Energy Indigestion gives Consumers Gas Pains

Nations of the world fuel prices

Netherlands Amsterdam $6.48

Norway Oslo $6.27

Italy Milan $5.96

Denmark Copenhagen $5.93

Belgium Brussels $5.91

Saudi Arabia Riyadh $0.91

Kuwait Kuwait City $0.78

Egypt Cairo $0.65

Nigeria Lagos $0.38

Venezuela Caracas $0.12

The Nation’s chief executives went on the campaign trail yesterday in their bid for re-election in November. The primary objective was to frame the message pertaining to the enduring and encompassing issue of Energy. A recent dip in the President’s favorability ratings and domestic job approval coincides with the recent spike in gas prices.

President Obama and Vice President Biden went on the attack in an attempt to discredit the recent criticism from the Republican Presidential Candidates. The message focused on the nation’s Oil output being at an all time high yet being insufficient due to ‘Market Forces.’ This evolved into reinforcing the plan for a comprehensive approach toward an all inclusive strategy regarding the nation’s energy needs.

Although it has become an annual ritual, American consumers still experience indigestion when gas prices rise. As the economy flirts with recovery, a prolonged and steady rise in gas prices could set the nation back into recession. Polling data indicates a majority of American’s believe prices at the pump are within the realm of the Presidents control.

That particular false premise was actually given credibility yesterday. Upon the rumor, President Obama and UK Prime Minister David Cameron had colluded to release 10% of their Strategic Petroleum Reserves, the NYMEX Oil Futures Market noticeably sold off. When the rumor was dispelled, the market regained nearly all of its losses.

It is widely held, Speculators account for approximately 56 cents for every gallon of gas at the pump. The once simple Supply and Demand equation for commodities has taken on worldly complexities. Unrest in the Middle East, in fact throughout the world, can change the current oil surplus to a shortfall overnight.

The fact remains when the price of a barrel of oil increases, everything consumers buy, costs more. The effects are far reaching, especially in the grocery store. Rising energy prices increase production, transportation, and retailing costs, which in turn get passed down onto the consumer. This curtails consumer spending in other areas of the economy due to the strain on an individual’s disposable income.

The cost of a gallon of gas may be the single most determinate factor when the electorate is in the voting booth. It’s the culmination of decades of failed Energy Policy; we as a nation tend to ignore, until that time of the year when gas prices spike.

The all time high price for a Barrel of Oil peaked in July of 2008 at $147.30. The price for a barrel of oil closed yesterday at $105.11, which currently equates to $4 per gallon.

Comments 40 comments

JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

Check out the latest.

April 19, 2012

Democrats Joining G.O.P. on Keystone Pipeline approval

Obama has said he would veto. The bill passed 293 to 127,

http://www.nytimes.com/2012/04/20/us/politics/demo...

4/15/12

Obama chief strategist David Axelrod

Live and uncut, scare tactics?

http://www.foxnews.com/on-air/fox-news-sunday/inde.../v/1563643318001/is-president-obama-vulnerable/?playlist_id=86913

President Obama’s 2011 tax returns rate was . 20.5 % , a lot less than his secretary

Note that Wallace questioned if the President will be sending a check to the treasury.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for your comments cnatraininginfo. I'll keep my eyes open for it.


cnatraininginfo profile image

cnatraininginfo 4 years ago from California

If you haven't seen the movie gas hole either its worth looking at. It really explains how the oil companies control the prices and why drilling for more oil will never bring prices down. Honestly I believe that gas is to cheap compared to the rest of the world gas will have to go up to about 10 dollars a gallon for it to be matched with certain countries.


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

check it out, the truth

4/01/12

STEPHANOPOULOS: This Week on CBS

the Ryan budget by Congressman Van Hollen

http://republicanredefined.com/2012/04/01/contrast


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

Check this out. In true time, uncut and the actual view un censored.

STEPHANOPOULOS: This Week on CBS

The last comment on the Ryan budget by Congressman Van Hollen was untrue and Congressman Ryan was not allowed to respond. The commentator switched to the healthcare/ supreme court hearings rather than let Ryan respond.

The video

http://republicanredefined.com/2012/04/01/contrast

RYAN: That’s private land, not public land.

There is a huge difference to producing on public land compared to private land. On public land the Government gets addition monies. Oil producers pay for leases, a royalty of approximately $ 18 a barrel besides the 40% of taxes gained from the PROFIT’S the oil companies pay. Oh ,let’s not forget AMERICAN jobs. Back in 2008 candidate Obama promised jobs? Obama did say that the government needs to increase revenues.

http://republicanredefined.com/2012/04/01/contrast...

