Pelosi's Cartoonish Comments on Gas Prices

Townhall.com ^ | February 26, 2012 | Chris Edwards

[Kaslin]

The congresswomen’s comments are so cartoonish, I don’t even have to comment on them. But I thought Cato readers would like to know what the minority leader of the U.S. House is saying about rising gas prices. From a Nancy Pelosi press release today:

Independent reports confirm that speculators are driving up the cost of oil, hurting consumers and potentially damaging the economic recovery. Wall Street profiteering, not oil shortages, is the cause of the price spike.

We need to take strong action to protect consumers from this speculation. Unfortunately, Republicans have chosen to protect the interests of Wall Street speculators and oil companies instead of the interests of working Americans by obstructing the agencies with the responsibility of enforcing consumer protection laws.

We call on the Republican leadership to act on behalf of American consumers and join our efforts to crack down on speculators who care more about their profits than the price at the pump even if these spikes harm the American consumer and our economy.

For a rational discussion on energy policy, see Downsizing the Department of Energy.

Department of Energy

The Department of Energy oversees nuclear weapons sites and subsidizes conventional and alternative fuels. The department has a history of fiscal and environmental mismanagement. Further, misguided energy regulations have caused large loses to consumers and the economy over the decades.

The department will spend about $45 billion in 2011, or about $380 for every U.S. household. It employs about 17,000 workers directly and oversees 100,000 contract workers at 21 national laboratories and other facilities across the nation. The department operates 37 different subsidy programs.

---

Recent Blog Posts on Energy

• Franken to Chu: Doggone It, Like My State’s Company
• Obama's Proposed Cuts and the Scope of Government

• Solyndra: A Political-Energy Company

Timeline of Government Growth

• See this timeline for key events in the department’s growth.

Reading Room

• Here are background studies that examine the department's activities.

Cato Experts

• Jerry Taylor, Senior Fellow
• Peter Van Doren, Editor, Regulation
• Chris Edwards, Director, Tax Policy Studies
• Tad DeHaven, Budget Policy Analyst

Spending Cuts Summary

• Here are proposed spending cuts to the department to save taxpayers about $18 billion annually.

Downsize This!

• Energy Subsidies. The department has spent billions of dollars over the decades on dead-end schemes and dubious projects that have often had large cost overruns.
• A Brief History of Energy Regulations. Most federal intrusions into energy markets have been serious mistakes. They have destabilized markets, reduced domestic output, and decreased consumer welfare.

• Energy Intervention Today. The current arguments for energy intervention and energy subsidies fall short.

"All Americans are involved in making energy policy. When individual choices are made with a maximum of personal understanding and a minimum of government restraints, the result is the most appropriate energy policy."

- Reagan administration energy plan, 1981

[blackdog]

Pelosi's Cartoonish Comments

There. Fixed it.

[muir_redwoods]

Pelosie is wrong; it’s not speculators who are driving up the cost of oil, it’s evil spirits or gremlins. I know this is so because my cat told me so.

Leftist generally and Bill O’Reilly in particular lack the brains to understand the vital role played by speculators in all realms of a working economy. They are the mechanism by which demand and supply can anticipate and inform each other.

[Former Proud Canadian]

It is easier for people to believe that "speculators and oil traders" are responsible for high gas prices than to figure out who the real culprits are.

Who defines the regulatory environment for gas and oil production and distribution? Hint: government.

Which country has the greatest energy resources on earth? Hint: It is in North America and it IS NOT Canada or Mexico.

Which country's regulatory environment (read government, see above) is not allowing private companies to search for, produce, import, refine and sell energy products, specifically oil, at will? No hints. If you haven't gotten it by now, you don't belong on Free Republic.

[smith288]

“The price of oil is at the doorstep — 4 dollars plus per gallon for oil, is attributed to two oil men in the White House,” Pelosi said in a CNN interview on July 17th, 2008.

[AD from SpringBay]

Pelosi sees an opportunity to expand government. I am sure she is not the only one in Washington to see this. National Socialism takes another step forward each day.

[From The Deer Stand]

It has gotten to a point where anything Pelosi says about anything is disregarded.

[Venturer]

If there is money in speculation I would bet Pelosi has a monetary interest in it as well.

It is funny to hear a rich woman like Pelosi knocking someone else for being rich.

[Savage Beast]

Nancy Pelosi is always cartoonish. It’s hard to imagine what people are like who would vote for someone like that.

[bigbob]

Forget Pelosi, she’s not the issue. DOE IS.

That’s a good list of cuts and restructuring. As you doubtless know, most of what DOE does is “spread the wealth around”, providing grants for R&D and all kinds of things to cronies and universities. Having worked on such projects I’ve seen firsthand what the ratio of waste vs. actual productivity is. Virtually NONE of this work would have ever been done had it been necessary for companies to write the check themselves to pay for it, and virtually NONE of it ever led to commercial success.

