Blame Oil Speculators, Not Obama, For Rising Oil Prices

[Soggy in NOLA]

Remember when we said "Drill here, drill now" and you idiots said that it wouldn't reduce the price of oil for years?

Well, it's been years...had we started then, Iran and OPEC would have a much smaller impacted on supply.

I see Lakota has made the exact same asinine argument in this very very thread..."how could a pipline..." yada, yada, yada.

We should have began drilling our own oil LAST TIME this crisis reared it's head.

Instead, once again we are forced by liberals to be reactive instead of proactive.

Did you bother reading the OP?

But there’s little truth to claims that Obama has curbed U.S. oil production and driven up gas prices in the process. As NPR noted this morning, the number of drilling rigs in U.S. oil fields has quadrupled under Obama and domestic oil production hit an 8-year high in 2011. For the first time in 60 years, the U.S. is now a net fuel exporter.

And there's ZERO truth to the claim that Boiking has has anything to do with that.

Most of the present drilling has been done on private property and under leases secured before he and his Marxist regime came to power.

Obama Administration Spins U.S. Oil Production Numbers, Takes Credit for Predecessors

Obama Administration Turns Spin Cycle up to High with Latest

I will however give him credit for the further erosion of the USD which does affect the price paid for oil. Funny, that never gets touched upon....

 

[Lovebears65]

I like how the left blamed Bush for all the gas prices while he is in office. But, as soon as their guy is in office they want us not to blame Obama. Its everyone fault but Obama. Just like Obama says ATMS, earthquakes and anything he can think of ,why the economy is horrible

 

[Zander]

In Obamaville every American uses a soy-vegan candle for light, a sun-powered refrigerator (better hope it's not cloudy!), and a bicycle for travel. Overseas travel will require a rowboat....

 

[KissMy]

Brent & other international benchmark crude oil prices are $122. WTI is about $105.

In mid November Enbridge Inc. announced it's plans to buy the Seaway Crude Pipeline System & reverse the flow of to move crude in the Midwest to the coast. The announcement sent U.S. crude prices soaring on expectations that the Midwest glut of oil could soon be released and fetch prices closer to more expensive, international benchmarks.

 

[Toro]

So then was that sudden sharp & continuous rise in the price of gas at the pump due to the expiration of the Ethanol Tax Cut or the closing of the OCS?

Day to day trading as it pertains to the broad economy is noise. The fundamental strength of the economy is improving. We are hearing it from the companies themselves. That may not last, but that has been the case for the past several months.

It was economic strength that caused that sudden sharp & continuous V shape rise in gas price shown in the chart.

Every gallon of gas sold at the pump contains 10% ethanol & is called E10. Ethanol had replaced 15% of the gasoline sold in this country. 10% was sold as E10 & 5% was sold as E85. On January 1, 2012 the 45 cent tax cut on ethanol was not renewed because the USG needs more tax money to further their social agenda. This increased the tax everyone paid at the pump by 5 cents since all gasoline is E10. For E85 users the tax increased by 38 cents per gallon. E85 users switched to E10 gasoline driving up gasoline demand 5% since then. The sudden price spike on the first day of 2012 is the tax hike & the continuing rise is caused by demand increase until the price rises by 38 to 45 cents so E85 use will compete once again holding gas prices in check. Also North Carolina increased their gas tax by 20 cents on the same date.

No I think the spike was caused by the tensions in the ME. The strengthening economy is providing the underlying bid however. It will be interesting to see if $4 at the pump curbs consumption and slow growth. It has the last few times it went up there.

 

[KissMy]

Day to day trading as it pertains to the broad economy is noise. The fundamental strength of the economy is improving. We are hearing it from the companies themselves. That may not last, but that has been the case for the past several months.

It was economic strength that caused that sudden sharp & continuous V shape rise in gas price shown in the chart.

Every gallon of gas sold at the pump contains 10% ethanol & is called E10. Ethanol had replaced 15% of the gasoline sold in this country. 10% was sold as E10 & 5% was sold as E85. On January 1, 2012 the 45 cent tax cut on ethanol was not renewed because the USG needs more tax money to further their social agenda. This increased the tax everyone paid at the pump by 5 cents since all gasoline is E10. For E85 users the tax increased by 38 cents per gallon. E85 users switched to E10 gasoline driving up gasoline demand 5% since then. The sudden price spike on the first day of 2012 is the tax hike & the continuing rise is caused by demand increase until the price rises by 38 to 45 cents so E85 use will compete once again holding gas prices in check. Also North Carolina increased their gas tax by 20 cents on the same date.

No I think the spike was caused by the tensions in the ME. The strengthening economy is providing the underlying bid however. It will be interesting to see if $4 at the pump curbs consumption and slow growth. It has the last few times it went up there.

The ME tensions were way high long before 1/1/2012. The economy did not shift gears over the holidays. The tax increase caused the spike at the pump.

There is no reason to think that demand destruction will not kick in again when the national average price hits $4 at the pump. It may even stall the economy.

North carolina had a 20 cent gas tax increase plus the 45 cent ethanol tax increase. That means Regular E10 gas taxes went up by 25 cents & E85 taxes increased by 58 cents a gallon in NC.

Also on November 17th, 2011 Canada's Enbridge Inc announced they would buy the Seaway Pipeline from Crushing Oklahoma to the Gulf. They said by July 2012 they will turn the pumps around & reverse the flow of oil. This will jack up the $WTI crude oil price considerably by July.

