Keystone Equals Higher Prices At The Pump

[Star]

When it comes to the fungible oil market, Adam Smith's invisible hand is attached to a limp wrist.


Obama keeps giving permission for drilling more and more oil, so how is it that, US supply is up, US demand is down but-----but the price of gasoline continues to be high at the pump?


Drilling is not a bad idea; just don't expect miracles at the pump. In fact, with a lot of drilling, count on pain at the pump. Take a look at these prices! (Find out why.)

This Is Not an Accident — When Drilling is Up, Price is Up.


The two times (early 1980's and now) when drilling has set records, the price of gas has gone through the roof. When drilling was at it's lowest in 50 years under Clinton, gasoline got down under $1.00/gallon. Sarah Palin probably doesn't know this. Newt probably does. He's smart and a liar.



zFact: With a lot of drilling, the price will be high. With little drilling, it will be low.

• The reason is not hard to understand — see for yourself.

Drill-Baby-Drill
when the Gas Price Is High​

 

[Intense]

When it comes to the fungible oil market, Adam Smith's invisible hand is attached to a limp wrist.


Obama keeps giving permission for drilling more and more oil, so how is it that, US supply is up, US demand is down but-----but the price of gasoline continues to be high at the pump?


Drilling is not a bad idea; just don't expect miracles at the pump. In fact, with a lot of drilling, count on pain at the pump. Take a look at these prices! (Find out why.)

This Is Not an Accident — When Drilling is Up, Price is Up.


The two times (early 1980's and now) when drilling has set records, the price of gas has gone through the roof. When drilling was at it's lowest in 50 years under Clinton, gasoline got down under $1.00/gallon. Sarah Palin probably doesn't know this. Newt probably does. He's smart and a liar.



zFact: With a lot of drilling, the price will be high. With little drilling, it will be low.

• The reason is not hard to understand — see for yourself.

Drill-Baby-Drill
when the Gas Price Is High​

OPEC, Einstein.

 

[Star]

When it comes to the fungible oil market, Adam Smith's invisible hand is attached to a limp wrist.


Obama keeps giving permission for drilling more and more oil, so how is it that, US supply is up, US demand is down but-----but the price of gasoline continues to be high at the pump?


Drilling is not a bad idea; just don't expect miracles at the pump. In fact, with a lot of drilling, count on pain at the pump. Take a look at these prices! (Find out why.)

This Is Not an Accident — When Drilling is Up, Price is Up.


The two times (early 1980's and now) when drilling has set records, the price of gas has gone through the roof. When drilling was at it's lowest in 50 years under Clinton, gasoline got down under $1.00/gallon. Sarah Palin probably doesn't know this. Newt probably does. He's smart and a liar.






zFact: With a lot of drilling, the price will be high. With little drilling, it will be low.

• The reason is not hard to understand — see for yourself.

Drill-Baby-Drill ​

when the Gas Price Is High​

OPEC, Einstein.

Geez, not even Foxaganda is pushing this kind of nonsense-----get back to me when you pull your head outta the illicit drugs laden '70's.



One of the most common misconceptions about OPEC is that the Organization is responsible for setting crude oil prices. Although OPEC did in fact set crude oil prices from the early 1970s to the mid-1980s, this is no longer the case. It is true that OPEC's Member Countries do voluntary restrain their crude oil production in order to stabilize the oil market and avoid harmful and unnecessary price fluctuations, but this is not the same thing as setting prices.
In today's complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges, all of which have their own Web sites featuring information about oil prices. They are the New York Mercantile Exchange (NYMEX, http://www.nymex.com), the International Petroleum Exchange in London (IPE, http://www.ipe.uk.com) and the Singapore International Monetary Exchange (SIMEX, http://www.simex.com.sg).




Speaking of geniuses, do you think Romney uses the Magic 8 Ball to answer press conference questions?

 

[CrusaderFrank]

It's the Fed printing $2 Trillion of fake dollars and Obammy running up annual $1Trill plus deficits

 

[Mr. H.]

$100 oil, technology, innovation, and risk-taking by private industry are behind the increase in drilling.
Obamfuck has nothing to do with it.

 

[Star]

$100 oil, technology, innovation, and risk-taking by private industry are behind the increase in drilling.
Obamfuck has nothing to do with it.

Your Obama Derangement Syndrome aside...
I agree, President Obama can't raise the price of gasoline, the most he can do is issue leases for more drilling, which he has done. And that begs the question, how can it be that supply is up, demand is down but the price of gasoline is sky high?
Are you saying the free market, i.e. Adam Smith's invisible hand doesn't work in the oil market----what do you suggest we do to stop price raising "risk taking" ---- more regulation on the speculators or higher taxes on the speculators?

