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Old February 23rd, 2012, 07:58 AM   #1
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In California, the gas prices are too high. Two reasons for this: Iran and 2 refineries are closed.



I feel that the gas price hikes are unnecessary because of the reasons stated above. All the higher ups want to do is to pocket the money while ripping us off.



There is really no need to spike the gas prices? What is your opinion?



Also, with Obama going to talk about that later, I wonder if he is PO'd about it himself?
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Old February 23rd, 2012, 11:18 AM   #2
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http://news.investor...-gas-prices.htm



When gas prices hit $4 a gallon in 2008, candidate Barack Obama said it was due to previous failed energy policies. Now that prices are heading still higher, President Obama calls it progress.



Already, pump prices are higher than they've been in previous years, suggesting they will top $4 soon and possibly reach an unprecedented $5 this summer.



President Obama is starting to notice the political implications. So he sent Robert Gibbs now a top campaign adviser out to tell the public not to worry.



"Just on Friday, the Department of the Interior issued permits that will expand our exploration in the Arctic," Gibbs said Sunday. "Our domestic oil production is at an eight-year high, and our use of foreign oil is at a 16-year low. So we're making progress."



"Progress" isn't exactly how Obama described the country's energy picture in 2008, when gas prices were closing in on $4 a gallon. Then, it was a clear sign of "Washington's failure to lead on energy," which was "turning the middle-class squeeze into a devastating vise-grip for millions of Americans."



"For the well-off in this country," Obama said in May 2008, "high gas prices are mostly an annoyance, but to most Americans they're a huge problem, bordering on a crisis."



In August that year, he declared rising energy costs to be "one of the most dangerous and urgent threats this nation has ever faced" and that gas prices "are wiping out paychecks and straining businesses."



While Gibbs is right that domestic production has climbed in the past three years, Obama's policies had nothing whatsoever to do with it.



Oil coming from offshore wells was in the pipeline, so to speak, during the Clinton and Bush years, when those permits were issued. And the oil pouring out of North Dakota is the result of drilling on private lands.



Obama, in fact, has made it clear for years that he has no real interest in boosting domestic production.



When President Bush announced plans in 2008 to lift the moratorium on offshore drilling, Obama dismissed it, saying "it would merely prolong the failed energy policies we have seen from Washington for 30 years."



"Offshore drilling," he said, "would not lower gas prices today, it would not lower gas prices next year and it would not lower gas prices five years from now."



In a big energy speech he gave in August 2008, Obama argued that "if we opened up and drilled on every single square inch of our land and our shores, we would still find only 3% of the world's oil reserves."



And while in office, Obama's done everything he can to limit production slow-walking offshore permits, killing the Keystone XL pipeline, making it even harder to get oil out of federal lands.



Instead of aggressively expanding oil production, he offered a set of ridiculous alternatives hugely wasteful "green" energy subsidies, a call for a million electric cars by 2014 and costly fuel economy mandates that won't make a dent in consumption for decades.



With gas prices up 93% since Obama took office, we're seeing just how well this approach works.
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Old February 23rd, 2012, 11:30 AM   #3
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The reason for a spike in prices is threefold:



1) Iran and tensions stemming from that situation

2) The latest reports showing the economy improving and therefore higher consumption

3) Speculators on Wall St. also seeing the better numbers for the economy of late and betting on a more increased demand.



And the real problem in there is the speculators.
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Old February 23rd, 2012, 11:44 AM   #4
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That's a very misleading article, Highway.



Gas prices may be up 93 percent since Obama took office, but prices had been bumping $5/gal in summer 2008, and then mysteriously crashed near the end of 2008. Sure, reduced demand because of the recession played a role. But, this gas price concern is election year politics mostly.



Quote:
Chart: Why the GOP's Gas Price Attack on Obama Is BS









Driving back from the mountains this past weekend, I commented to my wife how unusual it seemed that we weren't hearing too much public bitching about $4-a-gallon gasoline, because that's what it costs right now in California. But I spoke too soon. When we returned home, there was the Sunday New York Times with an A1 story on exactly that, describing how the GOP leadership planned to attack Obama on the issue, blaming him for high gasoline prices.



This is the sort of well-worn populist trick that gets people riled up even when there's no substance to it. I created the chart above using an Energy Information Administration data set on weekly retail gasoline prices (excluding taxes) in selected countries. I used premium unleaded because the numbers were more complete.



Okay, so what do we see here? Does it look like domestic gas prices (black line) are responding to the policies of one American president or another? Note the peak toward the right: That's the summer of 2008, when George W. Bush was in office. The price crash that follows bottoms out in late-December 2008/early-January 2009, shortly before Obama took over.



