A tale of two gas prices

We have record gas prices and no real potential for them to go down.  Back during the Bush administration the war in Iraq was pointed to as one of the contributing factors in soaring gas prices.  The environmentalists where up in arms and the price of gas was blamed for the recession, which oddly enough we are still in some three years later.  Let’s have a look at how the price of gas was handled by the Bush administration.

Bush sees no quick fix for high gasoline prices

WASHINGTON | Tue Jul 15, 2008 5:13pm EDT

(Reuters) – President George W. Bush said on Tuesday there was no quick fix to lowering record fuel prices and that oil in the U.S. Strategic Petroleum Reserve should be saved for supply emergencies.

“The SPR is for emergencies,” Bush told reporters at a White House news conference. He said “there is no immediate fix” to lowering record-high fuel prices.

Several U.S. lawmakers called on the White House this week to release some of the 706 million barrels of crude held in the reserve in order to put more supplies on the market and help lower oil and gasoline prices.

“Four-dollar gasoline, bogged down in a war in Iraq, the economy entering a recession, the stock market down more than 15 percent since January, the housing market in crisis, banks failing, the highest inflation in almost 30 years, and he still doesn’t think we’re in an emergency?” asked Democratic Rep. Edward Markey, who wants the president to release 500,000 barrels of oil a day from the reserve for six months.

Senate Majority Leader Harry Reid told reporters on Capitol Hill he would consider legislation requiring the administration to release oil supplies from the stockpile.

“Well, I would like to do that, yes, just like we did to tell him to stop putting it in,” said Reid, referring to legislation passed by Congress in May that ordered the administration to end oil deliveries to the reserve.

Bush believes more production is the answer. He said if Congress passed legislation to boost U.S. oil output that would change the “psychology” in the energy market about concerns over future oil supplies, which in turn would lower prices.

Bush on Monday lifted the White House’s almost two-decades-old executive order that banned oil drilling along most U.S. coastal states and called on Congress to end its separate drilling moratorium.

“I readily concede that (expanded offshore drilling) it’s not going to produce a barrel of oil tomorrow, but it is going to change the psychology that, you know, demand will constantly outstrip supply,” the president said.

Bush said that speculators are not to blame for higher oil prices and it is the market fundamentals of tight supplies and strong demand that are pushing up crude costs.

“The fundamentals are what’s really driving the long-term price of oil,” he said. “Demand for oil has increased and supply has not kept up with it.”

Congressional Democratic leaders accused Bush of pushing more drilling to help big oil companies, which already have millions of acres under government leases to search for oil.

The House of Representatives is expected to vote on a bill on Thursday that would require companies to search for oil diligently on their existing leases or turn them back in before they could obtain any new government leases.

House Speaker Nancy Pelosi said after Bush’s news conference that the president’s demand that Congress allow more offshore drilling was “a diversionary tactic” to take the spotlight off the bigger problems in the U.S. economy.

Earlier this year, Bush was criticized for not knowing about forecasts predicting U.S. consumers would suffer from $4 a gallon gasoline. The president said he was “aware of it now,” when asked about record pump prices.

Bush defended his administration’s lack of a national campaign from the White House to push a strong message that Americans should use less energy.

“It’s a little presumptuous on my part to dictate to consumers how they live their lives,” he said. “They’re smart enough to figure out whether they’re going to drive less or not.”

Government data shows that high pump prices and a weak economy have discouraged driving, with U.S. gasoline demand down 1.2 percent, or about 107,000 barrels a day less, during the first half of 2008 compared with same period last year.

So I will grant that it was election time but Bush did exactly what he should have done.  What did not happen since he did not have congress on his side was the actual drilling.  Lifting the decades old moratorium was a good move and in reality that one even caused a precipitous drop in gas prices.   How fast did it drop?   By October 27, 2008 a consumer magazine reported $2.66 a gallon gas and $1.84 by January.  One simple sentence.  I am lifting the moratorium on drilling.  Does anyone remember that?