 

[Intense]

$100 oil, technology, innovation, and risk-taking by private industry are behind the increase in drilling.
Obamfuck has nothing to do with it.

Your Obama Derangement Syndrome aside...
I agree, President Obama can't raise the price of gasoline, the most he can do is issue leases for more drilling, which he has done. And that begs the question, how can it be that supply is up, demand is down but the price of gasoline is sky high?
Are you saying the free market, i.e. Adam Smith's invisible hand doesn't work in the oil market----what do you suggest we do to stop price raising "risk taking" ---- more regulation on the speculators or higher taxes on the speculators?

He raises prices by Taxation, Idiot. He raises prices by opening his mouth and saying stupid things that destabilize the market. You are a piece of work. Drilling increases on private land where he has limited influence, in spite of what a Shit Head he is, and you try to give him credit. How much has he pissed away on Green Energy scams? Never mind, it's beyond your comprehension skills.

 

[Mr. H.]

I feel like I'm being yelled at by a really big Smurf.

Rig counts chase oil prices, not vise versa.

Gasoline and other refined fuels are high because demand in other parts of the world is high.
It's also why we're exporting refined fuels. And that's a good thing.

Now you tell me- why are food prices so high when we have enough grains production in this country to be exporting millions of metric tons annually?

 

[Intense]

I feel like I'm being yelled at by a really big Smurf.

Rig counts chase oil prices, not vise versa.

Gasoline and other refined fuels are high because demand in other parts of the world is high.
It's also why we're exporting refined fuels. And that's a good thing.

Now you tell me- why are food prices so high when we have enough grains production in this country to be exporting millions of metric tons annually?

Because Government is playing God, again.

 

[Katzndogz]

Only according to democrats does increasing supply increase prices.

 

[Oddball]

I feel like I'm being yelled at by a really big Smurf.

Rig counts chase oil prices, not vise versa.

Gasoline and other refined fuels are high because demand in other parts of the world is high.
It's also why we're exporting refined fuels. And that's a good thing.

Now you tell me- why are food prices so high when we have enough grains production in this country to be exporting millions of metric tons annually?

Of course, no liberoidal rant on high oil prices is complete without the "eeeeevil speculators" strwman.

 

[Star]

I feel like I'm being yelled at by a really big Smurf.

Rig counts chase oil prices, not vise versa.

Gasoline and other refined fuels are high because demand in other parts of the world is high.
It's also why we're exporting refined fuels. And that's a good thing.

Now you tell me- why are food prices so high when we have enough grains production in this country to be exporting millions of metric tons annually?

Is this an attempt at debunking your own Republican mantra --- "drill baby drill, drill here drill now for lower prices"? -pewsh!-

​

 

[Intense]

$100 oil, technology, innovation, and risk-taking by private industry are behind the increase in drilling.
Obamfuck has nothing to do with it.

Your Obama Derangement Syndrome aside...
I agree, President Obama can't raise the price of gasoline, the most he can do is issue leases for more drilling, which he has done. And that begs the question, how can it be that supply is up, demand is down but the price of gasoline is sky high?
Are you saying the free market, i.e. Adam Smith's invisible hand doesn't work in the oil market----what do you suggest we do to stop price raising "risk taking" ---- more regulation on the speculators or higher taxes on the speculators?

That is unless high regulation, taxes, fee's, and costs of the permits are already obstructing R&D. Ya think? How much at every level of production is Taxed in one form or another. Who profits more on a gallon of gas, the Oil Companies or the combined Government, Local, State, and Federal? Here is an idea. Should the Government Tax Green Energy in the same way it taxes Oil and Gas, just to be fair?

 

[bripat9643]

When it comes to the fungible oil market, Adam Smith's invisible hand is attached to a limp wrist.

Obama keeps giving permission for drilling more and more oil,

No he doesn't, numskull. All the new drilling is on private land. It doesn't require permission from the federal government. Drilling on federal land is way down.

so how is it that, US supply is up, US demand is down but-----but the price of gasoline continues to be high at the pump?

just don't expect miracles at the pump. In fact, with a lot of drilling, count on pain at the pump. Take a look at these prices!

World demand is still up.

This Is Not an Accident — When Drilling is Up, Price is Up.