Now certainly America's oil consumption, and to some degree our policies in the Middle East, affect global oil prices. Refining capacity is also a factor, and it happens that an unusual number of US refineries have been shut down recently by their operators. (The West's confrontation with Iran is also having an effect, according to this news report.) But we are also clearly in lockstep with global price trends. So if you want to blame Bush for that peak or credit him for that crash, or you want to blame Obama for the subsequent rise in prices, then you should also blame and credit German Chancellor Angela Merkel, French President Nicholas Sarkozy, and the rest of 'em.




Other than dip into America's strategic fuel reserves, an American president can do at least one thing to directly influence domestic prices: He can push for a higher or lower federal excise tax on gasoline. Let's look at the same chart with taxes (state and federal) included. The first thing you'll notice is that we pay far less for gasoline than European citizens because they tax it so much more heavily. See how we split away from the pack?And since these numbers are not inflation-adjusted, the increase in price since the 1990s is not as big as it seems.





Of course, the guys who want Obama's job claim that he wants to make America just like Europe. A question to test that theory: How much more federal tax do you pay per gallon under President Obama than you did under George W. Bush?



Answer: less than zero.



The federal excise tax on gasoline has remained largely unchanged at 18.4 cents per gallon since 1993. This flat figure that isn't pegged to inflation, which means that the value of the revenue from the tax has steadily deteriorated, which, in turn, has made it harder to fund highway repair and all that stuff. It's the states, in any case, that levy most of the gas taxes. (See the chart on page two of this document to see where yours measures up.) If Congress were to raise the federal gas tax by a few pennies, which it really should (but won't), you'd never notice the change in your bank account.


http://motherjones.c...ce-attack-obama
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Old February 23rd, 2012, 11:49 AM   #5
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This is going to be interesting, IT. You mentioned election year politics. And the GOP'ers blame Obama for the rising gas prices. So now picture Romney, Santorum, Paul, and Gingrich in more debates with each other in some state that has not had the primaries yet.



Here is Joe Q. Public, frustrated because of the rising gas prices, asking those four guys on what they are going to do about the rising gas prices. I am curious as to what their answer would be. They probably won't have an answer for it, except keep on blaming Obama for it.
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Old February 23rd, 2012, 11:50 AM   #6
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It's from speculation and tensions with Iran and a better economy.
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Old February 23rd, 2012, 11:52 AM   #7
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So let me see if I have this right......In 2008 when gas went over $4 a gallon it was Bush's fault. But when goes over $4 a gallon this year it's not Obama's fault. And the left wonders why we call them "hypocrites".



http://www.journal14.com/2012/02/22/...-elses-faulty/
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Old February 23rd, 2012, 12:00 PM   #8
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The "left" isn't wondering anything about you. They know that you all are nuts. Speculators on Wall St. and deregulating our financial institutions are what allows for that to happen under Bush.



As far as this time, we were all talking about 5 dollar a gallon gas last summer. This isn't surprise or a shocker. OPEC is a cartel and we are paying less than most people are for gas around the world. Fossil fuels are not infinite in supply and geopolitics plays a part as well. Tensions with Iran and speculation are driving up the price once again, along with more confidence that demand will rise.
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Old February 23rd, 2012, 12:05 PM   #9
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Quote:
Originally Posted by Tony Perkins View Post
So let me see if I have this right......In 2008 when gas went over $4 a gallon it was Bush's fault. But when goes over $4 a gallon this year it's not Obama's fault. And the left wonders why we call them "hypocrites".



http://www.journal14...e-elses-faulty/


It's all a stupid, political blame games with no basis in reality. From the OP:



Quote:
Now certainly America's oil consumption, and to some degree our policies in the Middle East, affect global oil prices. Refining capacity is also a factor, and it happens that an unusual number of US refineries have been shut down recently by their operators. (The West's confrontation with Iran is also having an effect, according to this news report.) But we are also clearly in lockstep with global price trends. So if you want to blame Bush for that peak or credit him for that crash, or you want to blame Obama for the subsequent rise in prices, then you should also blame and credit German Chancellor Angela Merkel, French President Nicholas Sarkozy, and the rest of 'em.
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Old February 23rd, 2012, 12:07 PM   #10
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Quote:
Originally Posted by waitingtables View Post
The "left" isn't wondering anything about you. They know that you all are nuts. Speculators on Wall St. and deregulating our financial institutions are what allows for that to happen under Bush.



As far as this time, we were all were talking about 5 dollar a gallon gas last summer. This isn't surprise or a shocker. OPEC is a cartel and we are paying less than most people are for gas around the world. Fossil fuels are not infinite in supply and geopolitics plays a part as well. Tensions with Iran and speculation are driving up the price once again, along with more confidence that demand will rise.


All true WT, and one more factor: Inflation.



It's impossible to create trillions of dollars without inflating the currency.



Prices going up is popular way of saying the value of the currency is going down.
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