The Reasons For Soaring Gas Prices

Not Another One???

Even Stevie Wonder Can See Some Of This

The subtitle may cause some liberal loons to hit the "vote down" button saying I'm being hateful toward blind people but come on. I happen to like and admire Mr. Wonder. But the obvious is the obvious is the obvious. I have grown tired of hearing Obama's voice as we have to hear it too often so it was a struggle to listen to this several times in order to understand what he is REALLY saying. Take a listen.

I'll first cover his misstatements. Understand that Obama thinks the majority of Americans are stupid. When I analyze what Obama says I always have to remember to watch what he is, or isn't, doing and not what he is saying. So lets take a look see.

He starts off by telling us about 2 million jobs over the last 13 months. Remember how his stimulus plan was going to make sure that unemployment would never rose above 8%? At year end '09, it closed at 10% and had risen as high as 10.2%. He blew close to a trillion of our dollars out the window on that. And now he's worried about a 4 billion dollar subsidy to oil companies? Unemployment is still in the high 8's to low 9's depending on who is counting and who they are counting or not counting. His gain claim is ludicrous. You lose 4 million jobs and recover 2 million jobs which still leaves how many more unemployed than when he took office?

Gas prices have more than doubled during Obama's tenure He failed to explain that phenomenon. Instead he wants to hit up big oil companies for their increased profits. Of course, he wants to make big oil the Boogie Man. Nothing he has done, or left undone, has caused that increase. Right? Actually wrong. Profits go up as prices go up. Profits go down when taxes go up. But prices remain the same, of continue to go up, because those taxes are passed along to the consumer to help cover the cost of doing business. Basic economics there

Then his "scouring" the federal budget gave me cause to hit the pause. Isn't this the same guy who recently said he didn't want "one dime" to be cut from his budget? You mean to tell me that Obama and the Democrats have suddenly found fiscal religion? Isn't this the same party who were raising hell about cutting subsidies to Planned Parenthood, which happens to be the largest provider of abortions in the country? We all usually need gas but we don't all usually need an abortion. Or maybe NPR is a more worthy cause than oil? The list of things could go on about things we can do without but oil isn't on that list. He's worried about the Oil Company Boogie Man while still adding $1.6 trillion to our federal deficit this year.

His "scouring" statement reminded me of his campaign promise to "scour" the federal bureaucracy from top to bottom and get rid of the dead wood. We see how far that boogie man got our from under the bed. The stimulus created 127,000 new federal jobs, not productive jobs but jobs neer-the-less. He has added departments and regulatory czars, with attendant staffs, to new levels. If that is his definition of scouring, I'll use a sponge instead. The federal monster has grown by over 10% since he began using his scrub brush. That's some expensive cleaning in my opinion.

If he has a problem with "unwarranted" subsidies then he needs to look at his health care bill where we're subsidizing early union retirees to the tune of $5 billion. No ax there huh Obama?He's focused on lesser amounts than what his pets call for. Instead he would rather focus on political Boogie Men. Same President, different day. None of this is his fault now, according to him anyway. He's just an innocent victim like the rest of us, only he is jetting around the world on our dime. He surely feels the pain at the pump, or the grocery store or the... You get the pic I'm sure.

He contends that domestic oil production is the highest since 2003 which Politifact considers "mostly true." Here's the link so you can look at the numbers and caveats at the bottom for yourself:

http://www.politifact.com/truth-o-meter/statements/2011/mar/15/barack-obama/barack-obama-says-us-oil-production-last-year-was-/

Seems the Prez is toting big numbered increases again without mentioning that in reality domestic production has remained relatively stable over the eight year period. The percentages are minuscule compared to the demand for oil in the same period. He also failed to clue us in that the Energy Information Agency is expecting a decline for the next two years in domestic production. Lets see here. About how many years does Obama have to remain in office? Their prediction has nothing to do with his tenure. I suppose that is just a coincidence. It's the things Obama doesn't say that I watch for and cue in on. I suggest you read what Politifact says about the "facts."

"I'm not opposed to pursuing oil." From whom are you pursuing that oil Obama? Brazil? You want us become their "best customer" at an 8 billion dollar price tag. So what's a mere 4 billion?. Hells bells, that's only half of what is being forked over so Brazil can drill - baby -drill. How about we "invest" 8 billion here off our own shores and up in the ANWR to tap into our own goodies.

