Obama's Oil Policies And High Prices

You'll Be Lucky If You Have Any Change Left In Your Pockets!

Stay On Topic Please

I decided to put the sub-headline up there because there seems to be a growing tendency by some readers to stray far from the discussion an article is supposed to generate. My primary rule, since I tend to moderate my own articles, is to try to stay on topic. The other day I wrote a Hub about high gas prices as they relate to Obama and several users came on and went all over the place with deflection. That is what it is when one does that and nothing more - deflection. So lets play by the rules of basic blogging and one of the primary rules is to stay on topic. If you care to see what I'm talking about then go to the link below, read the article if you haven't then scroll down and read the comments. The subject matter of this Hub is akin to the link but a bit different, but it remains on the lack of good energy policies and Obama. He said he was going to cut the price of gasoline and that has not happened because he had no intention of that happening. It was just empty campaign rhetoric. It sounded good. So off we go...

There are a number of factors that are contributing to what we are seeing at the pump these days and the lack of a sound energy policy by this administration is right up there at the top of the list. When your energy policy is geared toward making the cost of all energy more expensive then that is what you will see and that is exactly what we are seeing. I had to gas up yesterday as I went to work and my wallet went into spasms.

What I can't figure out is how, or why, Obama can claim there is nothing he can do about rising prices. That just isn't true because the policies he has implemented since taking office and the things he has failed to do have been a contributing factor to rising energy prices. At this point I ask that you take a close look at the graphic below and note the details. Those are FACTS and specifics. Those are the result of what Obama has, or hasn't, done to insure your energy dollars stretch as far as possible. Right now they are blowing big holes in my budget. Yes, unlike the federal government I live on a budget.

Just The Facts

There may be nothing he can do about it now. It is what he has done, or failed to do, that has led us to this point now. Yes, there are other contributing factors but hi9s pursuit of chasing windmills with his green initiatives by purposely stifling domestic oil production is key. When you have the Secretary of Energy, Steven Chu, publicly states and I quote, "Somehow we have to figure out how to boost the cost of gasoline to the levels in Europe," how can anyone say that what is contained in the chart above is accidental by this administration? That is exactly what Obama wants to see happen so that he can convince the American public that he has to squander our tax dollars trying to pick the winners and losers in the energy supply field. That is his agenda and those on the left can deny it all they want. He is practicing crony capitalism to the max. Do they get that too and want to deny that also?

Now according to Obama there isn't anything he can do to relieve the crisis while real experts on the subject disagree with Obama and his elitist left wing snob crowd. Yes, I did say snobs. Here's an interesting link that lists ten (10) things that should be done and done now. I won't list them here as I know you can read the link. but the concepts there are usually known to be sound, proven concepts.

The facts are that from 2009 through 2012 oil production is down by 120 million barrels. Permits issued for Gulf of Mexico drilling are at an all time low. As the chart shows drilling plans being approved by this administration are down 23% just during the last two months. Do the math. If the historical average is 73% what is wrong with that picture? The facts are that Obama nixed the Keystone Pipeline saying there wasn't enough time to study the impact when impact studies have been going on for years. Did he fool you with that lie? Everything is pointing downward when you plug in this administration's energy policies but the price of fuel and petroleum products which are skyrocketing. And here we have an empty suit sitting up there as the President of the United States shrugging his shoulders and telling the nation there is no silver bullet to solve the problem. There is no silver bullet and I will agree with him on that. What there should be, and there isn't, is a sound domestic energy policy that will insure our nation is as close to being as self-sufficient, if not self-sufficient, in meeting our near term energy needs without busting the wallets of the consumer in the process.

We Need Sound Leadership, Not Silver Bullets.

Let me close with this video which is a real eye opener. Of course, as I found out the other day from a reader, this expert in the field who only has a PhD in the subject he is discussing doesn't know what he is talking about. I had to consider the source since I hear Obama say that about people all the time too. It seems to now be part of the left wing lexicon.

Why Aren't We Using Our Own Resources? Now There Is A Good Question?

Have a nice day. I have to work today to make more money to pay for rising energy prices, fuel prices, food prices and everything else that is going up because of the lack of leadership in our nation. But you know what? I will remember in November.

