Like Low Gas Prices? Don’t Count On Them Staying With Obama In Charge

Back during the campaign, National Review Online reported this exchange between CNBC reporter John Harwood and Barack Obama. This took place in June when gas prices were around $4 a gallon.

Barack Obama: “We now know that our demand (for oil) is badly outstripping supply with China and India growing as rapidly as they are.”
John Harwood: “So could the (high) oil prices help us?”
Barack Obama: “I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing.”
Here’s the video of the exchange:

Since the traditional media gave Obama such a pass, many of you may never have seen this story before. But it is clear that Barack Obama has no problems with $4 a gallon gas per se, prices have just happened to go up faster than he would have liked.

Now fast forward five months and gas prices are lower than they have been in years. That’s a good thing, right? Well not if you’re a liberal. The same journalists that were in the tank for Obama are now advocating an increase in the gas tax. And as we’ve seen before, Barack Obama has not qualms with Americans paying over $4 for a gallon of gas.

In an editorial on Nov. 16, 2008 called “Raise the Gas Tax“, the Washington Post says, “Energy independence won’t happen if falling gas prices lead to a resumption of bad habits.” And what are those “bad habits?” Why driving to work, of course, and other “bad habits” like taking a cross-country family vacation, and buying an SUV.

So enjoy the low gas prices while you can and you better start preparing yourself for an Obama imposed tax on the gas that is fueling your “bad habits.”

Obama Wants to End the Age of Oil and Send Us Back to the Stone Age

About a week ago, Barack Obama said, “we must end the age of oil in our time.” (see nationaljournal.com)

This seemed like an irrational statement, and it got me thinking about what is oil? What is made from it? And why would Obama want to get rid of oil and everything that is derived from it?

Oil or petroleum “is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds.” -http://en.wikipedia.org/wiki/Petroleum#Fuels

Petroleum-based fuels (gas, diesel, jet fuel, etc) most people know about; they make modern transportation possible. But let’s take a look at a partial list of petroluem-based products, many of which most people do not realize come from oil:
Kerosene
Natural gas
Car bumpers, light covers, and other parts
Lubricating oils and grease
Heating oil we use to keep our homes warm
Moisturizers and lotions
Paints, lacquers, and printing inks
Paraffin wax used in packaging, candles, matches, and shoe polish
Asphalt we use to pave our driveways and roads
Linoleum and other laminate flooring products
Shingles for roofs
Plastics found in a plethora of everyday objects:
-CDs and DVDs
-bottles and containers of every kind
-scotch tape
-baggies
-shower curtains
-toys
Synthetic rubber
Synthetic fibers found our clothing, fibers and textiles
Medicine/drugs
Detergents
Vinyl (for fences, furniture upholstery, etc)
Tar
Styrofoam for cups, packaging material, etc.
PVC pipe for indoor plumbing, sprinklers, etc.
Nylon rope
Computer monitors, printers, keyboards
Plastic film/saran wrap
Microwavable packaging
Toothbrushes
Contact lenses
Teflon used on most kitchen pots and pans
Formica
Many medical implant applications
Glues and adhesives
Ceramic cups, plates and bowls
http://ezinearticles.com/?Petroleum-Based-Components-Used-in-Products-You-Never-Realized&id=815584

The list could go on and on, but as you can see, nearly every modern convenience and technology that has improved our lives over the last 100 years has had petroleum or an oil-based product as a key component. And this is what Obama wants to put an “end” to?! Because of an irrational religious adherence to the global warming hoax, Obama, the Democrats, and environmentalist wackos have declared war on oil and they have made it the focus of evil in the world.

It is irrational to have such animosity toward a naturally occurring substance in the earth. And if Obama and the environmental wacko leftists get their wish to “end the age of oil” they will be throwing us back into the 19th century. We’d all be driving a horse and buggy and living in log cabins…I take that back, the liberals probably wouldn’t let us cut down trees to build log cabins. Well, I’d prefer to stay in the 21st century and enjoy the modern conveniences that God has blessed us with. And despite what Obama and the leftist environmentalists say, there is still plenty of oil left in the earth, much of it right here in the United States of America. Drill here. Drill now.

No Ethical Compass About the Price of Gas…How About Taxes?

For the second time in this year alone, executives from the major oil companies have been summoned to testify before Congress, regarding the reasons for high gas prices. This entire process is a circus and designed solely to allow politicians, in an election year, to tell their constituents that they are fighting to relieve their “suffering” at the pump.

The primary cause for high gas prices lies in one of the basic principles of economics, low supplies and growing demand, something which many politicians, particularly Democrat politicians, fail to grasp. The Democrats’ own policies preventing the drilling of oil in the United States (in Alaska, off the coast of California, and in the Gulf of Mexico) and preventing the construction of new refineries are contributing to the shortages in supply. The continued economic growth in India and China are the primary factors increasing the demand for oil.

This quote demonstrates what a circus this inquisition of the oil executives is. Diane Feinstein, Democratic Senator from California, said this, “you rack up record profits, record profits, quarter after quarter after quarter, and apparently have no ethical compass about the price of gasoline.”

How about your ethical compass about the burden of taxes, Senator Feinstein? You’ve never seen a tax increase you didn’t like (see her record below). The average American pays a third of their income in taxes. At least when we buy gas we have something to show for it. At least when we buy gas, the oil companies have done work to earn it. Congress demands we pay taxes, gives us relatively little to show for it, and will throw us in jail if we do not pay it.

I don’t worry so much about abuses from businesses, the free market tends to work those things out. I do, like the founding fathers, worry about abuses from the government, like over-taxation, bloated government, and officials over-reaching their authority, which is precisely what is happening with this witch hunt.