Finally we get to the real part of his message after he has exorcised his boogie men. What's that? The furtherance of his "green agenda." One must always have a boogie man from which to take in order to feed your own boogie man. His use of "investments" comes in here again. He's talking about "spending" again when he goes there, and he's not spending his money but ours. This time in history isn't the time to be chasing windmills and sun shine. We are still in a recession, even if Obama doesn't believe that. Most economists are predicting a double dip if oil prices continue to escalate as they have. That escalation has very little to do with Obama's Oil Boogie Man making a profit this year. Since gas has more than doubled since he took office, of course profits increase but the proportion isn't there if you examine the numbers just a little bit.

The end of his address was the real thrust of the matter. He "refuses" to scale back spending, as needed, to promote his green agenda. Everyone wants to cut something as long as it isn't there something that is being cut. Let private enterprise handle the economy, what is produced, how it is produced and the volume of production. That's usually a much better means of handling any economy versus continual interference by the federal government and trying to force something down our throats that isn't economically feasible in a tough economy.

Either that or just keep creating boogie men and hoping for the best.

Or maybe DRILL - BABY - DRILL and really break our dependence on foreign oil and his boogie men to be.

As Always,

The Frog Prince

Obama's Self-Fulfilling Prophesy

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Comments 67 comments

The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Fay - You won't ever read a personal attack you make here on one of my Hubs. Have a nice day.

This Hub had very little to do with oil companies in case you failed to notice and very much to do with your Messiah - Obama.

It is nice to know that your at least reading the truth and don't like it.


partisan patriot 5 years ago

Froggy

I gotta admit it was an excruciating 3 min and 20 seconds I experienced in a long while just listening to this Snake Oil Salesman video; when he appears on T.V. I always mute the sound.

I agree with your analysis of his stump speech but could have summed it all up in just 4 short words; he’s a lying bastard; everything is superfluous. But there are still those out there (Chris Mathews) that swoon on his every word.

I for one am sick of his attacks on Big Oil; they take a whopping 7 or 8 cents profit from every gallon while his Regime steals 23 to 25 cents. Let’s see the Oil companies explore and find the oil then drill for the oil then refine the oil then deliver the gasoline or diesel fuel to the various stations and they receive a whopping 8 cents while this bloated beast of a Marxist Regime sits back and vilifies the Oil Companies while raking in 25 cents out of every dollar; yeah that’s about right!


Stu From VT 5 years ago

FP,

Obama is so full of crap it's amazing he can walk.

His "jobs plan" focused on green jobs, updating the electrical grid, and infrastructure. The first two don't provide many long term new jobs. Infrastructure's great, but is an unemployed investment banker going to learn how to operate a pile driver? And even if you could find the workers, you can't just walk into GE and say "I need a bridge started tomorrow." The big infrastructure companies have backlogs near $100 billion. You have to wait years for a new project to begin.

The gas price crisis is mainly a result of foreign cartel pricing. Until Oblabber permits domestic drilling, this problem won't ease. But then he loses his green cred with his pinko voting base, because renewables won't be able to compete fairly priced fossil fuels. The US probably has enough oil and natural gas for over 50 years, but we can't touch it. This not only slams consumers, but it also kills jobs because it makes investment less attractive (harder to price products competitively and still make money on decent volume).

Stu


dahoglund profile image

dahoglund 5 years ago from Wisconsin Rapids

I fail to understand why vested interest groups manage to get their way no matter who is in office. Yet is absurd for us to have to get oil and other things from countries that do not really like us because the environmental lobby blocks drilling and other resources with no evidence that it is to our benefit to do what they want.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

dahoglund - To a politician this is all about their own little special interest groups that fatten up campaign coffers and very little to do with the American consumer. Most of it is about votes.


Old Poolman profile image

Old Poolman 5 years ago from Rural Arizona

We are faced with a problem that affects almost everyone in this country. Gas price increases are hurting all of us that depend on driving to get to our jobs, and companies that require a fleet of vehicles to do their jobs.

Yet I hear nothing from our leadership about a workable plan to address let alone resolve this very large problem. Words are just words, we need some action.


tony0724 profile image

tony0724 5 years ago from san diego calif

Keep givin them hell Froggy ! And also the fact that the dollar is now worth a penny may have something to do with it as well.


OpinionDuck profile image

OpinionDuck 5 years ago

Frog Prince

While I agree with what you say here, I also think that maybe we are overlooking the obvious. The obvious is that Congress and the President wanted gasoline prices to be high, very high. Five dollars a gallon is only half way to where they want it to be.

Unfortunately for their plan, the presidential election has them rethinking their position. Now high prices are bad, at least until the 2012 presidential election is over.

The congresses and presidents since the two oil scam scares of the 1970s did nothing to even reduce much less stop our reliance on foreign oil. So this is a bipartisan non verbal agreement that has been working for the past several decades.

