Posted on 06/15/2004 10:00:40 AM PDT by NorCoGOP
COLLEGE STATION, Texas -- Years divisible by four always bring people a degree of certainty because some things during these years are a safe bet -- like the month of February having 29 days and the Summer Olympics taking place somewhere in the world. And, coming with the arrival of the "first Tuesday after the first Monday in November," is the election of the leader of the free world.
In this particular year, however, there are some other certainties. One is that the price of gasoline is certainly going to remain an abrasive election issue and another is that the Democrats and Bush-haters will try to make it out to be one of the worst travesties to ever befall this nation.
As usual, liberals, Democrats, the John Kerry campaign and much of the media are in cahoots. Seeing that some simple distortions could paint President Bush as fiscally inept with regard to the oil industry and environmentally unconscientious, they intend to punish the president with a one-two punch in hopes that it will knock the wind out of his campaign.
But before Aggies swear off petroleum, here are some facts concerning gasoline in this country that are good for separating liberal science fiction from the truth. This is the state of gasoline and oil and of the country right now. As the evidence shows, there is no Bush-made crisis.
The most basic and shocking fact is that gasoline prices are actually below where they should be historically. According to the Department of Energy, the historical median price of gasoline after inflation adjustment is $2.05 per gallon. The current national average, without adjustment, is $1.94 per gallon.
While political drama queens are busy whining about "exorbitant" gasoline prices, smart Americans are doing some simple research and math to understand the true situation. Gasoline prices are high -- this fact is understood by most without the research or math -- but, looking at history, they could be higher. Look at the Department of Energy statistics. Real gasoline prices, adjusted for inflation, consistently stayed above that average of $2.05 per gallon until the mid-1950s, when they only averaged a few cents below $2 per gallon. They jumped back up to record highs in the late 1970s. By 1980, the nominal cost per gallon was about $1.10, which has a real price of about $2.75 after adjustment, or roughly 25 percent more than gasoline's 85-year median price. Citizens should realize that despite these "exorbitant" prices, the cost is still less than what it should be when adjusted for inflation.
To liberals, however, prices are not only still outlandishly high, but the supplies of oil are outlandishly low. They say that "oil production is about to peak." Is there truth to this? Possibly. Yet, true or not, it is the Republicans in office who seem to be trying to alleviate this problem, whether current, potential or nonexistent.
The recent defeat of the Energy Policy bill is a good case in point. The bill, which would have provided for environmentally safe drilling in Alaska, increased energy efficiency and improved air quality, was killed by the filibustering of thick-headed Democratic senators and the support of Senator "Flip-flop" Kerry, who despite casting his vote to kill it, has ironically attempted to hurl a few darts at the president on the topic of fuel irresponsibility. Unfortunately for the senator, high talk about fuel prices coming from the man who voted to raise the tax on gasoline, or about the importance of hugging trees coming from the ringleader behind the death of the Energy Policy bill, is vaguely reminiscent of Queen Gertrude's ironic line from Hamlet, perhaps with a slight alteration: "Methinks the senator doth protest too much."
America's consumption of gasoline is often rumored to be at "dangerously high" levels. It is true that consumption is high, but the only thing dangerous is that the fuel cannot be refined as quickly as it is demanded, which could potentially create a shortage. Simple reason tells one that to have a product available, it must exist in greater quantities than it is used. For gasoline, this means refining the oil. But this creates a problem: America built its last refinery almost 30 years ago and, according to former Delaware Gov. Pete du Pont, this is the true problem that needs solving. He cites gasoline regulations as the creator of this predicament -- regulations passed by the Democrat-controlled 101st Congress and supported by leading men such as Kerry.
But liberals have regulation all wrong. Regulations should make things such as car emissions cleaner, not allow the amount of available gasoline dwindle. Interestingly, the years of the Bush administration have seen some of the cleanest air ever. There are fewer pollutants in the air now than ever before. According to the Environmental Protection Agency, the toxic or hazardous lead emissions from the use of gasoline in cars, factories and other motors have almost vanished; both carbon monoxide and sulfur dioxide are down by more than half and the ever-menacing "smog" is down by 18 percent. Technology has further decreased pollution through alternate fuel sources for automobiles.
Altogether, oil reserve estimates are up, gasoline prices are completely average over their 85-year history, technology has increased gas mileage and made alternate fuels a reality and pollution is down. The country's only problems seem to be that Democrats do not vote for legislation that would help and do vote along partisan lines for legislation that will ultimately hurt the environment.
Together, these facts seem to suggest that America and its most important fuel source are doing alright, and not in the state of "crisis" that is purported by the left.
Ironically enough, liberals have spent years espousing theories that higher gasoline prices are good because they mean greater conscientiousness about the environment and economy. But now that they are high, no one's celebrating. Why?
It's because the liberals realize that, using simple research and math, Americans have found an equation: A Democrat in office plus another Democrat in office equals more self-contradiction and hypocrisy. So, maybe instead of cutting back on gasoline consumption, Americans should focus on cutting back on the number of Democrats in office.
Anyone interested in this can start on the first Tuesday after the first Monday in November.
Just remember that regardless of the price of oil the Iraqis are pay $.05 a gallon because they've got the oil, while We the People are subsidizing that $.05 by paying over $2.00 per gallon. And the bloody inhuman oil companies are laughing themselves all the way to the bank.
Yes, a lot of important issues regarding oil are totally ignored!
