02/21/2012 8:44:15 AM PST by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
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To: SeekAndFind

0bama’s fault, plain and simple. Reich can stuff it.

44 posted on 02/21/2012 8:46:22 AM PST by SueRae (Tale of 2 Towers - First, Isengaard (GOP-e), then 11.06.2012, the Tower of Sauron)
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To: dirtboy


But Reich has no integrity, so he’ll never frame it that way.

45 posted on 02/21/2012 8:48:49 AM PST by bolobaby
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To: headstamp 2
What about the increased gasoline and diesel exports from this country to Europe?

What of it? I stated that it was not the value of the dollar, nor was it the price of crude oil that is responsible for the recent rise at the pump. Increasing exports to Europe only serves to placate demand at the current prices and, if anything would reduce the price if supplies exceeded demand.

I contend that the Oil Companies are again using the specter of "impending crisis" to justify an increase in prices at the pump.

46 posted on 02/21/2012 8:56:53 AM PST by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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To: SeekAndFind

hedge funds, at banks, who can borrow at less than 1% and trade for commodities to earn 5%...looks like a simple bet with low risk. What is wrong with that picture?

47 posted on 02/21/2012 9:12:23 AM PST by q_an_a (the more laws the less justice)
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To: ChurtleDawg
I think he has a point though. When the stock market crashed in 2008, it sent the price of gasoline down sharply. The price of gas fell in the neighborhood of 40-50% in a very short time.

I believe it had more to do with this cause and effect:



48 posted on 02/21/2012 10:17:25 AM PST by Cobra64 (Common sense isn't common anymore.)
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To: SeekAndFind

What is missing in this article is the role of OPEC which is a price fixing cartel. If the US gets its oil from world markets it’s at the price set by OPEC and the speculators. However American oil sold in the USA is NOT subject to the OPEC price and can find its price equilibrium based on supply and demand. Canada is NOT an OPEC member so Canadian oil can also be sold to the US at market prices. Building the XL pipeline would not immediately bring down gas prices, but it would assure us of an oil supply that cannot be interrupted by chaos in the Middle East or the whims of dictators like Hugo Chavez. Bottom line if we exploited the known oil reserves in the US including ANWAR and the Gulf and completed the XL pipeline we would have secure sources of the oil we need and not be subject to OPEC price fixing.

49 posted on 02/21/2012 10:46:13 AM PST by The Great RJ ("The problem with socialism is that pretty soon you run out of other people's money" M. Thatcher)
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To: SeekAndFind

The prices above were shown on SF KTVU this morning. They are blocking the prices of the higher grades which were over $5/gallon.

Remember the hate America Enviros have wanted $5/gallon for gas for years. If our economy was recovering, this will drive a wooden stake into its heart!

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To: SeekAndFind

15 Trillion of Fairfax garbage sewage paper is being dumped in with the productive. (And the same goes for the euro-Brussels scam)

Mark this word folks >> CONSOLIDATION

CONSOLIDATION of Arbeitsziehungslager, is THE only reason two candidates, Mass-MittCare and The Undocumented, are being facialed before U.S. citizens.

This IS a big fat facial attempt.

51 posted on 02/21/2012 11:40:05 AM PST by Varsity Flight (Phony-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: Varsity Flight

Ah. The face transplant competition. Well, having seen the pix of 0bama in heavy cake dark makeup, we should include the lack thereof as a potential candidate, too, as we don’t see that face. Hypothetically speaking.

52 posted on 02/21/2012 11:45:17 AM PST by combat_boots (The Lion of Judah cometh. Hallelujah. Gloria Patri, Filio et Spiritui Sancto.)
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To: ilgipper

You obviously have little respect for Robert Riechhh. Is it just because he has repealed the law of supply and demand? You obviously don’t think he can do that.

53 posted on 02/21/2012 12:45:47 PM PST by AmericanVictory (Should we be more like them or they more like we used to be?)
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To: SeekAndFind

Idiot goblin alert.

54 posted on 02/21/2012 4:40:13 PM PST by Mike Darancette (Romney just makes me tired all over.)
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To: SeekAndFind

EPA pulls permits for two Texas City refineries

Published July 1, 2010

TEXAS CITY The Environmental Protection Agency on Wednesday rejected the air quality permits for 122 industrial facilities in Texas, including the BP and Valero refineries in Texas City.

The pulling of the flexible air permits that are issued by the state under EPA authority means the facilities do not have legal operating permits.

EPA Regional Administrator Al Armendariz said none of the facilities will be required to shut down but all will be required to obtain new permits under stricter guidelines.

Earlier this year, the agency pulled more than 200 permits, citing what it said were deficiencies in the Texas Commission on Environmental Quality flexible air permitting process.

55 posted on 02/26/2012 8:43:47 AM PST by kcvl
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