The gasoline engine is well over one hundred years old, and that is the same engine that is running most of our vehicles today. They are tricked up with 21st century electronics but they still have the worest efficiency for engines. The electric motor is over 90% efficient.

You have to ask why the EV-1 electric car died decades ago. The hybrid engine is the best compromise for the grid locked highways of our major cities. You don't see speeds over twenty miles per hour during rush times.

The diesel engine is more versatile than the gasoline engine in the range of fuels that it can use. Yet, the federal government has made it the most expensive fuel.

Our goods and supplies are transported by trucks and trains run by diesel fuel.

Many waste products can be developed into fuels that can run on diesel engines. There are several chicken processing plants that use the byproducts to produce fuel.

Now if we can figure out how to convert most of our garbage to fuel we won't need oil period.

Thanks


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

OD - Nice to see you. Here's a good video to illustrate what you speak of.

http://www.youtube.com/watch?v=qS-ni1hYf3w


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

Obama is as happy as a pig in mud over soaring energy prices. This is exactly what he and his green buddies (sorry frog) have wanted all along.

What the green morons fail to acknowledge is that there currently is no green alternative to oil! We must have it, or we all will soon begin to starve.

BTW, our lovely government is factoring oil and food prices out of the inflation index, so they can claim all is well.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Will - Many people, those who are clueless, don't realize that oil and food aren't factored in. They removed those years ago to give people a warm fuzzy. Since the price of gasoline has more than doubled since Obama took office, he can grin and ask, "Inflation? What inflation?" The rise in gas and oil prices make everything else go up right along with it.


TheManWithNoPants profile image

TheManWithNoPants 5 years ago from Tucson, Az.

Frog,

Good job gathering and reporting. O.D.'s got it goin on too. We've been talking about foriegn oil dependance for over thirty years. In that time we've figured out how to go to Mars and gather rocks, figured out the P.C. and Internet, global positioning, and on and on, yet we can't figure out how to make an automobile run well on something besides black gold? Here's an ideal. If we can convert bull shit into gas, we'll have a never ending supply coming out of one building in Washington DC that we can supply the world with forever. The United States would gain undtoppable wealth just selling the Chinese our bull shit alone. You don't think our government sleeps with the oil companies do you? Naa .. they wouldn't do that. They love us.

jim


Pamela99 profile image

Pamela99 5 years ago from United States

I hope you continue to write these hubs that spell out the truth. Obama's actions scream something entirely different than he says. He is no leader. Voted/rated awesome.


RealHousewife profile image

RealHousewife 5 years ago from St. Louis, MO

Rated up and awesome:)


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Obviously Mr. O. and his administration are not doing a good job in fighting economic agony. But then, what does that have to do with oil prices?

It is all world market pricing, not some misplannung of the US administration, not a matter of not drilling for domestic oil.

Look at the figures from that hp:

http://www.nationmaster.com/graph/ene_oil_con-ener...

The US uses about 22% of world oil consumption. The BRIC contries consume about the same percentage. I would think by now they overtook the US, because figures are mainly from 2009.

If you compare BRIC economies with annual growth from 5% to 10% with the highly stimulated (bubble) 3% growth of the US, then who is responsible for the high demand of oil? Definitely not the US economy.

I returned last week from Russia (one of the BRIC). There filling stations charge about 4 USD/gallon for regular and they have gas shortages in Sibiria. Why? Because apparently word market price for gas is higher than the 4 bucks/gal and even state owned Gasprom sells their production on the world market at higher prices. Now, Russia is certainly an economy, that produces far more oil/gas than it domestically consumes, that should proove that more domestic drilling does not give relief.

For one thing Mr. O. has to take a large part of responsibility: Devaluation of the USD. If payed your gas bills in gold nuggets, you would not notice much price increase.


Stu From VT 5 years ago

Will,

I agree totally with what you are saying. High oil prices make currently unmarketable green alternatives viable, building his credibility with his core voting base. Obama cares more about getting reelected than the economy.

Stu


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

The high oil prices today were triggered by unrest in the Middle East, fueling speculators.

All Obama has to do is what Bush did...OK offshore drilling! In fact, if he did that AND opened up ANWR, we would quickly see $2 gasoline or less. It's not supply and demand so much as pure speculation. The mere threat of boosted US production means drastically lower prices.

But Obama does not want lower prices! He openly said he wants high energy prices and less consumption because he's in lock-step with the rabid environmentalists who think the US is greedy.

