Gasoline up 100% under Obama

[700UW]

Bottom line is demand has risen substantially over the past 25 years and not one refinery has been built to keep up with demand. Gas prices skyrocketed under Bush, yet no one blamed him.

Capacity cannot keep up with demand.

Other major factors contributing to the current level of prices include a weak dollar and the continued rapid growth in Asian economies and their petroleum consumption. The 2005 hurricanes and U.S. refinery problems associated with the conversion from MTBE as an additive to ethanol have contributed to higher prices.

One of the most important factors supporting a high price is the level of petroleum inventories in the U.S. and other consuming countries. Until spare capacity became an issue inventory levels provided an excellent tool for short-term price forecasts. Although not well publicized OPEC has for several years depended on a policy that amounts to world inventory management. Its primary reason for cutting back on production in November, 2006 and again in February, 2007 was concern about growing OECD inventories. Their focus is on total petroleum inventories including crude oil and petroleum products, which are a better indicator of prices that oil inventories alone.

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[SparrowHawk]

OH horse crap.

The Chines economy has grown over 300% just from 1990 to 2006. It has been averaging 10% a year. Last year it slowed down a bit to about 8.7%. India's growth is following a little behind them. Oil demand is increasing. What happens when demand increases? Prices go up. Add the speculators on to the demand increase and prices go up even farther. Right now, refiners are switching over from winter gas to summer gas so supply is a bit down from what it is when they are running at max capacity. Obama is no more responsible for the gas prices than Bush or the man in the moon.

Horse Crap Indeed!!

I just checked and it's a huge file that can't be posted here. Suffice it to say that for the last three years worldwide oil consumption has remained FLAT.

The continual devaluation of the dollar by the Fed/Obama is partially to blame for the run up. Speculation plays a part especially when you factor in the crushing debt expanded under Obama Lama Ding Dong

This guy is a weeping wound upon Freedom & Liberty

 

[Ms Tree]

Nope. Still horse crap. Try doing a search on oil consumption for China. Their consumption is increasing at 6%-7% a year. World consumption is increasing so prices will go up.

How you can maintain that oil consumption remains flat when the Chines and Indian economies are growing the way they are is beyond me.

 

[delldude]

Bottom line is demand has risen substantially over the past 25 years and not one refinery has been built to keep up with demand. Gas prices skyrocketed under Bush, yet no one blamed him.

Capacity cannot keep up with demand.



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Good point.....wonder why they won't build more refineries?

 

[700UW]

Probably several factors, cost, EPA regulations, the NIMBY crowd and keeps the capacity down and inflates prices.

The last refinery was built in 1976.

Info

 

[delldude]

Probably several factors, cost, EPA regulations, the NIMBY crowd and keeps the capacity down and inflates prices.

The last refinery was built in 1976.

Info

EPA regulations, the NIMBY

That about covers it all there.

 

[xUT]

No one wants it in their back yard mentality and saving the last one eyed purple people eater.
But 'somehow' people want new clean energy (without compromise).
I still believe that nuclear power is one of the best ways to go and take lessons learned from the Japan incident.
Had cooling not failed, this would be a non-issue as they survived the earthquake.
B) xUT

 

[Dog Wonder]

Wat were gas prices in the Fall of 2008?

 

[delldude]

Wat were gas prices in the Fall of 2008?

You should be asking "What happened after the gas prices in the fall of 2008"

 

[Ms Tree]

Fuel prices dropped into the $3 ranges and people started buying the gas guzzlers again and did not care that eventually prices would go back up as demand increased and our economy went over the cliff. And here we are now talking about $6 fuel. The prices will eventually drop back down to $4 or so and people will make it work just like they did with the $3 and $2 dollar gas and not look to the future. I would bet we will have this conversation several more times before people wake up and see the trend of increasing prices of a precious commodity.

 

[xUT]

We have been beating this horse since odd-even rationing in 1974. That makes it at 37 years so far.
Little progress has been made and I expect nothing will change for another 37 years.

 

[SparrowHawk]

We have been beating this horse since odd-even rationing in 1974. That makes it at 37 years so far.
Little progress has been made and I expect nothing will change for another 37 years.

Boy isn't that the truth! CAFE, Hybrids and all of those efforts are nice but so far nothing more than rearranging deck chairs on the Titanic.

I was watching one of the talking head shows the other day and someone made a point that has been overlooked in the equation. Consider Exxon-Mobil, one of the worlds largest if not the largest oil companies. Exxon-Mobil does more than half of its business outside of the US. They own access to Billions of barrels of oil in the US. There is no valid business reason for them to drill for additional oil as it will drive prices and subsequently profits down.

The current run up is a result of all the factors others have mentioned. Leadership has been in short supply for the last 37 years as we have been governed by Globalists from Nixon going forward to this very day. Eisenhower warned us and we didn't listen. At time marches on I'm beginning to think Eisenhower was a far better POTUS than he gets credit for.

One thing he did that in my mind made him a great man was at the end of WWII as the Atrocities of the Camps in Germany were uncovered Eisenhower rotated nearly 350,000 US Soldiers through the camps and made the German citizens clean up the camps. When asked why he replied, "Because 50 years from now people will try to say it never happened". Makes me wonder what he would do if her were POTUS today.

 

[Dog Wonder]

So why is this Obama's fault?

 

[SparrowHawk]

So why is this Obama's fault?

I think I mentioned someplace that you can't lay all of the blame at his feet. A portion of the run up is natural economic forces at play which Presidents have little influence.

Where you can lay blame at his feet are:

Expansion of the crushing debt.

The Fed cranking up the printing presses to inflate away some of the debt crunch, Problem is that in doing so you devalue the dollar which make oil prices higher.

The Moratorium on drilling hasn't helped. His aversion to fossil fuels is well documented which helps encourage speculation.

One of the talking heads made the point that one thing Obama could do to immediately drop the price of oil would be to announce that we are going to permit drilling at ANWR for example. The psychological value of the announcement would drop the price.

Bottom line is this. Regardless of his control or lack thereof, Barack Obama will be a one term President if on June 1st, 2012 the average price of gas at the pump is over $5.00/Gallon. Conversely, if it falls below $3.00 then IMO Obama gets reelected. The average Joe doesn't give a rats ass about global warming, CAFE, Tea Party's, Balanced Budgets and the like. They want a good job and gas they can easily afford.

 

[777 fixer]

Consider Exxon-Mobil, one of the worlds largest if not the largest oil companies. Exxon-Mobil does more than half of its business outside of the US. They own access to Billions of barrels of oil in the US. There is no valid business reason for them to drill for additional oil as it will drive prices and subsequently profits down.

Exxon-Mobil is not even in the top ten when it comes to size. In fact there are no US oil companies in that category.