When Bush lifted drilling restrictions, gas prices dropped. If obomber lifted drilling restrictions, the same thing would happen today.
To most people, this is proof that high prices are caused by speculation.
The supply of gas today is not going to be affected by anything signed in washington. It takes years for drilling permits to translate into gasoline. Gasoline prices are not determined by the actual supply but by comodity traders’ expectations of future oil prices. This is what most people call speculation.
Consider the following data with specific nationation of the ‘decline’ data. Then, if you’d be so kind, show me domestic production data that correlates to your premise of Bush increased domestic production, lowering…I presume you mean….retail gasoline prices.
Below are 15 countries that sold the most crude oil to the U.S. in 2009. Oil shipments from these nations account for 91.2% of all crude oil delivered to American importers last year.
1.Canada … $37 billion (19% of total imports, down 41.3% from 2008)
2.Venezuela … $24.6 billion (12.7%, down 43.7%)
3.Mexico … $22.1 billion (11.4%, down 40.5%)
4.Saudi Arabia … $21 billion (10.8%, down 60.6%)
5.Nigeria … $18.3 billion (9.4%, down 49.1%)
6.Iraq … $9.1 billion (4.7%, down 58%)
7.Angola … $9 billion (4.6%, down 51.4%)
8.Algeria … $7.9 billion (4.1%, down 47.9%)
9.Brazil … $5.8 billion (3%, down 26.1%)
10.Colombia … $5.2 billion (2.7%, down 12.6%)
11.Russia … $4.9 billion (2.5%, down 1.5%)
12.Kuwait … $3.7 billion (1.9%, down 44.9%)
13.Ecuador … $3.4 billion (1.8%, down 51.6%)
14.Pict Pict Pict Pict Pict Congo … $3 billion (1.5%, down 39.7%)
15.United Kingdom … $2.4 billion (1.2%, down 7.8%).
Not one of these countries improved their crude oil sales to the U.S. in 2009. Russia and the U.K. both had single-digit declines. Led by Saudi Arabia’s 61% fall, the remaining 13 countries endured painful double-digit cutbacks in U.S. crude oil orders.
while objectively true, the reason that prices are high is that speculators are speculating against potential fuel futures due to the limited supply currently offered. It’s a function of mass psychology, but if The President has all of the bans lifted (for the sake of argument), the will be a well spring of release of tension for everyone as everyone will perceive a larger supply of fuel being ready in the future.
But either way, the hall is rented, the orchestra engaged. Now it’s time to see if Obama can dance.
This is becoming a very old and tired issue! NO…let me repeat…NO president can effect or affect dometic ‘gasoline or well head’ price increases or decreases. If anybody studies the charts from late 1800′s through 2008 they will note that the cumulative average price at the wellhead adjusted for 2008 USD, the average for domestic is $23, foreign $22 and combined Domestic and world average $17 per barrel. Most critical is the evidence of what triggers price on the historical charts……EVENTS…..not actual supply and demand!
That said, there was a time long ago, that supply and demand was the dominate factor and during that era oil and gasoline remained very low and constant in comparison…but that is history…not the last many decades!
Those who believe that a president can effect lower gasoline prices by declaring more domestic supply and refinery capacity are living in a fantasy world. Take for example the present! Demand and consumption is down and the prices of crude oil and gasoline is up. This arises from global market factors that has little to do with supply and demand…as historical data confirms. Crude oil is a global commodity and not an exclusive domestic commodity! Likewise, there are many grade classifications (benchmarks) for crude oil and each have their own pricing indexes. Brent blend (North Seas) and WTI (texas) are the gold and platinum of the oils in that they are the least costly to produce gasoline from….and the most expensive benchmarks.
Because of government subsidies to the oil producers, American’s, regardless of the gasoline retail price, enjoy the lowest prices of gasoline and diesel fuels in the world. However, as Americans ‘push’ to end those government subsidies and if successful, America will have the standard high prices of the rest of the world…$5-8 a gallon.
When Bush lifted drilling restrictions, gas prices dropped. If obomber lifted drilling restrictions, the same thing would happen today.
To most people, this is proof that high prices are caused by speculation.
The supply of gas today is not going to be affected by anything signed in washington. It takes years for drilling permits to translate into gasoline. Gasoline prices are not determined by the actual supply but by comodity traders’ expectations of future oil prices. This is what most people call speculation.