Obama's reluctance to do anything about high gas prices is deliberate. He wants it that way, and so far, the same media which raised hell with Bush over high gas prices, is giving their champion a silent pass.


Stu From VT 5 years ago

CHRIS57,

I must disagree. Production of oil is very concentrated in a few regions of the world, with the Persian Gulf being the biggest producer. Such concentration of supply leads to monopoly pricing, regardless of demand conditions. Producing significant amounts of our own oil and natural gas would get the "monopoly premium" out of the price. It's true that production here may be more expensive than in the Middle East due to drilling depths and other factors, but there would be a big offset by getting the "cartel factor" out of the pricing chain.

Stu


Stu From VT 5 years ago

Will - as usual, you're spot on. The usual supply/demand equation is bastardized by cartel pricing, and speculation about which direction the cartel premium will go in. The only solution is alternative supply, at least for a portion of the 70% of our energy that we import. I'm not insensitive to environmental concerns; we saw the tragedy in the Gulf, and we don't want to repeat it. But we don't have to shoot for 100% energy independence. If we just reduced our dependence from 70% to say 30-40%, the extra supply would force OPEC to compete for the balance, instead of extorting us as they're doing now. We could focus attention on only the safest drilling projects, and fill a portion of the imports with domestically produced energy. There has to be room for an intelligent compromise here. The tree huggers act like a complete drilling ban eliminates risk. What about the risk of fuel prices rising even higher? What about the risk of a cutoff in supplies if the US/Gulf relationship takes a turn in the wrong direction, or Iran and its satellites hijack sea lanes in the Gulf and refuse to allow passage? What the left never sees is that there is no such thing as "zero risk." The best you can do is optimize the risk/reward potentials. Shooting for anything less is just shooting ourselves in the foot.

Stu


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

@Stu,

my reasoning from my last stay in Russia is very simple.

Russia did exactly what you would think is good for your own economy, try to serve domestic market first. Didn´t work. Apparently the Russian administration does not want to subsidize domestic gas consumption, so gas goes where is payed most.

In the current situation the turmoil in North Africa and the Middle East is no help, i agree.

On the other hand, there are two ways to avoid dependancy on foreign oil: 1. (as you propose) produce own oil, 2. get more energy efficient, use less oil (cars, air conditions) and get real with green energy. America is much too vulnerable in that respect, energy consumption being between twice and triple of other industrialized and developed economies (Japan and Germany).

Last note: As long as large oil producers (Iran, Saudi Arabia, Russia, just to name a few) have more quarrel between themselves than with their custumers, there will be no monopoly pricing.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris - We've been talking about green energy for decades since the 70s oil embargo. Not much has been done. But note this. In these economic times, it isn't at all the right time to be throwing the money necessary to turn green over night. The technology still isn't there. Go up and read what TheManWithNoPants stated. He's a bit younger than I am but he is close enough to have seen what has happened to date. Obama is going to have to swallow his stupid pride. I don't have that happening with his narcissistic personality but his refusal to stop "investing" will be his downfall. The world runs on oil for the foreseeable decades whether he likes it or not.


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

Please!

There is no 'green energy' substitute for oil, so until there is, let's not pretend there is a green 'something' that will power our big farm machines, trains, tractor-trailers, airplanes, cars, and ships!

When we are talking oil, there is no green to it, so please don't throw it out there like Obama does!

(When Obama talks 'green' in relation to oil, I'm not sure whether he's stupid or perhaps thinks we are! There is no 'green' substitute for the oil we must have!)


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Will - He thinks the American people are indeed stupid. Just sit back and listen closely. I, personally, think he is dumber than a box of community organizers. Those are the type of people Obama is used to dealing with.


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Frog - as i wrote, America is much too vulnerable to oil price changes. And i am absolutely puzzled why the average American is still driving his gas guzzling SUV, doesn´t care about public transport, sets air conditioning to high and lives in paper houses (even up north) with insufficient insulation. Look at the carbon footprint.

So America better invest in new, low MPG cars, better housing insulation, improved industrial processing. Guess what that will create: jobs!

Did i write the word "green"? No.

Did i comment on the current (or former) administration? No.

Please wake up, reduce the carbon footprint and that will immediately relieve the pain.


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

" America is much too vulnerable to oil price changes."

Why?

Because we stupidly refuse to develop our own vast resources!

Why?

Because we have stupidly listened to Euro-morons going on about carbon footprints and non-existant global warming, while it never dawns on us that they never criticise anyone but the US!


Stu From VT 5 years ago

Will,

I think the only thing "green" in Oblabber's world is Mexican pot.