Diane Feinstein’s Record on Taxation and Oil Production from OnTheIssues.org
:
Voted NO on paying down federal debt by rating programs’ effectiveness. (Mar 2007)
Voted NO on $40B in reduced federal overall spending. (Dec 2005)
Voted NO on prioritizing national debt reduction below tax cuts. (Apr 2000)
Voted NO on Balanced-budget constitutional amendment. (Mar 1997)
Voted YES on removing oil & gas exploration subsidies. (Jun 2007)
Voted YES on disallowing an oil leasing program in Alaska’s ANWR. (Nov 2005)
Voted YES on banning drilling in the Arctic National Wildlife Refuge. (Mar 2005)
Voted YES on removing consideration of drilling ANWR from budget bill. (Mar 2003)
Voted NO on drilling ANWR on national security grounds. (Apr 2002)
Voted NO on preserving budget for ANWR oil drilling. (Apr 2000)
Voted NO on do not require ethanol in gasoline. (Aug 1994)
Voted NO on repealing the Alternative Minimum Tax. (Mar 2007)
Voted NO on raising estate tax exemption to $5 million. (Mar 2007)
Voted NO on supporting permanence of estate tax cuts. (Aug 2006)
Voted NO on permanently repealing the `death tax`. (Jun 2006)
Voted NO on $350 billion in tax breaks over 11 years. (May 2003)
Voted NO on across-the-board spending cut. (Oct 1999)
Voted NO on requiring super-majority for raising taxes. (Apr 1998)
Rated 15% by NTU, indicating a “Big Spender” on tax votes. (Dec 2003)
Rated 80% by the CTJ, indicating support of progressive taxation. (Dec 2006)

Most Americas Reject Political Manipulation of Gasoline Prices

Back in October 2006 I paid $2.01 for a gallon of gasoline and I thought to myself that I would never see the day when gas dropped below $2 a gallon. Well, today I paid $1.98 per gallon. I guess Democrats only thought they would see prices this low as we approached the 2008 elections. In the month prior to the November 2006 elections, as was in the elevator at work and heard a woman remark that the republicans were intentionally manipulating the price of gas down so as to win the elections. This ‘manipulation’ was widely reported in the drive by media, one example of which can be found on the USA Today website (http://www.usatoday.com/money/industries/energy/2006-09-25-gas-poll_x.htm?csp=15). I don’t believe Bush or the republicans have that kind of power, nor could I believe that any rational person would believe such a conspiracy theory. But according to the USA Today “Many Americans look for political manipulation as gasoline prices plunge.”

“According to a new Gallup poll, 42% of respondents agreed with the statement that the Bush administration “deliberately manipulated the price of gasoline so that it would decrease before this fall’s elections.” Fifty-three percent of those surveyed did not believe the conspiracy theory; 5% said they had no opinion. Not surprising, almost two-thirds of those who suspect President Bush intervened to bring down energy prices before Election Day are registered Democrats, according to Gallup.”

Even with the drive by media propagating this insane theory, 53% of Americans realize there is no basis for this line of thinking. To me, the headline should have been something to the effect of “Most Americas Reject Political Manipulation of Gasoline Prices.”

Though I fall in with the majority not believing this conspiracy theory, I thought I would do some research into the facts of the case. If we look at retail gas prices since 1990, we do see some interesting trends, none of which, though, indicate a Bush/Republican manipulation.

As you can see in the chart (data points taken from http://www.economagic.com/em-cgi/data.exe/doewkly/day-mg_rco_us), gas prices remained relatively flat during the 1990s, then began raising for the last two years of the Clinton administration, leading up to the Bush/Gore election of 2000. If Bush did have power to manipulate gas prices, he sure didn’t use it in 2000. Approaching the elections of 2002 and 2004, again prices were on the rise, but perhaps Bush was comfortable enough with his and the Republicans re-election chances that he didn’t feel the need to manipulate down the gas prices. Now it is nearly three months after those elections in which Bush deliberately decreased the price of gasoline and gas prices continue to fall. It’s a good thing Bush is such a benevolent dictator to continue to give us low gas prices, even after his party was defeated at the polls. Or perhaps he is already getting started on the price manipulation to help his GOP buddies win in 2008. (I’m sorry; I’ve been fighting the urge to be sarcastic, but I finally gave in.)

So if it is not Bush affecting the price of gas, what is it? Could there are other factors at work here in our free market economy? I’m not an oil expert or an economist, but I am a thinker, and I think the price of crude oil could be a larger factor in the price of gasoline. Imported crude oil ranged between $10 and $20 a barrel during the 1990s (http://www.economagic.com/em-cgi/data.exe/doeme/raimuus). In 2000, prices spiked to $30 a barrel, roughly corresponding to the spike you see toward the end of the Clinton administration. In 2004, crude oil priced spiked again, this time to $40 a barrel, corresponding to the gas price increase you see as the 2004 elections approached. Throughout 2005 crude oil prices continued to climb until they peaked over $60 a barrel in the summer of 2006. Now, January 2007, crude oil prices have dropped back down to around $50 a barrel. All of these fluctuations in the gas price you pay at the pump are correlated with the ups and down of the crude oil market.

No doubt gas prices will continue to raise in the future, whoever or whatever is the culprit. A gallon of gas soon may be even more expensive than a gallon of milk. Yep, milk has consistently cost more than gas, averaging over $3 a gallon for several years now (http://www.economagic.com/em-cgi/data.exe/blsap/apu0000709112). Forget ‘big oil’, I want to know how ‘big dairy’ is keeping the price of milk so high and what their political agenda is. (Sorry, that sarcasm is rearing it’s head again.)