Consider the following data with specific nationation of the ‘decline’ data. Then, if you’d be so kind, show me domestic production data that correlates to your premise of Bush increased domestic production, lowering…I presume you mean….retail gasoline prices.
Below are 15 countries that sold the most crude oil to the U.S. in 2009. Oil shipments from these nations account for 91.2% of all crude oil delivered to American importers last year.
1.Canada … $37 billion (19% of total imports, down 41.3% from 2008)
2.Venezuela … $24.6 billion (12.7%, down 43.7%)
3.Mexico … $22.1 billion (11.4%, down 40.5%)
4.Saudi Arabia … $21 billion (10.8%, down 60.6%)
5.Nigeria … $18.3 billion (9.4%, down 49.1%)
6.Iraq … $9.1 billion (4.7%, down 58%)
7.Angola … $9 billion (4.6%, down 51.4%)
8.Algeria … $7.9 billion (4.1%, down 47.9%)
9.Brazil … $5.8 billion (3%, down 26.1%)
10.Colombia … $5.2 billion (2.7%, down 12.6%)
11.Russia … $4.9 billion (2.5%, down 1.5%)
12.Kuwait … $3.7 billion (1.9%, down 44.9%)
13.Ecuador … $3.4 billion (1.8%, down 51.6%)
14.Pict Pict Pict Pict Pict Congo … $3 billion (1.5%, down 39.7%)
15.United Kingdom … $2.4 billion (1.2%, down 7.8%).
Not one of these countries improved their crude oil sales to the U.S. in 2009. Russia and the U.K. both had single-digit declines. Led by Saudi Arabia’s 61% fall, the remaining 13 countries endured painful double-digit cutbacks in U.S. crude oil orders.
while objectively true, the reason that prices are high is that speculators are speculating against potential fuel futures due to the limited supply currently offered. It’s a function of mass psychology, but if The President has all of the bans lifted (for the sake of argument), the will be a well spring of release of tension for everyone as everyone will perceive a larger supply of fuel being ready in the future.
But either way, the hall is rented, the orchestra engaged. Now it’s time to see if Obama can dance.
Rising oil prices in 2008 were Bush’s fault.
http://www.huffingtonpost.com/robert-scheer/blame-rising-oil-prices-o_b_106433.html
Rising oil prices in 2011, Obama blames speculators.
http://www.reuters.com/article/2011/04/20/us-usa-energy-obama-speculators-idUSTRE73J1NN20110420
Rising oil prices in 2008 were Bush’s fault.
Rising oil prices in 2011, Obama blames speculators.
blame the messenger (speculators) not the message (state of economy)
the truth is the economy is not improving; the president’s economic policies are suffocating; and the middle east is getting ready to erupt
obama has no intention of lowering energy prices (high prices are necessary for the statist takeover)
the whole notion of cutting dependence on foreign oil begins with producing our own domestic supply
This is becoming a very old and tired issue! NO…let me repeat…NO president can effect or affect dometic ‘gasoline or well head’ price increases or decreases. If anybody studies the charts from late 1800′s through 2008 they will note that the cumulative average price at the wellhead adjusted for 2008 USD, the average for domestic is $23, foreign $22 and combined Domestic and world average $17 per barrel. Most critical is the evidence of what triggers price on the historical charts……EVENTS…..not actual supply and demand!
That said, there was a time long ago, that supply and demand was the dominate factor and during that era oil and gasoline remained very low and constant in comparison…but that is history…not the last many decades!
Those who believe that a president can effect lower gasoline prices by declaring more domestic supply and refinery capacity are living in a fantasy world. Take for example the present! Demand and consumption is down and the prices of crude oil and gasoline is up. This arises from global market factors that has little to do with supply and demand…as historical data confirms. Crude oil is a global commodity and not an exclusive domestic commodity! Likewise, there are many grade classifications (benchmarks) for crude oil and each have their own pricing indexes. Brent blend (North Seas) and WTI (texas) are the gold and platinum of the oils in that they are the least costly to produce gasoline from….and the most expensive benchmarks.
Because of government subsidies to the oil producers, American’s, regardless of the gasoline retail price, enjoy the lowest prices of gasoline and diesel fuels in the world. However, as Americans ‘push’ to end those government subsidies and if successful, America will have the standard high prices of the rest of the world…$5-8 a gallon.