Stu


Stu From VT 5 years ago

CHRIS57,

Long term, you are right. But right now, manufacturing costs, distribution problems, and product compatibility issues argue against a sudden shift. I have no doubt that in a few decades things will be different. But getting from A to B is a spectrum, not a flipswitch. As we migrate over time to better ecological alternatives, we still have to survive economically. That means more domestic fossil fuels for now, to get costs down, as we continue research to get green alternatives economically viable over the next decade or two.

Stu


Stu From VT 5 years ago

Will, got it on the nail again. See my response above to Chris. This is a spectrum, not a sudden shift. Anyone who thinks otherwise is a libby moonbat.

Stu


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris - I quote from your post: "On the other hand, there are two ways to avoid dependancy on foreign oil: 1. (as you propose) produce own oil, 2. get more energy efficient, use less oil (cars, air conditions) and get real with green energy." Yes, you wrote the word green.

I take you believe in global warming? That's one of the biggest hoaxes ever perpetrated on the world. Of course there is carbon dioxide. Every time you exhale so you may want to start holding your breath.


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Frog - yes, i used the term "green" in one of above comments.

My message is though: All is about is money. That is the trigger to new developments. You don´t need some philosophy or ideology called "green" to get going. It is simply energy cost, that drives new technologies. So the word green just represents new, more energy efficient products.

Global warming? Not really an issue. Even the CO2 emission is no threat. The world ecological system is very stable, our planet went through tropical periods and ice ages with no real harm. But that was without civilization, neglecting coast and landmass change.

Whatever is happening right now with energy cost is a chance for change, for having to do something, it is not a threat.


Ghost32 5 years ago

Chris, I'm still kind of hung up on your line about people living in paper houses, even up north?? How far north are we talking here? And much insulation does it take to get past the "paper house" definition?

I only ask because I've lived as far north as 26 miles from the Canadian border and down to -46 degrees Fahrenheit, and I've yet to see anyone up there living in a paper house unless he was homeless and using newsprint for cover.

Jim: Love your line: The furtherance of his "green agenda." Read it (Freudian mind-fart) as: The flatulence of his "green agenda".

Kind of suspect my version is the more accurate of the two...LOL!

Chris: Back to you: No, it's not a threat--it's a deliberate manipulation by the Oil Hater in Chief. But you're definitely right that it's a chance for change, for having to do something, and that something is make extremely sure Obama is a one term President.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris - Right now the American tax payer has very little "change" left in our pocket. In other words, and I believe I said this up there, we can't afford the pipe dream this guy wants to fulfill in a recession which he keeps making worse.


GusTheRedneck profile image

GusTheRedneck 5 years ago from USA

Hi Froggie - "Speculators" have a way of pointing out how the future will be, at least in the way of availability and costs of commodities.

Gus :-)))


Stu From VT 5 years ago

Chris,

Frog is right. Creating an artificial spike in fossil fuel prices by denying drilling permits, passing Cap & Trade, etc. to make green alternatives marketable does not make sense. Energy prices are already killing us at the pump, and costing us untold numbers of jobs. The green alternatives have to compete with fossil fuels on their own merits, without artificial pricing manipulation by the feds. If the green alternatives one day prove to have a better economy/ecology balance than legacy fuels, great. But subsidies to both big oil and the green alternatives should stop. Each energy source should compete on its own intrinsic merits.

Stu


34th Bomb Group 5 years ago

Well done, YOU!!

Yes, I automatically change the channel when he come on TV or radio, but I forced myself to watch (listen, actually) to this.

Terrific post on that which this person attempts to slip past us at every opportunity. He's a PUNK.

"The flatulence of his green agenda" is a winner. I'll probably borrow it when I get up the nerve needed to write something here. lol!

Again - very well done. Thank you and congratulations!


Dave Mathews profile image

Dave Mathews 5 years ago from NORTH YORK,ONTARIO,CANADA

It's known as illegal taxation or taxation without representation. I do believe there was a super special "Boston Harbor Tea Party" held for just such taxation. "We the people" no longer care to exercise the God given right to object to such and sit by awaiting someone else to do it for us. Wake up America and smell the coffee brewing. If you wait for someone else the thing will never get fixed. You are allowing the president and political who you in Washington to bleed you dry to fill their own pockets and the pockets of the big oil companies and you say nothing.


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Ghost32: "Paper housing" is what i would call the double wide trailer of my childhood in the lower peninsula of Michigan. Had nothing in common with good insulation of 6 inch rock wool between double layer stone walls.

Frog and Stu: One of the principles i try to follow is - there is always time to sharpen the saw. I don´t want to find lumberjacks telling me they don´t have the time to sharpen the saw because the saw is cutting poorly.