A article

http://republicanredefined.com/2012/04/01/contrast...

High Gas prices

VAN HOLLEN says ‘’

The president has reached out to other oil-producing countries around the world. And they have got a STRATEGY now to GET MORE OIL on the market. That should drive down prices’’. Really increase production!

PAUL RYAN says ‘’Let’s get our oil that is locked on public lands by President Obama. Let’s open up the Keystone pipeline to bring Canadian oil into our country to dramatically reduce our dependency on foreign oil. It creates jobs here in America. It lowers gas prices, increases supply’’. MAKES SENSE to me!

VAN HOLLEN: Domestic oil production is at an all-time high. I think we know that’s a fact ( a half truth )

RYAN: That’s private land, not public land.

There is a huge difference to producing on public land compared to private land. On public land the Government gets addition monies. Oil producers pay for leases, a royalty of approximately $ 18 a barrel besides the 40% of taxes gained from the PROFIT’S the oil companies pay. Oh ,let’s not forget AMERICAN jobs. Back in 2008 candidate Obama promised jobs? Obama did say that the government needs to increase revenues

http://jon-ewall.hubpages.com/


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thank you Jon, happy to oblige.


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

May I add another

3/26/12

Executive Branch - POLITICS ENERGY CRISIS

Domestic drilling advocates WARN of increased global demand for oil, dwindling supply

http://www.foxnews.com/politics/2012/03/26/domesti...


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for adding perspective tobusiness. Excellent comment.


tobusiness profile image

tobusiness 4 years ago from Bedfordshire, U.K

If you Guys think you have a problem with energy in the US, save a though for us Brits.

After visiting 3 petrol station this morning, only to find they were all sold out, my husband in his quest to fill up for work on Monday morning, followed an oil tanker to its destination and waited for it to unload, luckily he didn't have too long a journey.

Just the possibility of the oil-tanker drivers going on strike was enough to send everyone in a real panic. the cost of a gallon of diesel is currently £5.80


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for your comments Lawrence Da-vid


Lawrence Da-vid profile image

Lawrence Da-vid 4 years ago

84 Percent of all automotive gasoline is wasted. Used for non-essential travel. Citizens cannot remain at home for whatever reasons and must go go go. I even have neighbors that will drive to a fast mart, directly across the street from themselves just to purchase a pack of cigarettes. Our car(s) remain parked. We might make 1 trip a week to do the essentials. Of course, the two of us do not suffer cabin fever, we can be together without much conflict. "House boss" has "house" and yard to keep her contented, while I have "garage" to hide in. Since retirement in August of last year, I have filled my tank 3 times....and that isn't actually filling. Last time it only took 5 gallons. We use that automobile for transportation to and from purchases only....not to drive for the sake of driving.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

I must say Mr. Ewall, I look forward to your comments. I believe them to be in the best interest of 'We The People.' And we have that in common. Yet, I must admit, I do enjoy taking exception to the points which we do not agree on. I believe you have come to respect that as well. So I ask, why can't are so called leaders follow the lead we have established? No need to respond...Its Rhetorical...Be well Sir.


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

check this discussion out and tell us what Fox News is doing as you proclaim.

3/25/12

http://www.foxnews.com/on-air/fox-news-sunday/inde...

White House senior adviser, David Plouffe

Unbiased and uncut! Fair and balanced?

March 25, 2012 ‘’?"The new Republican budget plan:’’ ’’smoke, smoke…’’.a liberal comments

Rep. Paul Ryan

House Budget chairman defends GOP budget plan

Last years House budget 2012 was debated and voted on and sent to the Senate in march 2011.That’s the way the process works as per the CONSTITUTION. The Senate takes the bill to the floor and debates, amends and than votes. For the past 3 Obama years ( our leader )the Senate did not allow our elected officials of both parties to carry out the duties of their office.

The We the People are being cheated by the leadership. This is the ‘’FAIRNESS’’ that our President spoke about recently in the State of the Union speech?


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

just another side of the story,

3/21/12

Democrats blame speculators for driving up oil prices

The BLAME GAME!

http://www.foxnews.com/on-air/your-world-cavuto/in.../v/1523148094001/democrats-blame-speculators-for-driving-up-oil-prices/?playlist_id=86929

Obama feeling the heat from oil producers

The TRUTH

http://www.foxnews.com/on-air/your-world-cavuto/in.../v/1523106926001/obama-feeling-the-heat-from-oil-producers/?playlist_id=86929


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

ON THURS. OBAMA makes a visit to Okla.

Check this out

Oil Workers Protest Obama Visit in Cushing, Okla.

Another Hollywood production

http://nation.foxnews.com/keystone-pipeline/2012/0...