The two times (early 1980's and now) when drilling has set records, the price of gas has gone through the roof. When drilling was at it's lowest in 50 years under Clinton, gasoline got down under $1.00/gallon. Sarah Palin probably doesn't know this. Newt probably does. He's smart and a liar.

Fact: With a lot of drilling, the price will be high. With little drilling, it will be low.

The reason is not hard to understand .

You're putting the cart before the horse. Drilling is up because prices are up. The later drives the former. It's not the other way around.

The bottom line is that you're an imbecile who doesn't understand the first thing about economics.

 

[Mr. H.]

I feel like I'm being yelled at by a really big Smurf.

Rig counts chase oil prices, not vise versa.

Gasoline and other refined fuels are high because demand in other parts of the world is high.
It's also why we're exporting refined fuels. And that's a good thing.

Now you tell me- why are food prices so high when we have enough grains production in this country to be exporting millions of metric tons annually?

Is this an attempt at debunking your own Republican mantra --- "drill baby drill, drill here drill now for lower prices"? -pewsh!-

​

I've never claimed that drilling more here would lower prices. I cringe when I hear that, and I think it's a mistake for Republicans or anyone else to suggest so.

More U.S. drilling means more jobs, more economic activity that effects the creation of yet other jobs, and it requires the purchase of a hell of a lot of equipment and services. Less money spent on foreign oil, more tax revenues for federal state and local coffers, etc. etc. etc.

 

[Star]

When it comes to the fungible oil market, Adam Smith's invisible hand is attached to a limp wrist.

Obama keeps giving permission for drilling more and more oil,

No he doesn't, numskull. All the new drilling is on private land. It doesn't require permission from the federal government. Drilling on federal land is way down.

so how is it that, US supply is up, US demand is down but-----but the price of gasoline continues to be high at the pump?

just don't expect miracles at the pump. In fact, with a lot of drilling, count on pain at the pump. Take a look at these prices!

World demand is still up.

This Is Not an Accident — When Drilling is Up, Price is Up.


The two times (early 1980's and now) when drilling has set records, the price of gas has gone through the roof. When drilling was at it's lowest in 50 years under Clinton, gasoline got down under $1.00/gallon. Sarah Palin probably doesn't know this. Newt probably does. He's smart and a liar.

Fact: With a lot of drilling, the price will be high. With little drilling, it will be low.

The reason is not hard to understand .

You're putting the cart before the horse. Drilling is up because prices are up. The later drives the former. It's not the other way around.

The bottom line is that you're an imbecile who doesn't understand the first thing about economics.

IOW's, no matter what President Obama's administration does, the price of oil is not affected, the world market and only the world market affect's oil prices?



BTW ---

PolitiFact | Crossroads GPS ad says oil production on federal lands dropped under President Barack Obama​

​

A new Web ad from conservative group Crossroads GPS targets a presidential talking point on America’s oil production.

It argues that President Barack Obama takes credit for drilling that resulted from President George W. Bush's policies, while glossing over a recent decline in production on public land.

"Tell Obama, stop blaming others, and work to pass better energy policies!" a narrator says.

The ad starts with Obama’s claim that domestic oil production is at an eight-year high, something we’ve twice rated Mostly True.

Then a narrator asks: "Oh, really? His own administration admits production's down where Obama's in charge."

On screen, the ad displays a statistic from the Interior Department published by an energy news service that, "Oil production fell by 14 percent … on federal lands and waters."

That’s a one-year statistic we’ve also rated Mostly True.

This ad focuses on Obama’s role in domestic oil production on government land. We’re evaluating the claim that the president's oil "production's down where Obama's in charge."

The data

Greenwire, the energy news service cited by Crossroads, published Interior Department numbers for oil production on federal lands and waters in a Feb. 27, 2012, story, citing them in a second story, which was the piece Crossroads used.

The story said, "Oil production fell by 14 percent in fiscal 2011 below the previous year on federal lands and waters, according to statistics provided last month by the Interior Department."

So, oil production on federal lands, onshore and offshore, fell from 2010-11, according to Obama administration agencies. So far, so good, for Crossroads’ analysis — other than the fact that it failed to cite a time period for the statistic it quoted from Greenwire.

Does that matter?

Yes, says Jay Hakes, who directed the independent U.S. Energy Information Administration for seven years during the Clinton administration. "From a statistical standpoint, to take one year out of three — one year is not indicative of a trend," he said.

We pulled the numbers since 2003 from a U.S. Energy Information Administration report, also based on data from the Interior Department and its Office of Natural Resources Revenue.