I understand you are still suspecting some masterplan behind the oil price development. There is no masterplan, not from Obama, not from Medvedjev or Putin (remember i just came back from Russia).


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris - If you think I'm stupid, readjust your thinking. Obama has publicly stated, and this was published in the San Fran Chronicle of all places, that he wants 6-7 dollar a gallon gasoline. Here's a link. Listen as the President of the Black Chamber of Commerce is interviewed and blasts Obama. You need to listen to everything this black man has to say.

http://hubpages.com/business/Is-Harry-Alford-A-Rac


Ms Dee profile image

Ms Dee 5 years ago from Texas, USA

Tyranny in sheep's clothing. You do such a great job bringing out the truths of the matter and showing what a fraud he and the political elite really are. I look forward to your distillation of what he is actually up to. Keep them coming, Frog!


LRCBlogger profile image

LRCBlogger 5 years ago

Frog, some good points but some mis-placed blame IMO. I'm not sure if you have ever been in an executive position or owned a business but it would help you understand the jobs situation. Let's say I run a company in a terrible manner and the company is losing massive amounts of money. I leave as CEO and you take over. You would understand that there would probably be further layoffs and losses when you first take the helm due to the massive whole the company is in. However, if you are a good CEO, over time you will stop the job losses and eventually reverse the trend. Obama has done exactly that.

By the way, did you read the 'play by play' on how he made the call to get Osama. Obama is a smart guy.

Last thought, gas prices are sky high because oil is a commodity that is easily manipulated. Financial firms manipulate the heck out of oil and OPEC simply lowers production when they want a higher price. A stronger financial reform bill would have required a lot more disclosure from financial firms on their trading habits (to route out manipulation) but the GOP killed and weakened the bill. On the other hand, the GOP has called for more drilling which Obama has not supported which probably would provide some 'knee jerk' price relief but only for a very very short period of time.


Stu From VT 5 years ago

LRCBlogger,

Job losses in the US, while temporarily impacted by the psychological implications of the 2008 meltdown, have systemic roots that Obama is ignoring. High corporate tax rates, the absence of retaliatory import tariffs, excess regualtion, illegal aliens, and other artificial government constraints and interference make the US a very hard place to do business. Unless and until Obama makes a genuine committment to free markets, high unemplyment will stay with us, even after the mental shock from 2008 has faded.

Obama is a not a smart guy; the Navy Seals are.

Gas prices are sky high due to OPEC cartel pricing. Long term price relief will only come with far greater self-sufficiency in energy supplies. Until we open the doors to domestic drilling, supply will remain retrained, and we will pay a monopoly premium for energy.

Stu


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

Obama is in control of oil prices...all he has to do is announce that we will drill off the coasts, in the Gulf, and in ANWR, and the price will drop like a rock.

But the Frog is right...Obama wants gas high prices because he's a rabid environmentalist. Screw Americans.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

LRC - I own a business so do tell me about understanding jobs and job creation. I also have a degree in business. The US shouldn't be a hard place to do business and that is what made many companies go off shore. Obama is a socialist so don't hold your breath on the free market concept you want him to embrace. He has never held a job, nor owned a business, in the private sector.

Listen to the video at this Hub. He covers part of what Obama says about gas prices here. He is also the President of the Black Chamber of Commerce. It's an excellent interview about Obama. He has publicly stated he wants $7 a gallon gas prices. Reconcile that.

http://hubpages.com/business/Is-Harry-Alford-A-Rac

Our high gas prices are the result of our policies that hamper, and in many cases prevent, domestic oil production. We have some very large finds under our own territory. We need to Drill - Baby - Drill and not in Brazil.

The Frog


Stu From VT 5 years ago

Will,

I agree with your point. Also, Obama wants to solidify his credibility with his core voting base. As I said before, he cares more about getting reelected than he does about the country.

Stu


Stu From VT 5 years ago

Drill baby drill,

Not in Brazil,

Any more Obie,

And I'm gonna get ill.

Stu, Bard of South Burlington


Dilnashi profile image

Dilnashi 5 years ago from England

I have book-marked your blog as a favorite! i am now following you.I shared my twitter friends. And also great hub. Thanks again.

http://hubpages.com/technology/How-To-Write-Text-O...