 

[Lakhota]

What Reporters Are Getting Wrong About Gas Prices | Media Matters for America

 

[Oddball]

Media Matters...*yawn*

 

[thereisnospoon]

What Reporters Are Getting Wrong About Gas Prices | Media Matters for America

Media matters is a far left wing..no radical left wing blog.
Not a surprise YOU linked them. YAWN

 

[Lakhota]

What Reporters Are Getting Wrong About Gas Prices | Media Matters for America

Media matters is a far left wing..no radical left wing blog.
Not a surprise YOU linked them. YAWN

I couldn't find any facts on Fox News...

 

[thereisnospoon]

What Reporters Are Getting Wrong About Gas Prices | Media Matters for America

Media matters is a far left wing..no radical left wing blog.
Not a surprise YOU linked them. YAWN

I couldn't find any facts on Fox News...

You should have checked ALL legitimate news services. Not just one.
In any event, if media matters is what you go by, that's cool.
Media Matters and other members of the lefty blogosphere have a vested interest in a second Obama term. Which means media matters will write, report or or state anything true or untrue to make that second term happen.

 

[Full-Auto]

What Reporters Are Getting Wrong About Gas Prices | Media Matters for America

Media matters is a far left wing..no radical left wing blog.
Not a surprise YOU linked them. YAWN

I couldn't find any facts on Fox News...

When did you ever use facts?

 

[Big Fitz]

Why would I blame speculators when Iran and the Saudi's are causing it?

They are but one of a set of culprits. P-BO did us no favors by gutting our oil industry here in favor of greenwashed frauds like Solyndra.

 

[Contumacious]

How much of this is Obama's fault?

"decision by Obama to nix the Canadian Keystone XL pipeline project that would have pumped 700,000 barrels of oil per day into the United States. More oil just means more excessive, immoral, ugly energy use."

.

 

[Lakhota]

I've read estimates of the overall impact of the Keystone XL Pipeline on lower gasoline prices of between 1.6 cents to 3.5 cents per gallon.

The Impact of Developing the Keystone XL Pipeline Project on Business Activity in the US: An Analysis Including State-by-State Construction Effects and an Assessment of the Potential Benefits of a More Stable Source of Domestic Supply

 

[NYcarbineer]

Oil prices fell from $147 to $35 on July 14th 2008 when Bush opened up the OCS for drilling.

That chart tracks the economy's downturn.

Wrong - That oil price chart lead the economic downturn by 2 months.

Are you a mental retard or what?

 

[sealybobo]

How much of this is Obama's fault?

"decision by Obama to nix the Canadian Keystone XL pipeline project that would have pumped 700,000 barrels of oil per day into the United States. More oil just means more excessive, immoral, ugly energy use."

.

Wrong.

U.S. demand for oil and refined products — including gasoline — is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.

Read more here: Once again, speculators behind sharply rising oil and gasoline prices | McClatchy

Drill Baby Drill is what the oil companies want. Of course they want all the land we will give them. But they are not going to share the profits. I say Nationalize the Oil Companies. And regulate the speculators on Wallstreet. This is our country. They have to follow our rules or don't do business in the USA.

 

[Lumpy 1]

How much of this is Obama's fault?

"decision by Obama to nix the Canadian Keystone XL pipeline project that would have pumped 700,000 barrels of oil per day into the United States. More oil just means more excessive, immoral, ugly energy use."

.

Wrong.

U.S. demand for oil and refined products — including gasoline — is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.

Read more here: Once again, speculators behind sharply rising oil and gasoline prices | McClatchy

Drill Baby Drill is what the oil companies want. Of course they want all the land we will give them. But they are not going to share the profits. I say Nationalize the Oil Companies. And regulate the speculators on Wallstreet. This is our country. They have to follow our rules or don't do business in the USA.

I believe the exports are mainly jet fuel and kerosene, which the oil companies can make a better profit on than gasoline..

When it comes to the unemployment figures Obama/Democrats prefer to stick with the old traditional method and treat over 7 million Americans like they no longer exist..

I'm thinking they should at least remain consistent and blame Obama/Democrats for high gas prices... stick with blaming the party in power, it's tradition...

 

[Mr. H.]

How much of this is Obama's fault?

"decision by Obama to nix the Canadian Keystone XL pipeline project that would have pumped 700,000 barrels of oil per day into the United States. More oil just means more excessive, immoral, ugly energy use."

.

Wrong.

U.S. demand for oil and refined products — including gasoline — is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.

Read more here: Once again, speculators behind sharply rising oil and gasoline prices | McClatchy

Drill Baby Drill is what the oil companies want. Of course they want all the land we will give them. But they are not going to share the profits. I say Nationalize the Oil Companies. And regulate the speculators on Wallstreet. This is our country. They have to follow our rules or don't do business in the USA.

Share the profits? What kind of Socialist bullshit is that?
Never mind the billions in taxes the industry pays each year?

The oil industry is "following the rules" just as other industries. But unlike others, they rank 115th in terms of net profit.

Christ I can't belive the idiots around here.

 

[Mr. Shaman]

Blame Oil Speculators, Not Obama, For Rising Oil Prices

....And, now....WALL $TREET wants a......​

....RULE CHANGE!!!​

"Wall Street is pushing to stop a new rule that would crack down on speculation in the energy markets, which many blame for contributing to the spike in gas prices.

The new rule -- part of the 2010 Dodd-Frank Act to reform Wall Street -- would set limits on how much traders can buy, preventing firms from grabbing large chunks of the energy market."​

Wall $treet Greed​

"The culprit is Wall Street. Speculators are raking in profits by gambling in the loosely regulated commodity markets for gas and oil.

A decade ago, speculators controlled only about 30% of the oil futures market. Today, Wall Street speculators control nearly 80% of this market. Many of those people buying and selling oil in the commodity markets will never use a drop of this oil. They are not airlines or trucking companies who will use the fuel in the future. The only function of the speculators in this process is to make as much money as they can, as quickly as they can."