As Always,

The Frog Prince

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Comments 31 comments

NQX profile image

NQX 4 years ago from Melbourne, FL

This is how I will be rolling until November...

http://i.imgur.com/oAt44.jpg


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

NQX - Yeppers! The sticky note campaign needs to kick into high gear again. Just make sure you leave it on pump where it doesn't obscure the price.

Good to see you BTW. Join the party. Just getting into the campaign mode comfortably to point out the facts contrary to Obama's teleprompter.

The Frog


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

While I do agree that some of the rise in oil prices can be attributed to Obama's policies on oil exploration and drilling, the majority of the rise is due to tensions in the Middle East.

Our continued threats to Iran, who have in turn reacted by threatening to close the Strait of Hormus, have been one of the major drivers in the price of oil. This happens because speculation in the oil market. Last time prices were this high, experts agreed that over 60% of the price at the pump was due to speculation gone amok (traditionally that number is closer to 30%).

I do think we should expand domestic operations in oil drilling and exploration. At the same time though, I think we need to double down R&D in battery and fuel cell technology. If we doubled battery efficiency all of a sudden a Nissan Leaf with a 200 mile range becomes more appealing, whereas the current 100 mile range (in good condidtions) is way too limiting.

In either case, the best thing we could do as a nation is to expand domestic access to our own supply of oil, while simultaneously reducing our need for it. This two pronged approach would go a long way to sustaining our growth as a nation moving into the 21st century.


CMerritt profile image

CMerritt 4 years ago from Pendleton, Indiana

excellent hub with facts and infor to back it....

It comes down to common sense, and this admin does not appeal to such a standard...

Thank Frog for this hub...I am going to use it to bother some liberal friends I have.

Chris


breakfastpop profile image

breakfastpop 4 years ago

Look, this administration doesn't really give a damn about solving our energy woes. If they did we would be drilling, exploring and approving projects that could get us to where we ought to be. Obama could do a lot to help lower the prices at the pump, but he just isn't in to it. When Bush was president the media was all over him, but the Prince of Chicago gets a pass. It's maddening, but your hub is awesome and voted that way.


Rickgyver 4 years ago

Froggy,

I have heard people say they have a great use for the silver things but DHS frowns on it!


drbj profile image

drbj 4 years ago from south Florida

You know, Jim, sometimes I think I'm living in an alternate world where brainless robots rule with Energy Secretaries like the U.S. who says, "... we have to figure out how to boost the cost of gasoline to the levels in Europe." Does that make sense? Not to me! Then I wake up and realize it is not a dream and brainless robots ARE ruling the U.S. We cannot let this regime (and that is exactly what it is) rule for another 4 years!


CHRIS57 profile image

CHRIS57 4 years ago from Northern Germany

Oil prices are world market prices, whoever contributes to the supply or demand side. The thing is that for over a year there is an oil shortage of some 1%, oil stock is drained.

http://omrpublic.iea.org/world/wb_sktot.pdf

Of course that lets oil prices go up. And of course in these times it may be a good idea to drill for domestic oil. But does that really help?

If i interpret figures from above link (and other data from the OECD) correctly, then the oil market is volatile in the range of 1 million barrel/day for a one year period. So to make up for that, domestic oil production would have to adapt accordingly (for example increase domestic production for at least 15%).

Is it possible? To indicate what that means: production would have to go up 360 million barrel/year, that is 3 times the quantity, that was attributed to production loss in the Mexican Gulf.

If you look at the oil consumption rise of BRIC economies, especially China, then any increase of domestic production may help in terms of trade balance, but not much will be seen at the pump, simply because emerging market oil demand is rising dynamically at much higher rates than the US has (oil producing) options to counteract.

What about decreasing consumption and getting more efficient? Would help much more.


Old Poolman profile image

Old Poolman 4 years ago from Rural Arizona

For many, these current and constantly rising gas prices are merely another pain in the rear. For others, these gas prices can mean they are no longer able to commute to their place of employment. For them to have to give up their job because they can no longer afford to get to work is nothing but a crime. I wonder if these unfortunate people would be counted in the ranks of the unemployed?