Wayne Brown profile image

Wayne Brown 5 years ago from Texas

Obama is playing to his number one financier, George Soros. He worked out the deal to invest US taxpayer dollars in offshore drilling off Brazil just as Soros made major investments in Brazilian offshore drilling. Now he has gone back and invested US taxpayer dollars in refining facilities in Brazil when Exxon Mobil is telling the world that there is surplus refining capability globally which is why they have stayed away from those investments. It all boils down to the money and the work in going every place but into domestic oil production and that leaves us competing for oil on the global market....which Soros and company dearly love. Right behind oil comes the great con game to control America's coal fields and export most of that resource to China...another Soros game. You are correct in your assessment...he truly believes that Americans are stupid. His transparency is found in watching him commit his deeds openly counting on American apathy and stupidity to work in his favor. Meanwhile, America gets raped by the treehuggers who think that pillage our own industries is going to save us from the ravages of China's industrial pollution over the next 100 years. Another sham America has bought hook, line and sinker. WB


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Wayne - We are sending hundreds of billions of our dollars to foreign interests. We could be keeping that money flow in our own backyard. Sham or scam? That's what people need to examine closely.


CHRIS57 profile image

CHRIS57 5 years ago from Northern Germany

Why are so many thinking, oil pricing is heavily manipulated?

Of course oil is a commodity easy to gamble on. But manipulation means someone has to invest money into that business. Money requires payback and the greed devil is a very short sighted demon. So any manipulation can last only for a few weeks, months. Then it is cash time.

The oil price development we have today is not of the short term nature. And prices were at this level already in 2008, when world economy was running hot. Now - same situation after more than rebound of the world economy.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris - Check with Oblabber on why. His creation before the Big Oil Boogie Man was the Speculator Boogie Man.


Stu From VT 5 years ago

Chris,

Frog is correct. Futures prices (prices on long term cash swaps based on the relationship of a gallon of oil to a peg price) are based on expectations of long price trends, and in turn impact spot prices (what you pay at the pump). I appreciate that the effect is circular, but it nonetheless exists.

Stu


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

Chris and Stu - Lets take a "real" look at gas prices. I just published this:

http://hubpages.com/politics/Oil-And-Gas-Prices


Stu From VT 5 years ago

Hi Frog,

Been there, and left my erudite comment. :)

Stu


C.J. Wright 5 years ago

Nice work! I think we all have to keep in mind that we are in a capitalist economy. If EVERYONE who could started to cut back on driving, the prices would have to come down. At least we would find out how much of the cost/profits are UNREASONABLY speculative. All things being equal the daily driver has the most impact on oil prices.


LRCBlogger profile image

LRCBlogger 5 years ago

Stu/Frog, opening more drilling in the US is not going to have an immediate impact on oil (again, perhaps a knee jerk reaction but no long term affect). This is evidenced by the fact that oil production in the US was at its highest point in 8 years in 2010. Funny, that oil production in the US was higher under Obama than the GOP controlled congress and Bush.

Drilling for oil or even starting exploration takes years. Even if we do, all experts agree that there is not enough oil in the US to even satisfy 10% of our need. We can drop oil prices any time we want. ANYTIME. It works like this: Use Less!

If every person in America started taking even small steps to conserve energy, demand could drop dramatically. Imagine if everyone in this country washed their clothes on Warm instead of Hot. This one small act would dramatically drop demand. If people want to get serious about reducing our dependence on foreign oil, we first need to reduce the amount we use. That is the only way to truly have an immediate impact on cost of oil.

By the way, Stu, under the GOP, massive deregulation took place. You are making a blanket statement that burdensome regulation, lack of tariffs, etc are to blame for our high unemployment. All of these existed prior to Obama. While I don't disagree with you and believe you have some valid points, we have seen deregulation first hand (in the financial sector) and we have let the private sector completely control health care. What is the results? A massive financial meltdown that caused a global recession and healthcare that is unaffordable. The free markets are not perfect, they require smart regulation as evidenced by the 2 points I just made.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

LRC- Wanna make a bet? Dollars to donuts says that if we start drilling, and drilling in earnest, the bottom falls out of the market. Open up the Bakken reserves, ANWR reserves and the off shore territorial waters and see what happens. We have people in power who want to hamper, stop and cleanse anything and everything to see their agenda materialize. That's at our expwnse BTW.

Look LRC, the oil companies know right where the reserves are. They have well heads that are capped because environmentalists have tied them up. Surely you aren't that naive. They've done the ground work and spent the money to explore.

I reckon the small steps are inflating our tires? Maybe replacing incandescent light bulbs with bulbs with toxic mercury levels in them? Are you serious?

I suggest that maybe you read a bit more out of the Lame Stream Media. I sure do and it ain't pretty.

CJ - If I cut back anymore I'll be walking.