But ALL of it created more dependency on the DoE for continuing the handouts. You may as well call it “food stamps for PhDs”...

[trebb]

Leftist generally and Bill O’Reilly in particular lack the brains to understand the vital role played by speculators in all realms of a working economy. They are the mechanism by which demand and supply can anticipate and inform each other.

Yep - the more copious and stable the supply, the less effect the "evil" speculators have as they "work hand-in-hand with the evil oil companies to screw us".

[VRW Conspirator]

Forget Pelosi, she’s not the issue. DOE IS.

Whatever noble intents there were for creating the DOE, these have been overshadowed by corruption to the point of this Department being unredeemable. And, to think that Pelosi was in such a powerful position as Speaker of the House and two heartbeats away from the Presidency!

[ETL]

Come on, Nancy, don't you think you're "stretching" the truth a bit?

[bray]

You are a speculator every time you fill your tank in anticipation of higher prices tomorrow. They vilify anybody in the distribution system as a speculator when in fact no speculator is big enough to move the market, the market moves the market.

Pray for America

[Kaslin]

I believe speculators are responsible in some way driving up the price of oil, but not as much as Bill O'Reilly claims.

You are correct the real culprit is the government with their regulations, especially on the the different blends of as. I remember when I bought my car in 2006 it took quite a while before the gauge went down to the next. Now it only takes about 3 trips, of about 4 miles I don't drive my car much. Everyone knows that we have the greatest energy source but the environmental idiots and the rats want to keep us dependent on foreign oil.

I noticed you have attacked several Freepers and say they don't belong on FR. I got some news for you. My signup date shows Apr 26, 2000, but my original signup date was April 18, 1998 years earlier. It was exactly on the day of the big Rally in DC. I had unfortunately not saved my password. So when I changed my Internet provider my password could not be retrieved because my previous email address did not work anymore. I chose a different name, which btw are the last 3 initials of my maiden name and the last 3 initials of my last name.

Your signup date was 04/04/1999

[duckworth]

you write: It’s hard to imagine what people are like who would vote for someone like that (pelosi).

Dude, ever been to San Francisco? http://www.flickr.com/photos/agrinberg/3674783086/

[Beowulf9]

That’s ironic, considering the Democrats told us there were gas shortages in the 70s. Remember? The world’s oil supply was running out...

I thought that was why we waited on line to fill the tank for a half hour.

[Tex-Con-Man]

[Popman]

Poor Queen Nancy....since losing the house gavel, she has gone over the deep end....of course she was always on the edge of the cliff before...but the rush of power keep her on the razor edge of sane

As of late she has said some really bizarre things...

Me thinks she needs to be institutionalized...

[tcrlaf]

“I believe speculators are responsible in some way driving up the price of oil”

Goldman-Sach’s (Owners Of Obama) was calling for $148 Oil back in December, by June.

Speculators have NOTHING to do with gas prices, this time. It’s the debasement of the currency, especially against Oil-based currencies like the Canadian Dollar, thanks to Obama’s ridiculous policies.

$1 Canadian now equals $1.001 US Dollars.
In 2008, it was around $.79 US Dollars.
We get around 24% of ALL of our oil from Canada.

But hey, as long as the Ponzi Scheme lasts past the Novenber election, it’s all good. Right? It’s not like the Democrats are using THEIR money to buy votes with, after all.

[autumnraine]

What good is letting every oil company drill where and when they want if they are only going to sell it to other countries? North Dakota has been producing a lot of oil, but we are shipping it elsewhere!

So we let them tap our oil for what? China to buy it up?

[Anima Mundi]

Hard to imagine what people are like who would vote for Pelosi? Watch the movie “Serial” starring Martin Mull and you will see. It is a funny and accurate picture of the type, including marriage in a meadow talking about “I-ness” “You-ness”, “Us-ness” and “We-ness”. The movie is many years old, but holds up surprisingly well.

[Former Proud Canadian]

I did not attack Freepers. I simply asked three questions and gave the answers. Just trying to point out how simple the math is.

[Former Proud Canadian]

Additionally. Speculators are buying oil contracts because they believe the spot price will go up. They think the spot price will go up because Obama is doing everything he can to drive the price up. Speculators are behaving rationally. Do you blame them?

