Gasoline demand is not "way down". We dropped a little from the peak back in 2006~7, but it has started rising slightly of late.
Posted on 01/05/2015 10:39:10 AM PST by CedarDave
Gasoline prices are on the verge of crashing down to below $2 a gallon nationally. The price of oil may dip below $50 a barrel.
Even with renewed demand from a global economic resurgence, energy prices continue to fall. The U.S. has suddenly become the world’s largest combined producer of oil and natural gas.
That fact – along with a desire to weaken hostile Iran and Russia – has prompted the oil-rich Gulf sheikdoms to keep pumping oil even as the price falls. In their game of petro-chicken, the desperate sheiks hope that either their poorer enemies will run out of cash, or that fracking in the U.S. will become unprofitable and cease.
Under President Obama, gasoline prices had soared. When he entered office in January 2009, gas prices averaged around $1.60 per gallon. Four years later, by spring of 2013, gas prices had climbed beyond $3.50 a gallon
The Obama administration never much worried about high energy costs. During the 2008 campaign, Obama promised that, “Under my plan … electricity rates would necessarily skyrocket.” Shutting down coal plants and using higher-priced but cleaner natural gas would pave the way for even pricier mandated wind and solar generation.
~~ snip ~~
Almost everything Obama tried for six years in an effort to rev the economy – from near-zero interest rates and $1 trillion annual budget deficits to Obamacare and vast increases in entitlements – has failed. His foreign-policy stances of resets and leading from behind led to chaos and emboldened enemies.
What Obama once ridiculed is now saving him from himself – after he had championed policies that nearly destroyed him.
The Greeks had a word for it: irony.
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But..but...Did Obama lie to us when he said we can’t drill our way out of highest gas prices?
Obama was not responsible for the near-zero rates. That was the Federal Reserve which was responding to the high unemployment.
Federal trade policy more than anything is responsible for the high unemployment. Though Obama’s anti-energy policies haven’t helped any.
What gets me is that the bastard (and I use the term correctly) is taking credit for the falling gas prices.
Just about every time Obama opens his mouth he lies.
Yes he did. However if oil is a finite resource, then we need to consider carefully whether to drill our own or purchase others.
When ours runs out, we will be dependent on others. It might be a good strategy to leave ours in the ground and buy others, as long as we aren't liquidating the country to do it.
And while it looks like we are liquidating our country, trade policy and low import tariffs has more to do with that than oil purchases.
If oil is not finite, (meaning the earth continually produces it) then we are stupid for not drilling our own.
I still think it’s the reduction in people who can afford to travel that has brought the gas demand way down.
So as the U.S.A. unravels, other commodities may come down. This is not good for our future.
I grew up in North Dakota and I remember all of the “experts” saying the Williston Basin would be out of oil in by the mid 1970’s. But new discovery and new methods of drilling such as fracking have once again proven the “experts” wrong.
The stone age didn’t end because we ran out of stones.
Funding our enemies until the high price of oil drives a new technology for transportation fuel is foolish.
Straw Man argument. 0bama has not wanted to ‘improve’ our lives in any way, shape or form since Day 1.
Good read, though... :)
This is great article. I read it earlier today. Capitalism saved Obama and he’s too dumb to give credit where it is due, as are his supporters.
“I still think it’s the reduction in people who can afford to travel that has brought the gas demand way down.”
Yep. No JOB to go to every day will do that! :(
Like it or not, the relatively cheap transportation that oil makes possible has made the standards of modern civilized living possible.
Energy not being able to be destroyed or created, exactly what other miracle do you want to run the trucks and trains of tomorrow on?
Well, it’s a balance. We may not have run out of stones, but we could run out of oil.
What Republicans should do is claim credit for this due to leveraging Keystone. And with Keystone they should look at leveraging gas, oil fields and coal.
Tell Obama and the environmentalists to go pound tar sand.
The point is, just like the stone, bronze, iron, etc age, it won’t be a lack of supply that drives the change to the next item past oil.
It will be the next economic choice and technology will drive it.
We will be better served funding that technology development rather than funding our enemies while hoping our oil is still worth more later down the road.
Gasoline demand is not "way down". We dropped a little from the peak back in 2006~7, but it has started rising slightly of late.
Oh I agree that we should fund technology development. Not the mass production of unviable technologies, but the research to explore new tech and try to make technologies feasible.
But it could well be a lack of supply that drives the next technology. After all it’s a lack of supply that will drive the price up and enable the next technology to be feasible.
It would be better to make that transition sooner than later, because the supply disruptions and associated economic pain can be really severe.
And here in Mexifornia, Mad Jerry Geezer is ADDING a carbon tax to gas, because it’s evil and making it warmer, doncha know?
So while the rest of the country is luxuriating in cheap gas, Clownifornia will be shoveling out more cash to the Deranged Baby Boomer known as Moonbeam.
Okay...if oil is a finite resource, then carbon is a finite resource. Let’s document that!
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