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thank you Janbird for that piece of info in the UK. A little perspective does goes a long way.


Janbird profile image

Janbird 4 years ago from Northern England

In the UK, drivers pay in the region of $11.00 a gallon (around $2 a litre) based on an exchange rate of 1.6 dollars to the British pound. I always have a smile when I see complaints about the price of gas (petrol as we call it) in the US. Needless to say it's a major political issue here too.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for sharing that info ImKarn23.


ImKarn23 profile image

ImKarn23 4 years ago

I live in Winnipeg Canada, and the price of gas here is $1.17 a LITER. There are 3.8 liters in a gallon. 4 X 1.17 equals $4.68 (or just under). I am a believer in drilling at home - BUT - i am also a believer in strict standards and stricter adherence to them! Great info..voting up!


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

So, Mr. Ewall, I presume you believe President Obama is pandering to his Environmental base. If so, I would tend to agree. My argument would be the politics of both parties has foreshadowed the solution to resolving the issues; a pox on both their Houses.

As always, you have finely articulated a comprehensive overview of the issue at hand. For that, I thank you for adding substance to the conversation. Enjoy the Republican Primary in Illinois Sir.


JON EWALL profile image

JON EWALL 4 years ago from usa

FitnezzJim

I watched the Obama video. The video was an Obama production and was far from being truthful.He read the lines casually not like when he gives a trully campaign speech.A shameful propaganda display by the finest.

FOR THIS country not to use our own natural resources in these troubed times is unforgiving and a disgrace.


JON EWALL profile image

JON EWALL 4 years ago from usa

gjfalcone

’obama always made it clear that he was for low gasoline costs. obama says oil is the energy solution of the past’’.

Obama says that we are pumping more oil today, just another half truth because the pumping is on private land. We are pumping 30% less oil on public land (taxpayer owned ).Leases on government land to open drilling is 0 in the Obama administration. Obama says if we keep the cost of gas high, the use of oil will drop and prices will drop because the supply will be more. Than in the next breath, Obama wants to release the oil in the reserve to increase the supply. Sounds like Obama is agreeing the need to increase production of oil. All the pumping today is because of Clinton and Bush.

Allow me to clarify

1. When oil comes from private land sources, the government only gets revenue when the private companies make PROFIT. Obama complains about the oil companies making billions of profit. Why would Obama and the Democrats complain when the companies are paying (the American taxpayer, Treasury ) 40% of those profits to the treasury. WHAT A DEAL, the government gives the companies $4 billion in subsidies to search for oil, the oil companies spend more than the $ billions to find oil (on public land ) and more $millions to get permit approvals to drill. Note that without profit the treasury starves for revenue.

2.When oil comes from public lands, the government has a better deal. The oil companies pay for the leases( they are open bided on), receives a oil royalty of about $18.00 a barrel on each barrel produced. Somehow the better deal for the taxpayers is to pump on public land because not only profits are gained but the addition of lease money and royalties increase the REVENUE returns.

SHELL OIL in Alaska after spending $ millions to procure permits have been waiting 2 years for permits to drill.

In the gulf 5 oil companies have waited 2 years for the permits that have been denied by the Obama administration. The Obama administration has been held in contempt of a federal judges court order for the past 1.5 years to allow the permits to be released. The oil moratorium shut down oil in the gulf.

On 3/17/12 Petrobas, a George Soros investor of a Brazilian oil company, received the permits to drill in the gulf. Petrobas was given a US Government loan approved by President Obama when he returned from a Brazilian trip.

The President makes jokes of ‘’ drill baby drill’’ and claims that he doesn’t have any control of high prices.

On the campaign trail, Obama contends that the Republicans claims to open the drilling fields will not reduce the prices of oil. Why not try to prove the Republicans wrong? Obama’s idea to getting us off the need for foreign oil is to shut down US production. The Man is showing his true

please forgive the long reply


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Hello teaches 12345,

I thought it was interesting, its the price we pay as capitalist.


teaches12345 profile image

teaches12345 4 years ago

There is certainly a big differences in fuuel prices around the world. I wouldn't want to pay what they do in the Netherlands. Thanks for the interesting information on the gas fuel consumption.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Hey Brupie,

Sorry to hear about your flaming experience. 'User fees' vary from state to state as I understand it. They are hypothecated to transportation projects, roads, bridges, tunnels and the like. If you really have a tolerance for painful stats, check out what gas prices are in other countries. Start with Argentina.