Excellent points in this article. Of course gas prices are higher and they should be. Prices of all goods and services tend to go up each year and I think it is called inflation. The best advice is that we should consider being exposed to having some oil stocks in our portfolios. They tend to have a high dividend yield and I guess they could be considered to be a defensive stock in case the economy goes thru some rough spots due to higher interest rates. If liberals are so concerned go by a new Ford Hybrid Escape or even the Toyota Prius.
$.05 a gallon ?? Is that sarcasm or the truth. Shocked the heck out of me. I could understand it being cheaper over there maybe like $1.50..
Read it last week in (my local paper) an article. Then read it in a summary of the week's (Saturday's issue) highlights most notable quotes for the week. Someone may have posted in on FR but I don't recall seeing it. But it definitely said the Iraqis are paying $.05 a gallon and being subsidized by the US consumers who are paying over $2.00 per gallon. It's definitely something sticks out in my mind everytime I go to a gas pump.
The US has oil also, but the bloody liberals won't let us drill it! Liberals would rather have us subsidize the VERY BLOODY Middle East.
While political drama queens are busy whining about "exorbitant" gasoline prices, smart Americans are doing some simple research and math to understand the true situation. Gasoline prices are high -- this fact is understood by most without the research or math -- but, looking at history, they could be higher. Look at the Department of Energy statistics. Real gasoline prices, adjusted for inflation, consistently stayed above that average of $2.05 per gallon until the mid-1950s, when they only averaged a few cents below $2 per gallon. They jumped back up to record highs in the late 1970s. By 1980, the nominal cost per gallon was about $1.10, which has a real price of about $2.75 after adjustment, or roughly 25 percent more than gasoline's 85-year median price. Citizens should realize that despite these "exorbitant" prices, the cost is still less than what it should be when adjusted for inflation... The recent defeat of the Energy Policy bill... which would have provided for environmentally safe drilling in Alaska, increased energy efficiency and improved air quality, was killed by the filibustering of thick-headed Democratic senators and the support of Senator "Flip-flop" Kerry, who despite casting his vote to kill it, has ironically attempted to hurl a few darts at the president on the topic of fuel irresponsibility.IOW, the price of gasoline is lower (but in the ballpark) of what it should be, adjusted for inflation. There's nothing in the article about the price of gasoline being too high.
George W. Bush will be reelected by a margin of at least ten per cent
George W. Bush will be reelected by a margin of at least ten per cent
Thank you. I tried searching my local paper and nothing came up. You did better with a google search (simplicity in its finest). Gotta remember that next time.
There is good reason the Iraqis are buying gas at $0.05 a gallon. THEY HAVE FOR MANY YEARS!
Saddam's government was socialist. The government (Saddam & crew) owned the oil. The oil production and refining belonged to the government, when not in a hot war the fuel went to the public at the cost of transporting. The only people that owned cars were Ba'ayth party members and those that were at least in good standing with them.
Gasoline has been at 5 cents a gallon in Iraq as long as most people there can remember. You would have riots if you raised it to $1.50!
After June 30th it is the Iraqi government's problem anyway. They will be paying for it.
I would have hoped the reading comprehension and information absorption rate was much higher at this site!
"US isn't subsidizing Iraqi gasoline prices -- the oil is produced there"
Beg to differ. You haven't read the other postings have you?
Gas prices rose fast and furious--that's NOT inflation. That's gouging. Also, see some of the other posts about current info concerning US subsidizing Iraqis $.05 per gallon gasoline cost.
There is good reason the Iraqis are buying gas at $0.05 a gallon. THEY HAVE FOR MANY YEARS! ...Gasoline has been at 5 cents a gallon in Iraq as long as most people there can remember.Thank you, well said!
George W. Bush will be reelected by a margin of at least ten per cent
Yeah,but what about obscene profits and salaries for big oil cos?
Understood. However, knowing that you've been gouged doesn't make the situation any less tolerable. Especially when you have people trying to cram many ideas down your throat for quite some time to explain an intolerable situation, i.e., short of refineries and not building more, pipeline explosions, inflation, consider yourself fortunate that you can pay the price, poor Iraqis, poor oil companies, laws of supply and demand, and the list keeps getting longer.
Our military got hooked into supplying fuel to Iraq.
Remember the Baghdad refinery burning as our troops entered the city? All the Iraqi refineries were damage by sabotage. They have been since also.
If some of the large refining equipment is damage, it can take up to two years to replace. Atmospheric Crude Towers, Vacuum Columns and Catalytic Cracking Reactors/Regenerators are field-erected vessels. They have sub-assembles fabricated elsewhere and are assembled in place. The field assembly alone can take 9 months to a year.
Haliburton is working as fast as possible to get these refineries back into full operation. Until that happens, we, the USA are supplying the fuel…
Who is the biggest profiteer in oil?
The largest percentage of PROFIT goes to your friendly GOVERNMENT! The last figure I can remember is 68 cents a gallon and I think that was a national average.
When you see the pump price go up the day after an oil price increase, that is the local station owner not the oil company.
Record profits to a refinery are based on as little as 1/10 cents a gallon. The refining margins are very low because of the very high volumn they do. When you are refining 500,000 - 42 gallon barrels a day, 1/2 cents is a HUGE increase...
The government, the gas station owners, the wholesale distributors and the oil producers (OPEC) are the ones making the big profits right now.
would have hoped the reading comprehension and information absorption rate was much higher at this site!
Well I am sorry I must have missed a prior discussion on this topic.
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