Gas Price Perfidy (or The Obama Deception )

Discussion in 'Politics' started by Vel, Mar 16, 2012.

  1. Vel
    Offline

    Vel Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    5,463
    Thanks Received:
    1,913
    Trophy Points:
    248
    Location:
    Tennessee
    Ratings:
    +1,914
    But of course Obama has NOTHING to do with gas prices. :eusa_whistle:
    ********************************************************
    Gas Price Perfidy
    The president wanted higher gas prices, not a boom in domestic production.
    2:05 PM, MAR 3, 2012 • BY MARIO LOYOLA

    As a direct result of the president’s severe constriction of oil production under federal leases, domestic U.S. oil production will be nearly one million barrels per day lower this year than it would have been otherwise.

    Contrary to what it would now have you believe, choking off production under federal leases was quite clearly a priority of this administration from the start. When gas prices reached $4 per gallon in the summer of 2008, the Bush administration reached a bipartisan agreement to open virtually all of the OCS to oil production, ending a thirty-year moratorium. In its first weeks, the Obama administration shelved the plan. Last year, Obama announced a new five-year plan effectively closing all of America’s OCS until 2017, leaving only northern Alaska and the central and western Gulf of Mexico open to drilling.

    Now the Obama administration claims that it has actually opened more of the OCS to exploration than before. But that is true only in the sense that he first closed off all of what he could close, then opened up a small fraction of that. But the net effect has been to close nearly all of the OCS that was open when he assumed office.

    Gas Price Perfidy | The Weekly Standard
     
  2. Vel
    Offline

    Vel Gold Member

    Joined:
    Oct 30, 2008
    Messages:
    5,463
    Thanks Received:
    1,913
    Trophy Points:
    248
    Location:
    Tennessee
    Ratings:
    +1,914
    And the corresponding changes in policy today would have immediate effects because expectations of future supply and demand affect prices today. Consider this. In 2007, before the recession, world oil demand peaked at 86 million barrels per day. By 2009, demand had fallen to 85 million barrels per day—but in the same period the price of gasoline fell by half. Meanwhile, surplus capacity has averaged just 2.6 million barrels per day, which means that any significant shift in marginal supply or demand can trigger panic in the oil markets—and demand is projected to soar in the years ahead.

    Gas Price Perfidy | The Weekly Standard
     
    • Thank You! Thank You! x 1

Share This Page