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There is an element of truth to what Obama was stipulating. The gas prices were low at the end of the Bush presidency, in part, due to reduced demand which was caused by the recession.

Obama was implying that if Romney’s policies lead to a deepening of the recession then gas prices would probably come down again.

Think about it. If the economy collapses totally then nobody would be buying oil and, at least in the short term, the prices would drop.

On the other hand, if the economy comes out of recession, then the increased demand will result in higher prices until the suppliers adjust supply upwards. Our concern is that supplies are being squeezed, especially domestic supplies, even while the demand is not expanding appreciably.

Even though there is a grain of truth in both observations we must not allow the implication to stand that higher gas prices are simply the result of an economic turn-around. First, we haven’t turned around. And, more importantly, the increase in prices during the Obama term is due primarily to reductions in supply and pressures on oil produced energy due to taking a lot of coal out of the equation.

And, more importantly, the increase in prices during the Obama term is due primarily to reductions in supply and pressures on oil produced energy due to taking a lot of coal out of the equation.

A couple of other major causes of the increased price of gas:

Inflation is really the biggest driver--printing endless amounts of money to cover deficit spending is making money worth less, which is have the effect of making oil/gas cost more.

Also, we now export much more gasoline than we used to, meaning that gasoline is also now a fungible product and subject to pricing based on an international market in addition to just a domestic one.

>>>And, more importantly, the increase in prices during the Obama term is due primarily to reductions in supply and pressures on oil produced energy due to taking a lot of coal out of the equation.

1. Domestic oil production is up. In fact, it is higher than at any time since 1998.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS1&f=M

2. Much of the the reason coal production is down is because it cannot compete with the sub $4 natural gas prices. NG production is about 25% above where it was in the mid 2000s due to fracking in the shale formations.

http://www.eia.gov/dnav/ng/hist/n9010us2m.htm

On a BTU equivalent basis, $4 ng equates to about a $50 coal price. Appalachian producers do not operate well at that level.

3. Current futures prices for ng are below the $4 level through most of the next year and are below $4.50 for pretty much for the next 4 years.

http://www.cmegroup.com/trading/energy/natural-gas/natural-gas.html

If those trends hold, those coal mining jobs aren't coming back no matter who is president.