Bush was in office from January 2001 to January 2009. In our chart, we’ve italicized the years he was in office and put in bold the years Obama led.

The Obama administration points out that the average production for Obama’s first three years is a 13 percent increase over the average production over Bush’s last three years.

We note that:

• From 2004-08, well into Bush’s tenure, oil production on federal lands and waters fell in four of five years, for a net decrease of 16.8 percent.

• From 2009-11, the Obama years, oil production rose two of three years, for a net increase of 10.6 percent.

Crude oil sales from federal lands
Fiscal yearOffshore (million barrels)OnshoreTotalPercent change from prior year2003579101680n/a200457297669-1.6%200554296638-4.6%2006471101572-10.3%2007514105619+8.22008462104566-8.6%2009527105632+11.7%2010618108726+14.9%2011514112626- 13.8%Source: EIA; some numbers slightly off due to independent rounding in source data


What’s likely to happen this year and next?

EIA doesn’t have projections for total production on federal lands, says spokesman Jonathan Cogan, but does project that offshore production in the Gulf of Mexico will continue to lag through 2013, with a drop of less than 4 percent from 2011. (Here’s the data in millions of barrels per day, though it’s calendar year data vs. the fiscal year data we show above.)

Who’s to credit or blame?

So, does Bush get credit for domestic oil expansion on private land and Obama the blame for a drop in public production, as the Crossroad ad describes? The picture is quite a bit more complex than a 30-second ad allows.

"I don't think Obama can claim a lot of credit for production levels now, and I'm not even sure that Bush can," said Hakes, the author of A Declaration of Energy Independence, which looks at energy policy from President Harry S. Truman to President George W. Bush. "If you're going to go back — who should get the credit — I might be able to find something that Nixon did."

The expansion of fracking, for example — using pressurized fluid to get gas or oil out of rock formations — came about over decades.

"That's why attaching production things to any particular administration is a very, very tricky business, and probably best handled in books rather than in articles," Hakes said. "There are just too many factors."

So, Obama certainly shouldn’t be claiming full credit for increases in oil production on private land — but neither should supporters of Bush.

Meanwhile, the story of the one-year dropoff in public production has a significant asterisk: the Deepwater Horizon oil spill in 2010. A six-month moratorium on exploratory drilling followed — though it by no means stopped gulf oil production — along with changes in regulation that forced the industry to adjust.
(Bush had his own disasters to contend with: Hurricanes Katrina and Rita in 2005 also drove a decline the next year, said Shirley Neff, a senior adviser at EIA.)

Oil production on federal land — not water — actually rose 3.7 percent in 2011. It was offshore production that took the hit, falling 16.8 percent. That’s something that Greenwire, the news service Crossroads cited in its ad, pointed out in its February story.

"This is a pretty significant decline; it almost has to represent the impact of the moratorium," Dan Kish, senior vice president for policy at the Institute for Energy Research, told Greenwire for the article.

While the moratorium could have been more targeted, it wasn’t a policy choice unique to Obama, said Hakes, the former EIA director who also directed policy and research for the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling.

Republican President Richard Nixon, for example, ordered one in the wake of a 1969 well blowout in Santa Barbara, Calif. "Every president, if you have a blowout like that … is going to get a moratorium," Hakes said.

Meanwhile, before the spill, Obama had announced a "fairly expansive stance" toward offshore drilling, including off the Florida Panhandle and the coast of Virginia, Hakes said. While that movement stalled with the BP disaster, the president has still moved toward arctic drilling off the coast of Alaska, alarming some environmental advocates.

(We wrote about permit approvals under Obama in a fact-check of Rick Santorum, who had falsely claimed the president "put (up) a stop sign … against oil drilling.")

Our ruling

A Crossroads GPS ad says Obama takes credit for Bush-era policies, then blames him for a downturn in oil production on federal lands. While it’s true that the effect of a president’s policies don’t show up in oil production for some time — in some cases, decades — the ad goes too far when it cites a 14 percent decline in production in a single year as evidence of the impact of Obama's overall energy strategy. The ad says oil production's down where Obama's in charge." The facts show that the decline represents a single year that followed years of substantial gains and occurred only offshore in the wake of a major oil disaster. The ad’s statement is partially accurate but leaves out important details and takes things out of context. We rate it Half True.

CORRECTION: We updated this item on April 18, 2012, to add the change from 2008 to 2009 to our net increase/decrease calculation for oil production on federal lands under Obama. That changed a small net decrease to a net increase of 10.6 percent. Our ruling has not changed.