The price of gas continues to climb at a very steady pace. Oil is now up to about $128 per barrel. And, it isn’t hard to find many a liberal who is blaming President Bush for this huge inflation in the gas price. After all, when bush came into office, oil could be bought for just a few bucks per barrel.
Unfortunately, those making these accusations against the Bush administration have completely ignored the exterior conditions that Bush and his “cronies” (as they are often called) have no control over. There are many different elements that enter into play that seemingly are being vastly ignored. Many people are claiming that Bush is encouraging these high gas prices so that he and his buddies can get rich. If they really thought that, they would be buying oil futures and making tons of money for themselves!
Consider just a few of the elements that are often ignored when blaming Bush (and the Republican Party) for high gas prices:
1. It is the Democrats, not the Republicans that have consistently blocked any real effort to move away from foreign fuels, despite the ridiculous claims made by liberals. I’m watching Letterman right now, and Robert Kennedy, Jr. is blasting away at the Bush administration without really offering a viable alternative solution. They have been against anything that would bring energy production home. They have blocked production of nuclear plants, stopped drilling in our own territories, and stopped the building of any new refineries. Kennedy says that we can harness wind power and solar power (which 
is feasible, and should be pursued), but he and his company (which is making a killing off of Israel and Denmark) are doing nothing to change things here. And wasn’t it the Kennedy’s that stopped the wind farm near their family compound? I guess that fits in with the whole idea of telling me to stop drive my Durango while you jump on your private plane and jet-set around the world. These solutions are good…for everyone else.
2. Oil is controlled by the world market, not just by what happens here in the good ol’ USA. The Saudis have said that the price is going up because of the rise in the demand for oil in the Far East. Countries like China and India are increasing their demand for oil at a much faster rate than we could possibly increase it here in the USA. But, since we rely on 3 prominent dictators to provide oil for us, we have to suffer the repercussions of bowing to their demands. I think it is hilarious that liberals claim that Bush only went to fight in Iraq so that he could get cheap oil, and yet they now blame him for the high gas prices. I guess they trust you to forget one or the other when they are arguing… But don’t worry, Barak Obama is going to work it all out for us.
3. Bush has tried to do something significant to reduce the price. While Nancy Pelosi and company want to halt the gas tax for the summer (which will really not do anything for overall prices), Bush is talking with the Saudis, trying to get them to increase production. He has been blasted for this by the left as well. It is interesting that Kerry was applauded for saying (during the 2004 election cycle) that he would meet with the Saudis and try to get them to produce more so that the price would go down. But, when Bush does it, he is blasted by the same group that was applauding Kerry. I guess you can have it both ways…if you are a liberal.
4. Taxation. I guess we all know who is really responsible for that. Amazingly, no one has really complained about the profit that the federal and state governments have made off of the oil industry. We all know the Oil Companies have made billions of dollars, and so they need to have some of their profits taken away. News flash–they already have! They pay more in taxes than they make in profit. That’s right, the government makes more money off of oil than the companies that drill the oil, refine the oil, ship the oil, and put money into research and development.
5. Threat of more government interaction. Hillary Clinton has promised that she will enact “windfall profits” taxes on the oil industry. I believe Obama has done the same. This will eventually (and probably sooner than later) cause the collapse of some of the oil companies, and perhaps most of them. If the government threatens to confiscate profits, investors will avoid the market. Would you invest your money in an industry that is guaranteed to have a significant amount of profits taken away from it? I think not. Especially when that profit is going to be capped off at 3-5%! Without investors, there is no further research and development. Without research and development we are doomed to stay right where we are (no improvement). So the very act of enacting the “windfall profits” taxes will doom us to staying in the same place we currently are.
Don’t get me wrong on this issue. There is plenty of blame to go around. And, no matter who is elected, I don’t think anything is going to get better. Everything points to things actually getting worse, no matter which of the 3 democrats currently in the race wins. It is time to put a stop to the talk, and do something reasonable to alleviate the gas prices in this country! It can be done, but the democrats are going to have to stop hindering our ability to move forward. We are going to have to do several things to stop our reliance on foreign oil, and its going to take some sacrifices on both sides.
1. In the short term, we need to begin the process of drilling in our own territories. Yes, that means moving equipment into ANWAR and getting ready to drill the oil that is there. Just the threat of drilling will cause the Arab nations to produce more oil, and the prices would go down almost immediately. I know many people say that drilling in ANWAR will not lower prices for at least 10 years, but that is not true. If we threaten to start producing more for ourselves, the Arab nations (and maybe even Chavez) would start offering to sell us more oil at a lower price. They don’t want us to be able to cut our reliance on them in 10 years!
2. We need to encourage development of alternative energy sources. Most politicians are looking to the wrong place to develop these alternative sources. They want the oil companies to foot the bill for research and development in this area. That is just stupid. What incentive do they have to try and come up with a better source of energy than oil? None! They should do it through the automakers. I know there are some who have headed in that direction, but they have not gone far enough. The government should offer big tax breaks to the companies that are able to come up with viable alternative energy sources. The incentive should be big enough to actually cause the companies to put significant time and money into the development. Another option is to provide more incentives, grants and scholarships to universities that dedicate a significant amount of time and money to developing these alternative energy sources.
3. We need to understand that the problems with oil are not going to be solved overnight. Quick fix solutions just aren’t going to work. Refusing to put oil into our national reserves is not a solution, even if 97 senators did vote for it. Cutting off the national tax on gasoline at the pump will not work to lower prices. We are going to have to bite the bullet and be willing to do some things that may not be too savory to us. The democrats aren’t going to like what has to be done for the next 20 years or so to make sure that we have enough oil. Most republicans aren’t going to like the “environmental” emphasis that will be put on the research and development of alternative fuels.