We all get filleted from time to time. It keeps us from choking on the bones. Take care, nice to hear from you, be well.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

I don't know Lawrence Da-vid. I always associated progress with innovation which makes people's lives better. I read many of the comments, people are not giving a ringing endorsement to their wonderful lives. I suppose progression flows in both directions. Thanks for the comments, be well, and I enjoyed your profile.


Brupie profile image

Brupie 4 years ago

The idea that taxes play a large role in gas prices is my pet peeve. I've tried to explain this point and gotten seriously flamed.


Lawrence Da-vid profile image

Lawrence Da-vid 4 years ago

Gifalcone, I remember the past, where the employed lived in close proximity to their work place and were able to commute easily. Now! everyone lives remote. In my area, we have people working in one city while living in another. Now they're complaining because a toll is going to be applied to the two tunnels that connect the towns. I wonder whatever happened to the live where you work and work where you live.....but! I guess that's progress.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Hello Gypsy Rose Lee,

I always look forward to hearing from my friend in Latvia. It sounds as though the World's Energy Indigestion has evolved into a Gas Pains Pandemic. Please keep in touch regarding the living conditions in Riga, I'll keep you abreast of the situaton here. Take Care, until we 'speak' again.


Gypsy Rose Lee profile image

Gypsy Rose Lee 4 years ago from Riga, Latvia

Voted up and interesting. I'm living in Riga, Latvia at the moment and it's a real disaster here to with gas prices. The major problem is that now cars have become a necessity and many people use them in their jobs. With the gas prices as they are now people are bound to run into major problems.The price of 1 liter (1/4 gallon) of gas in Riga is Ls 0.92 and with the lousy economy and low wages wow.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for the comments teaches12345. It seems like we go this each year. Then we reexamine our future energy needs, then the prices subside and we leave it till next time.


teaches12345 profile image

teaches12345 4 years ago

Good topic for current news highlights and very informative on to what is going on with the oil prices. It seems all confusing, now we hear the oil comes from Canada? Will the price of oil really be the deciding factor for Americans? If it were all that simple. I enjoyed the read and thank you for sharing.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Hey cathylynn,

Your choice of words was unexpected and most enjoyable; "Obama bullied congress"; I wouldn't have thought that was possible or I should say, that is not the image I have of the President's relationship with Congress.

I suppose that is relatively accurate though. Well said, Thanks for your comments. Take care.


cathylynn99 profile image

cathylynn99 4 years ago from northeastern US

obama bullied congress into passing much higher fuel ecnomy standards for cars. step in the right direction.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thank you as always for your interesting comments ib rad.I tend to agree it is contingent upon an electorate to demand resolution to this as well as many other issues too far long in need of repair.


ib radmasters profile image

ib radmasters 4 years ago from Southern California

The real problem here is that supply and demand doesn't work with a monopoly, and oil is a monopoly.

It has been a monopoly ever since OPEC was formed.

The government congresses and presidents of the US since the 1970s oil scams chose to do nothing about foreign oil dependency.

Over those over thirty years of time, both parties have had various controls over congress and the presidency, yet they did nothing.

So now in 2012, we are retracing the oil climb of 2008, only this time an economic collapse in the US won't stop it. Obviously, because we are still in the cellar with the economy.

My point is that the voters should put the onus on Congress and the President of both political parties as being the responsible party for the foreign oil dependency.

There has been and continues to be a conflict of interest for the government between raising revenues from taxing fuel, and getting the country on an alternative fuel, and in the meantime reducing our usage of oil.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Thanks for your comments cathylynn99. To your point the U.S. was actually a net exporter last month; quite posiibly for the first time in its history.


cathylynn99 profile image

cathylynn99 4 years ago from northeastern US

fitnezzjim, it was actually one of obama's energy advisors who suggested letting the price of gasoline go up to the level it is in europe. the guy has since backpedaled completely and obama always made it clear that he was for low gasoline costs. obama says oil is the energy solution of the past. our country imports less foreign oil now than it did a few years ago. we are effectively reducing our reliance on foreign oil under obama.


gjfalcone profile image

gjfalcone 4 years ago from Gilbert, Arizona Author

Hey FitnezzJim,

Thanks for your input. That 2008 video could have been mistaken for 2012; the circumstances haven't changed much at all. Take care.


FitnezzJim profile image

FitnezzJim 4 years ago from Fredericksburg, Virginia

Actually I have vague recollection of seeing a video or listening to a radio show tape which had Obama himself indicating the best plan was to increase energy costs drastically. I inferred that the motivation was to create a situation in which the other possible energy sources appeared more economical in comparison to the cost of using oil.

Then again, I may have it confused with the video on electricity and natural gas prices 'necessarily' increasing.

It is at http://www.youtube.com/watch?v=dnLP12X3EgM

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