Looking at how supply most certainly affects the the oil prices, utilizing more of our own certainly would not hurt anything. I agree we need to get more efficient, but we have the oil here in our own country and we need to do both. I hate hearing our President saying there is nothing he can do about gas prices, he is causing the problem by banning drilling and the pipeline.


poetvix profile image

poetvix 4 years ago from Gone from Texas but still in the south. Surrounded by God's country.

The ever rising price of gas is just yet another way he is swiftly devastating our economy. We are getting close to a breaking point. You know, with the election coming and political lunacy such a hot topic, you would think the President would be trying to reverse the downward trend, but not, as you point out, he just says he has no control. He does things over and over to the detriment of our economy and has yet to one time accept responsibility for anything. Awesome hubbing and of course voted up!


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

As I said in the end, I had to work today to be able to afford to keep up with the rising prices associated with all of the things that are attached to fuel prices - just about everything. The price of fuel has doubled under this administration. That's an indisputable fact. So let me see.

political zealot - The unrest in the middle east isn't anything new. I lived through the 70's oil crisis when the Arab nations basically cut off the supply. That's what happened. In light of that being about 35 years ago, don't you think that the wise men who are supposed to be governing this nation would have a clue that we don't need to be dependent on the whims of that region? We have the resources here to break their back and strangle hold. Lets try using our heads and taking care of the US of A first and foremost. Look at the chart and do a correlation about policy and where we are. Oil production runs in 3-5 year production cycles. Obama can't take credit for much.

c merritt - The truth bothers some people. They would rather be a slave to some nitwit politician who is only interested in one thing - getting reelected.

BPOP - There are enough videos out now where Obama has openly stated that his policies are about raising the price of our energy needs so he can exercise his outrageous windmill agenda. I've posted a few along the line but some readers don't watch, and bother to hear, exactly what Obama said. It's called connecting the dots.

Chris - Yes, the production of oil helps. Despite whether we like it or not, the world economies run on petroleum and that isn't going to change anytime soon. I'm a realist and not a pipe dreamer.

OP - Obama says he is so worried about the middle class. The middle class and poor are the hardest hit because he wants some green agenda to happen today, if not yesterday. He has his agenda and the middle class and poor aren't on it.

poetvix - Obama is an ideologue. Nuff said?

The Frog


Ghost32 4 years ago

As one of the few (and sometimes the only) reader who's actually worked in the energy industry on and around the drilling rigs AND (at another period in my life) built a multimillion dollar direct sales business I consider myself at least somewhat qualifed to make the following observations:

1. World prices are a factor, but home grown considerations are bigger factors.

2. The biggest single factor of all when it comes to gas prices: CONFIDENCE (or the lack thereof). Not consumer confidence, but the confidence level within energy companies and the middlemen between them and the gas pump.

3. That said, defeating Obama in November is one sure way the President CAN directly impact oil prices. If the anti-driller in Chief goes out, gas prices go down. No doubt whatsoever in my mind about that.

Maybe not instantly, but within a matter of months at most.

4. Expanding drilling is definitely important as well. Duh.

But busting Obama out of the Oval Office is Job #1.

Remember in November!


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

Oil speculation wasn't rampant in the 70s. Technological changes have allowed anyone with a couple of grand to trade in the oil markets. One of the biggest problems back in the 70s was trying to fix the price of oil. Price fixing never works.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

Fred - That is job #1. We need to get Obama out of the People's House. His inexperience has done far too much damage.

You know I'll remember in November. Lots of those blood suckers that have been sitting up there for decades need to go right along with Obama.

pz - Speculation is over rated. It would prove to be not worth the risk with an ample supply of crude coming out of the ground. Just why do you think the speculators are going in the other direction? Connect the dots - Obama's energy policy or lack of it really.

They just caught Chu on tape again saying that "no, the administration doesn't want the price of oil to come down." Again connect all the dots, not just the ones you wnt to draw a line between.

The Frog


Partisan Patriot 4 years ago

Great read Froggy; rated up and awsome. Remember when His Majesty said he didn't mind $4.00 a gallon he just wished it had not risen to that level so quickly?

Well wonder what he'll say when it hits $5.00 a gallon?


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

How is it overrated that deregulation of OTC derivatives in 2000, which allowed for rampant speculation in oil markets, has an impact on the price of oil? This is a new thing, not old.