I for one will be happy to let the libs claim an environmental victory if affordable energy is developed. Just don’t be stupid and try and get the cart before the horse. Kind of like listing polar bears on the endangered species list based solely on the unproven (unprovable) theory of global warming…
If you would like to make a comment, please fill out the form below.
| S | M | T | W | T | F | S |
|---|---|---|---|---|---|---|
| « Oct | ||||||
| 1 | ||||||
| 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| 9 | 10 | 11 | 12 | 13 | 14 | 15 |
| 16 | 17 | 18 | 19 | 20 | 21 | 22 |
| 23 | 24 | 25 | 26 | 27 | 28 | 29 |
| 30 | ||||||
[...] melissawest [...]
[...] Stranahan wrote an interesting post today onHere’s a quick excerptHillary Clinton has promised that she will enact “windfall profits” taxes on the oil industry. I believe Obama has done the same. This will eventually (and probably sooner than later) cause the collapse of some of the oil companies, … Read the rest of this great post here [...]
[...] Stranahan wrote an interesting post today onHere’s a quick excerptHillary Clinton has promised that she will enact “windfall profits” taxes on the oil industry. I believe Obama has done the same. This will eventually (and probably sooner than later) cause the collapse of some of the oil companies, … [...]
ummm…the prices have nothing to do with availability of oil, it is due to speculation in a market where the dollar is plummeting.
Jay, you are right…I can’t believe that I would ever think that supply and demand had anything to do with it. Thanks for clearing that up! Only in a contained socialist economy does supply and demand really not affect the market.
The Saudis obviously believe that it has something to do with supply and demand. They are refusing to supply more oil because they don’t want the price to go down right now. And the price would go down if they decided to supply more to the world markets.
Great post! I especially liked the points made on numbers 1,3, and 5. Supply and demand does have something to due with current prices. Of course, a weak dollar and a flight to commodities also has exacerbated the current run-up. I think Americans are going to have to get used to higher energy prices from here on out since we have done very little to not nearly enough to shore up our future energy demands.
vulcan, I do agree that a weak dollar can be a part of the problem…it is just not the whole problem. Such a narrow view of the problem will never lead to a decent solution!
“Only in a contained socialist economy does supply and demand really not affect the market.”
Isn’t this what today’s liberal Democrats are after? Perhaps that’s why Jay is struggling with the concept… he thinks we’re already to that point…
Sure supply and demand has something to do with it….the oil companies demand more profits and we supply them. However, there is no shortage of the product at the pump like what was going on in the 70’s. You notice that Bush’s latest trip to Saudi Arabia was not to beg for more oil….but - to- limit - its - production.
Of course…being pure supply and demand type folks that those oil producers are, they told Bush to take a hike.
Wow, Jay, you really get your ducks in a row before you post, don’t you?
President Bush went to Saudi Arabia to ask for an increase in production.
Even your friends in the liberal mainstream media got that part right.
Didn’t clarify, sorry….he wanted to limit sale to China that was sucking up more and more of the share. Bush wanted them to increase production greatly, but sell it to us alone. That’s what the Saudis said no dice about. They also stated…along with every economist in the world…that supply is not what is driving the cost. It is speculation on the availability of future stockpiles in lei of a couple of very big countries skyrocketing demand. Plus, since Bush trashed our economy, the U.S. dollar is not worth squat on the overseas markets anymore.
I’ll try to be more black and white on complex issues here in the future for you.
[...] Three Time Grammy Winning Producer Engineer James marley wrote an interesting post today on Gas Prices Continue to Climbâ
Jay-
I have to say, I haven’t seen any reports that say that the President asked Saudi Arabia to cut shipping to China. Perhaps I missed it?
Of course he asked for increased production to come to the United States. Who else would the U.S. President ask it to be shipped to?
The AP report said that economists agree that increased demand worldwide is fueling increasing prices, which means - tada! - that there needs to be increased supply to meet it. This supply-and-demand thing really gets to you, doesn’t it?
And the best part was: President Bush said the best solution was to get our own oil so we don’t have to beg someone else for it, and he laid blame exactly where it belongs - ON LIBERAL, ENVIRONMENTAL WHACKO Democrats. They are totally against any measures that would bring actual results to our energy problem, and they scream the loudest about the problems.
“”Our problem in America gets solved when we aggressively go for domestic exploration. Our problem in America gets solved if we expand our refining capacity, promote nuclear energy, and continue our strategy for the advancement of alternative energies, as well as conservation.”"
“”One of the interesting things about American politics these days is those who are screaming the loudest for increased production from Saudi Arabia are the very same people who are fighting the fiercest against domestic exploration, against the development of nuclear power, and against expanding refining capacity”
Yes, indeed, it was House Democrats threatening economic cuts to Saudi Arabia if they didn’t increase production. Yep, the hypocrites: We’re not willing to drill our own oil (which we falsely believe will ruin our environment), but we’re perfectly willing to let you ruin yours, and if you don’t, well, we’re going to threaten you.
I can understand why supply and demand are such a big issue. They are a crucial part of the free market system. Hillary and her supporters cannot stand the thought of the free market system…the government doesn’t have enough control.
I’m amazed that Bush is still getting blamed for the economic condition of this country. Yes, he had a majority in congress for his first 6 years, but the economy has tanked in the last 2…yep, democratic control.
As far as what “every economist in the world” has to say…yeah, I don’t think so. Although I am pretty impressed that you have read “every economist in the world”.
[...] President Bush for this huge inflation in the gas price. After all, when bush came into office,http://www.shootingfromtheright.com/gas-prices-continue-to-climbbush-gets-blamed-again/Palin cuts money for energy research Fairbanks Daily News-MinerJUNEAU ?? A new energy research [...]