Some believe the increase in oil prices is more reflective of the fall in the value of the dollar than anything else. Bernacke has been printing dollars for years, the supply of dollars has increased dramatically. The supply of oil has remained basically static. More dollars chasing the same amount of oil is a prescription for an increase in the price of oil. It is Obama's stated policy to drive up the cost of energy. His actions reflect that policy. Don't blame "speculators" for acting on these facts. The US government could easily get energy prices down tomorrow. To wit:

1. Ok the Keystone XL project.

2. Open the Gulf for drilling and production.

3. Open public lands in CONUS and Alaska for exploration and production.

4. End "boutique blending" of gasoline.

These four steps alone would kill speculation and drive the price down. "Speculators" would liquidate their long positions and might even start selling contracts short, which would accelerate the downward pressure on spot prices. Speculators react to market conditions, they don't create them.

[Henry Hnyellar]

And we never hear anyone talking about speculators when the price of oil goes down. Why is this?

[Former Proud Canadian]

Not sure where to start, but here it goes.

Check out this map: http://www.gasbuddy.com/gb_gastemperaturemap.aspx

You will note that the lowest prices are occurring in the upper midwest and the western states. North Dakota production is actually not being shipped elsewhere. It, along with Canadian oil, is helping to create a glut in the midwest and the west, which are enjoying lower prices as a result.

Even though politicians will try to ignore them, the laws of supply and demand are immutable and undeniable. Oil lifted out of the ground in the US will be sold to the highest bidder. If that process means that oil lifted in Texas and refined in Houston is sold and exported as gasoline to a foreign buyer what is wrong with that? It actually earns foreign exchange for the US which can then use that money to buy oil or cheap Chinese imports.

I think, however, that you are way off base on your premise. The US net imports of petroleum products is around 9 million barrels/day. In other words, if you produced another 9 million b/d your net imports would be zero. Here is the reference: http://www.eia.gov/energy_in_brief/foreign_oil_dependence.cfm

The oil market, unlike government, operates on a rational basis.

[Former Proud Canadian]

Lots of reasons, but I’m going to assume you are asking a rhetorical question and not expecting a response.

[kcvl]

EPA pulls permits for two Texas City refineries

Published July 1, 2010

TEXAS CITY The Environmental Protection Agency on Wednesday rejected the air quality permits for 122 industrial facilities in Texas, including the BP and Valero refineries in Texas City.

The pulling of the flexible air permits that are issued by the state under EPA authority means the facilities do not have legal operating permits.

EPA Regional Administrator Al Armendariz said none of the facilities will be required to shut down but all will be required to obtain new permits under stricter guidelines.

Earlier this year, the agency pulled more than 200 permits, citing what it said were deficiencies in the Texas Commission on Environmental Quality flexible air permitting process.

http://galvestondailynews.com/story/160182

[chiefqc]

All that plastic used to shore up her old ugly face has seeped into her brain.

[chiefqc]

All that plastic used to shore up her old ugly face has seeped into her brain.

[Polyxene]

“I believe speculators are responsible in some way driving up the price of oil”

And yet — when Bush was President, Pelosi and the DemocRATS said the high gas prices were ALL HIS FAULT!

[ProtectOurFreedom]

She is a total economic ignoramus spouting populist drivel. Short excerpt from a good article below...

Oil Speculators: Bad or Good

By Robert Murphy
August 4, 2008
Library of Economics and Liberty
http://www.econlib.org/library/Columns/y2008/Murphyspeculators.html

...First, all speculators perform the vital service of speeding price adjustments and reducing volatility. After all, a speculator buys low and sells high (or short sells high and buys back low). Over the entire cycle of the commodity's price, speculation actually reduces volatility because buying (when the price is low) pushes up prices, and selling (when high) pushes them down. Thus, the true speculator—i.e., one who is not connected with the commodity and is truly just betting on the price move—profits to the extent that he accurately anticipates the future and is penalized in exact proportion to how poorly he forecasts. In an oil market plagued by a possible Israeli or U.S. airstrike on Iran, saboteurs in Iraq and Nigeria, sputtering economies that may restrict demand, and political wrangling over offshore drilling, speculators ensure that expert knowledge in all of these fields gets reflected in the market prices very quickly.

[kcvl]

A day before Christmas Eve, the Environmental Protection Agency quietly announced plans to implement new regulations that would have the same impact as the job-killing cap-and-trade policy that Congress rejected last year. Implementation of these regulations would have devastating economic consequences and could jeopardize American jobs as our nation faces 9.4 percent unemployment. This is the wrong policy at the worst time, and I plan to fight against overbearing regulations that slow our economic recovery.

Texas would suffer a double blow. Not only is our state the top consumer of domestic energy, we are also the leading producer. Texas remains the nation’s largest producer of oil and gas and refining operations, accounting for more than one-fourth of total U.S. refining capacity. The energy sector of Texas employs nearly 400,000 people in high-paying jobs. This means that Texas’ energy work force would be more susceptible to job loss and financial hardship brought on by the new regulations.

http://www.chron.com/opinion/outlook/article/EPA-regulations-on-refineries-will-kill-jobs-in-1691128.php

[Former Proud Canadian]

Here is an example of your government's insane "energy policy" and how it drives up prices. No speculators involved here:

http://www.freerepublic.com/focus/f-news/2851586/posts

[Savage Beast]

Uh...yeah...