Stu From VT 5 years ago

LRCBlogger,

Have to disagree on most points. While you are right that there is a ramp up period, the US has large amounts of oil and natural gas reserves. They are not as cheap to access as in the Persian Gulf, but a serious, all-out drilling program would eliminate the monopoly premium we have to pay for crude oil.

Conservation will help to a degree (for example in transportation), but the home plays alomst no part in this (home energy is already mainly coal and nuclear).

Deregulation was a factor in the finance meltdown. But the healthcare crisis cannot be solved by regulating insurance, as the bulk of insurance premiums already goes to claims. The only solution is hammering provider cost (tort reform, drug importation, hospital automation, reducing Medicare reimbursements for high cost procedures to PPO equivalents, letting Medicare bulk negotiate pharma prices, etc.).

Stu


LRCBlogger profile image

LRCBlogger 5 years ago

Frogger,

you are saying that if we really open domestic drilling, oil companies will rush in, drill, drill, drill, and then flood the market with lots of new supply...thus driving down their own profits. You have quite a bit of faith in oil companies my friend. You are aware that oil companies profits have soared along with rising oil prices?


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

LRC - It's goes like this. We start drilling our own resources and consume those resources. That makes OPEC react due to the drop in demand for their oil. Study the subject LRC.

You see LRC, I have a very strong background in economics, business and production. I use the tools I learned to think things through.


LRCBlogger profile image

LRCBlogger 5 years ago

No need to be insulting. I'm simply pointing out that you are putting a lot of faith into oil companies. We've heard over and over that there is not enough oil in the US to meet even a small percent of our demand. Let's say that is wrong and their is enough to meet a large percent of our demand. If it is being pumped domestically, what is to stop exxon mobile from doing exactly what OPEC does. When they want a higher price, they produce less and create artificial shortages, etc.

You could then argue that we could still buy oil from overseas but then again, who has the logistics and capabilities to bring it to our shores? Exxon Mobil, Chevron, etc.

If you want lower prices, use a lot less and move more and more away from oil. Exxon made 10 billion in profit last quarter. 10 billion in one quarter, think about that. Now ask yourself this, how badly are they manipulating the price of gasoline and sticking it to the US consumer? 10 billion, 1 quarter...profit....wow. Poor oil companies, I can't believe we even considered taking away their subsidies. How would they survive?


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

LRC - I'm sorry you find what I said insulting. If you find the truth insulting then that's your bad, not mine. You read too much into what people say and write.

You completely miss the point of Obama's complicity in this situation. Either you miss if or you want to deny it. Check out the San Fran Chronicle article where he openly states he wants $7 a gallon gas. The connect the dots as to why.


LRCBlogger profile image

LRCBlogger 5 years ago

Lol, your source for is a website called 'politics daddy'...lol

So out of curiosity, I found the rest of the interview they cut off after Obama says his cap and trade plan would cause rates to raise. He then says the increase would be on the front end, however, over the long term, it would lead to lower energy costs. Check out politifact for the full scoop.

Bottom line is this...stop pinning everything on the president. Explore a little more on how our system of government works. Congress is really the driver and the group that creates bills. The president can get very little done without congress. Once you learn a bit more on how our govt works, you'll probably think differently about the president.

In any case, interesting hub, this was my last comment, I'm out. Thanks for the discussion, look forward to more of them.


The Frog Prince profile image

The Frog Prince 5 years ago from Arlington, TX Author

I only pin on Obama what he is due. He is inexperienced, unqualified and wants to "fundamentally change" a nation that doesn't need his type of change. I can tell that you must be very, very young. You have a lot to learn.

You're advising me to explore how our government works. It's presently broken in case you fail to notice. Take your left wing politics and go talk to those who don't have a clue.


Stu From VT 5 years ago

LRCBlogger,

Frog is right. A rampup period would be required, but if we really started granting lease sales and drilling permits en masse, OPEC would be forced to compete. The only reason they can charge a monopoly price on crude is because we are not extracting much crude ourselves.

Stu


Stu From VT 5 years ago

LRCBlogger,

Dollars of GAAP profit are not a good gauge of profitability. You need to look at free cash return on capital investment. I don't know where the numbers would come out, but oil extraction and refining is a very capital intensive business. Under such circumstances, free cash flow must be large, or it makes sense to liquidate the business and distribute its tangible equity to the shareholders in cash.

Stu


Stu From VT 5 years ago

LRCBlogger,

"He then says" - You actually believe anything this chronic liar says?


angie ashbourne profile image

angie ashbourne 5 years ago

Hi! The Frog Prince Good Hub! Angie

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