The price of gasoline

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   peoplepower73posted 11 years ago

   Obama was blamed by the conservatives and the Romney camp for the price of gasoline increasing.  Now that it is coming down, does he get credit for it?...something to think about!  Your thoughts please.

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      Wayne Brownposted 11 years agoin reply to this

      The price is coming down on the basis of seasonal demand which occurs in the fall.  Consumption goes down and inventory goes up on refined gasoline. Once we are through the winter...the same situation reverses again.  That aspect has nothing to do with Obama, Bush or Calvin Coolidge.  At the same time the price of gasoline is still relatively high relative to what it was when Obama took office and remains so in that a barrel of crude oil has an elevated price due to both global demand and the impact of market speculation.  Gasoline is gasoline and cannot be turned back into crude oil thus the inventory has to be sold and that pushes the price down seasonally with demand.  Crude oil, unrefined, has much more flexibility. On that basis, if we can up the amount of crude oil resources coming from domestic production, we can have some impact on lowering the price of a barrel of crude thus resulting in lowering the price at the pump via competition.  Obama has done little for domestic production having reduced it on government controlled lands.  Any increase we get in production must come from private land sources.  In that sense, Obama had made his contribution to higher gasoline prices and sustained them on a relative scale. ~WB

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         livewithrichardposted 11 years agoin reply to this

         I think you have your facts wrong.  Oil production on public lands is higher than it was in the last 3 years of the Bush administration; 12% - 14% higher.  I believe there are 131 oil companies that hold federal leases on over 20 million acres but very little of that land is being explored yet they continue to request new leases for even more land (I refer to dry land as well as offshore land.)  Half of all of those lease are controlled by the top five oil companies (BP, Chevron, Shell, ExxonMobil, ConocoPhillips)  The 126 smaller companies are drilling away and adding to the global supply.  Seems to me that the top 5 companies, by not exploring and drilling on the leases they hold, artificially control the majority of the US supply and can manipulate the price any time they want.  Further, roughly 85% ownership in the top oil companies are held by shareholders through pension funds, IRA's, mutual funds, and individual investors. Heck, I'm pretty sure I'm vested in them through my own funds.  So, if these companies add more oil to the supply then the cost of oil/barrel will fall and so will all of our retirement funds.
         
         It's a delicate balance... add more oil through higher production rates and you create more jobs..supply exceeds demand and we have lower prices at the pump which benefits the entire country... or continue on doing what they are doing now and then only the shareholders benefit.  Either way, I win either in dividends or at the pump.  But this is not President Obama's doing, this is the call of the leaders of big oil.

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         Quilligrapherposted 11 years agoin reply to this

         Howdy Wayne.
         
         Actually, the average price of gasoline (all types) was $1.52 per gallon in January 2001 when President Bush entered the oval office. The average price nearly tripled to a peak of $4.14 in July 2008 and it has not been that high again for over 4 years. The price dropped to $1.79 by January 2009 due to recession pressures. It has been rising ever since but never reached the peak seen during the Bush years.
         Q.
         http://data.bls.gov/cgi-bin/surveymost?ap  sellect “Gasoline, Unleaded Regular”

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            Barefootfaeposted 11 years agoin reply to this

            So by all means feel really good about $3.50?
            As I pointed out there were calls for hearings against Bush at 1.75.

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      Barefootfaeposted 11 years agoin reply to this

      Then why was Bush to blame for it? Joe Biden was one of them pushing for investigations at 1.75 a gallon?

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   Mighty Momposted 11 years ago

   Don't all jump to answer at once, people!
   Of course he does NOT.
   More than likely some will find a way to blame Obama* for odd/even day gas rationing in NY and LI.
   
   
   
   
   
   
   *Same folks who blame Sandy for Romney's loss. And some have even said aloud that Obama wished or even "ordered" the storm so he could look presidential.
   
   It's gonna be another long four years.
   Don't expect anything or anyone to change. Just carry on in spite of the defiance.
   

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      PaulaHenry1posted 11 years agoin reply to this

      Gas going down? It went down right up to the 7th- now we are up at almost 4 again.

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   peoplepower73posted 11 years ago

   Oil and gasoline is one of those things that every president likes to make people think they have control of. They do have some control, but not to the extent to lower prices as soon as they get into office.  Oil is a world commodity that has value even if it is in the ground and not processed.  Speculators and geo-political circumstances have more effect on oil than any other factor.  Speculators who trade in the futures market can cause oil prices to move up or down more quickly than any president can, so can global supply and demand. I wish they would tell the truth, but then they would lose some leverage especially when it comes to elections.

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      Barefootfaeposted 11 years agoin reply to this

      So what was up with this???
      
      
      
      
      You just completely sidestepped this and it did happen.

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         peoplepower73posted 11 years agoin reply to this

         This is a prime example of what I said.  The reason they are blaming presidents is because they have been led to believe that presidents can control the price of gasoline...and I mean any president of any party.  I think maybe you missed my point.

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            Barefootfaeposted 11 years agoin reply to this

            So next Republican president....assuming there will be one some time or other....shouldn't be blamed for gas or oil prices or be accused of collusion with the oil companies?
            
            When pigs fly my man. You know as well as I that will be on of the FIRST things happening.

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               peoplepower73posted 11 years agoin reply to this

               I'm not saying people won't accuse them.  I'm saying they should not pledge that they can control the price in the first place.  They are leading people on by doing that.  They should come out and tell the truth and tell the people why they can't control the prices.

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                  Barefootfaeposted 11 years agoin reply to this

                  No one pledged they could control the price the were out of hand accused of collusion and price fixing. Now you know that don't you?

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   peoplepower73posted 11 years ago

   Romney said: "As soon as I become president, I will lower the price of gasoline to $2.50 a gallon."  If that  isn't a pledge, I don't know what is!

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      Barefootfaeposted 11 years agoin reply to this

      I was talking about Bush. nobody gives a rat's rear end about Romney.

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         peoplepower73posted 11 years agoin reply to this

         You didn't say that in your post!

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   SOBFposted 11 years ago

   @peoplepower73 - Maybe gasoline didn't watch the election

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