I used to live there.

I got the hell outta that horrible place--sterilized my clothes--scrubbed myself for a coupla months--and did my best to forget the whole squalid garbage dump. As you can see, I've done a pretty good job.

BTW, a childhood friend who has lived in Europe since college, emailed me that his son and the son's girlfried, both Europeans, had driven up the California Coast to San Francisco.

I asked him if they liked San Francisco.

I replied: "Hell no!"

[Savage Beast]

Uh...yeah...

I used to live there.

I got the hell outta that horrible place--sterilized my clothes--scrubbed myself for a coupla months--and did my best to forget the whole squalid garbage dump. As you can see, I've done a pretty good job.

BTW, a childhood friend who has lived in Europe since college, emailed me that his son and the son's girlfried, both Europeans, had driven up the California Coast to San Francisco.

I asked him if they liked San Francisco.

He replied: "Hell no!"

[rdb3]

But ALL of it created more dependency on the DoE for continuing the handouts. You may as well call it “food stamps for PhDs”...

I love how you put that!

25 years ago, we had Ronald Reagan, Johnny Cash, and Bob Hope.
Today we have Obama, no cash, and no hope!

If you can't appreciate the pure beauty of the violin after hearing this, something's wrong with your ears.

Or you can get raw with these strings.

How about this gamechanger from America's Got Talent (which they SHOULD have won).

And finally, this, dedicated to the one and only rdb2, whose eyes are growing dim.

Either way, the violin is sweet yet LETHAL.

Do it!

[Waco]

How high will gas have to go before the gov’t goes to the natl’l petroleum reserve fo some relief? $10/gal. 30 bucks for a gal,one hundred bucks per gal.?

[autumnraine]

Yes, the midwest gets oil from Canada while we ship US oil elsewhere.

http://www.allgov.com/ViewNews/US_Oil_Exports_Reach_Record_Highs__Thats_Right__Exports_110905

According to the U.S. Department of Energy, American exports of crude oil and refined petroleum products are higher than they’ve ever been. In April of this year, oil companies sold nearly three million barrels overseas—which was double the amount sold four years earlier (April 2007).

[Former Proud Canadian]

I don't know where you are coming from. The US has net imports of 9 million b/d.

Are you suggesting that the oil companies are exporting oil that should go to domestic consumption thereby driving up the price?

[Constitutional Patriot]

Pelosi is a complete idiot as is anyone from that G-d forsaken city who supports here. Still waiting for that earthquake...

[autumnraine]

I am suggesting that the oil is on federal lands, OUR lands.

This is the equivalent of someone buying water rights on your personal property, while you are thirsting to death and they are selling it to the highest bidder while you are struggling to buy it somewhere else.

At some point wouldn’t you penalize them for not giving you at least first opportunity to purchase or suffer a penalty for selling to someone other than yourself.

I am NOT saying the government should own the oil, I am not saying the government should TELL the oil companies what to do with their oil. I am saying there is nothing wrong with an export tax.

[Former Proud Canadian]

Ok, so you want to tax crude oil exported from the US. Does this include products? Gasoline? Propane? Bunker oil? Diesel? Natural gas? Coal?

At what rate would you set the tax?

What is the purpose of taxing these exports?

Can you foresee any bad side effects?

[a fool in paradise]

Warren Buffett lost one billion dollars in 2008 speculating on oil. CNN anchors were saying $200-400 barrel prices were coming.

Barack is quite content with $5 a gallon gas.

[LtKerst]

Nancy Pelosi
“Speculators”....She is Lying.
Remember..”You Have to Pass the Bill before We get to see whats in it”....She should have been Imprisoned just for that Lie.
Then there is the absurd...”Unemployment checks are Stimulating the Economy”...Only a Moron Democrat would swallow that Crap.
and also Her comment that She didn’t know about the WaterBoarding....another Lie to the American People.
She must be distracted getting her Family and Friends
rich off the Treasure Island Ripoff.
and dont forget Her Resturants and Winery dont allow Unions.....

[ripley]

Her comments may be cartoonish, but they will be accepted by many in the electorate and she may very well be speaker once again.

IMHO

[Seaplaner]

You are precisely correct.

They are not stupid. They work (in well-organized unison) to scare us into letting them "solve" all problems (real or falsified) by confiscating freedom and property, and installing themselves as the benevolent protectors against the free-market boogiepersons.

.