Currently, it is estimated that 60% of the price of a barrel of oil comes from speculation alone. Before OTC markets were deregulated, that number was closer to 30%. That means at $100 a barrel, rampant speculation accounts for an additional $30 per barrel. Gas prices would not be this high if a barrel was $30 cheaper.

I don't disagree that Obama's policies towards oil are also contributing to the problem, but to ignore the facts about how speculation contributes the the gas prices is to ignore reality. Speculation is not overrated.


teaches12345 profile image

teaches12345 4 years ago

Great education on the political move on energy resources. I agree that we need to explore America's potential for providing energy resources. Yes, his policy has influenced the high prices we see today at the pump. It is amazing how he can control some issues (without our input) and others (those that hit our wallet) he throws up his hands and backs off. The video was a good follow to your article. Thanks for posting this great arguement!


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

PP - He'll shrug his shoulders, say there is nothing he can do and suggest pond scum as the solution. Obama isn't the solution to the nation's problem. He is the problem. I wonder how many people read the link above myself.

pz - Your percentage is way too high. Speculators operate on what they think is going to happen based upon a number of factors, government policy being high up there in the oil market. Drill. Baby, Drill and see where the speculators go - other markets.

teaches - I'm just here to inform. Others want to throw all the additional factors into a Hub that is about Obama and his administrations lack of a coherent energy policy pertaining to drilling for our own oil. Oh well...

The Frog


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

No doubt if we drilled more here there would be less speculation, but I think you are underestimating the effect of speculation on the market. Keep in mind, rampant speculation has been enabled by financial innovation and deregulation of the OTC market. The percentages I cited are the best numbers I can find on the subject. If you have better numbers let me know.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

pz - Since this article isn't about speculation but about policy then I'm not underestimating anything.

The Frog


b. Malin profile image

b. Malin 4 years ago

Pity the Poor Man or Woman who has to go to work and drive a few miles EVERYDAY...with no raise and not knowing if they have a job to go to the next day...Yes, I think we should Drill or do the Pipe Line, whatever it takes to give back jobs, and have cheaper gas prices and oil prices. My son paid $750.00 to fill his oil tank to have heat, he lives in Connecticut...it's COLD THERE. Good, Good, Hub, Froggy!


Old Poolman profile image

Old Poolman 4 years ago from Rural Arizona

If oil speculators were required to actually take delivery of the product there would not be so many of them. Change the rules and solve the problem.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

OP - Exactly. When they changed the margin requirements back a while ago the price of oil dropped. If they were required to take delivery, as they should be, all the artificial speculation would indeed disappear.

The Frog


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

I completely agree with both OP and Frog. Change the requirements on margins and deliverable and all of a sudden we'll have less price swings while still protecting business that benefits from hedging on oil (like airlines who actually take delivery). Sounds like a no brainer. So why can't we do it?


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

pz - POLITICS?


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

Yes, but politics sway when public opinion sways. I barely hear any awareness about speculation and the simple steps (as you and OP highlighted) that could resolve the rising prices due to it. It's not rocket science. It just takes leadership from someone in Washington and everyone rising up and demanding the change. Unfortunately, leadership in Washington from both parties is severely lacking.


politicalzealot profile image

politicalzealot 4 years ago from Atlanta, GA

Now that dems have come out and blamed speculation, the chances of any action on it is zill to none. Such a shame that when one side comes out for something, the other side automatically by instinct comes out against the claim. We need more leadership!


lifelovemystery profile image

lifelovemystery 4 years ago from Houston, TX

Kudos to The Frog Prince for thoughtful and concise points about the failures of this administration to work for the American people and to develop sound energy policies. For Obama to claim that there is no silver bullet is absolute nonsense. He is once again passing blame, taking none of the heat, and failing to learn any lessons. Sir, you can add me as your latest fan. Great job!


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

lifelovemystery - All Obama knows is to deflect, blame and berate those who know his policies are the failure that they are. It's hard to learn anything if you think you already know everything.

TFP


lifelovemystery profile image

lifelovemystery 4 years ago from Houston, TX

Very true.


The Frog Prince profile image

The Frog Prince 4 years ago from Arlington, TX Author

lifelovemystery - Well Obama tells it one way and I tell it the real way. It's his lie so he can tell it like he wants to. Many people now have their eyes wide open.

The Frog

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