So if gas was back down to under two dollars by 2009 the question that needs to be asked is what happened.    Look at that headline again.  Bush sees no quick fix.But within six months of lifting the drilling ban gas was under control but by that time the government was in control of a neophyte senator who had an environmental group of radical friends who wanted to prevent more drilling.  To date drilling in the Gulf has pretty much become stagnant and there are no new drilling permits anywhere on the continent.   So the balking at Bush about the cause of the recession must carry over to the current President right?  Well let’s see how the Main Stream Media is handling gas prices that are getting to be higher than Bush’s.

$4 Gas Might be Here to Stay

PHOTO: A sign showing rising gas prices beyond $4.00.
A sign showing the price for gasoline is displayed at a Shell gas station in this April 27, 2011 photo in San Francisco. (David Paul Morris/Getty Images)
May 4, 2011

In state after state, stunned drivers are pulling into gas stations advertising $4-per-gallon gas. Five states already have record-high gas prices, and another 22 states are within 15 cents of record prices. Economists say that prices may dip to around $3.25 later this year, but that everyone should start getting used to seeing a new digit on gas station price boards.

The U.S. Department of Energy reported late Monday that gasoline prices at the pump averaged $3.96 a gallon nationwide, up a little over 8 cents from a week ago.

“Nationally, gasoline prices have been above $4 for the last week or so,” Jamie Webster, a senior manager with PFC Energy, told ABC News. “I would anticipate that staying above $4 a gallon for gasoline, the national average, is probably going to be the case through Memorial Day, and probably a few weeks after that.”

The main reasons for the high prices are a rise in demand as the U.S. and global economies continue to recover from the 2008 financial crisis, combined with the recent unrest in oil producing countries such as Libya. Combining the two creates pressure on prices from both sides — lower supply and higher demand.

Indiana is one state that has seen a new all-time high for gas prices — $4.19 a gallon. “These prices are crazy. I’m putting $20 in here, and by the time I get home it will be gone,” Cindy Potter of Indianapolis told ABC affiliate WRTV as she tanked up.

Because of the high prices, drivers are trying to push the “E” on their gas gauges to the limit. In Mt. Pleasant, South Carolina, mechanics say they have seen a jump in customers who have damaged their fuel pumps by driving with empty tanks.

“[I have] two small children to feed. So sometimes you just can’t put $80 worth of gas in at a time. So, I usually do half and ride on that as long as I can,” said Robert Huger of Charleston, S.C., in an interview with ABC affiliate WCIV.

High gas prices have spurred an increase in gas siphoning theft. In California, Mark Moss, the owner of Canyon Ridge Contractors, told ABC affiliate KABC, “It seems like since fuel has spiked we’ve had several jobs where someone comes in and steals 1,800 – 2,000 gallons of fuel [from our trucks] at one time.”

There are no predictions for gas prices to go down significantly any time soon. Webster said a drop in prices back to the $3 or so we saw last summer could actually be a bad sign because it would probably come from a large economic slowdown.

Well there you go.  Bush let gas prices reach 4 dollars a gallon and that triggered “the biggest economic downturn since the great depression”.  But 4 dollar gas under the Obama administration?  Well it is just a fact of life.   As a matter of fact, Mr. Murray says at the end a drop in gas prices now would indicate a problem.

So do you think they are trying to keep prices up and scare us into believe that any reduction in price would be a sign of even harder times?  And to get us to give up our cars?   You bet they are.  Folks get on Washington.  Drill on the land and off the coast.  We need to become less dependent on foreign oil and the only way a country that has 825 cars per 1000 people can do that is to get our own oil and refine it.

Do the math.  High Gas Prices, High Federal debt and the devalued dollar=inflation and another recession on top of the one we are in.  That would be a potential depression. You are being lied to daily.  Stand up and be counted.



Filed under Gasoline, Main Stream Media

2 responses to “A tale of two gas prices

  1. $9/gallon today in Israel.

    • madmike59

      Hey Doc you know they are gonna milk Israel. We have oil here They don;t have us “over a barrel”

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