Debase your currency and commodity prices increase. The market knows.
Posted on 03/28/2012 2:38:26 PM PDT by 1010RD
It's the political cure-all for high gas prices: Drill here, drill now. But more U.S. drilling has not changed how deeply the gas pump drills into your wallet, math and history show.
A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.
If more domestic oil drilling worked as politicians say, you'd now be paying about $2 a gallon for gasoline. Instead, you're paying the highest prices ever for March.
Political rhetoric about the blame over gas prices and the power to change them - whether Republican claims now or Democrats' charges four years ago - is not supported by cold, hard figures. And that's especially true about oil drilling in the U.S. More oil production in the United States does not mean consistently lower prices at the pump. [more at the site]
(Excerpt) Read more at minnesota.publicradio.org ...
Try a search on Nixon and the gold standard. A lot of the price appreciation is dollar inflation.
Public Radio always speaks the truth (/S)
With everything Obama has done to decrease the production of oil on federal lands and in the Gulf and off both coasts, the overall market does not see any future increase in production. The current drilling and production is in spite of Obama’s efforts not because of. Prices dropped when President Bush cut restrictions and encouraged drilling, because that meant more future production. And today we have the continued decline of the dollar in purchasing power, Thus the less value of the dollar, the higher prices go on the international market.
When Bush and running mate Dick Cheney campaigned in 2000, they argued that as oil executives they could get oil prices down, with Bush saying, "I would work with our friends in OPEC to convince them to open up the spigot, to increase the supply."Note the two sneaky things the writers did:
Yet it was during the last few months of Bush's term in 2008 that gas prices hit their highest: $4.27 when adjusted for inflation.
Every barrel produced here is a barrel not bought from abroad. Its a hundred dollar bill that is spent here instead of deposited into some other country’s treasury. Its an American employed instead of some other country’s workers.
Oil producers buy cars and houses and spend money at the mall, putting everyone else to work. They can do it here, or they can do it in the Persian Gulf. The oil companies make their money either way, drilling here, or drilling over there. Do you want your friends and family to go back to work, or do you want to see millions of unemployed people with no hope of finding a decent job.
Energy is, along with food, water and air, the basic component to national wealth. To refuse to produce energy is to voluntarily choose poverty.
When the price is going up and is expected to keep rising, there’s a lot of drilling.
Then the price comes down as a consequence of greater supply, and drilling stops.
But thanks anyway, Minnesota Public [sic] Radio.
Thanks 1010RD.
And, it’ll be on FactCheck.org, MediaMatters, Kos, Huffin’, Snopes, Wikipedia, the MSM, and every other partisan shill site in no time.
NPR just ask DeBeers Company they only release enough Diamonds to keep prices where they want.
“Any comments?”
Questions:
What is the price of gas in saudi arabia? According to this arguement, it should be the same as in the US.
Why then does every president go begging for saudi arabia to pump more oil every time prices rise?
Debase your currency and commodity prices increase. The market knows.
Not if the price is set by government dictat. Which it is.
You can get away with that if you have a tiny domestic market and a large internation market, and a king.
Why then does every president go begging for saudi arabia to pump more oil every time prices rise?
Ticks me off. Instead of aggressively producing our own sources of oil and gas, they go hat in hand to the Saudis. Because thats easier than finding the political will to make the dramatic production increases we need to make.
In 1932, the one ounce of gold would get you 16 BBL of oil. In 2012, that is still true. The COST of producing oil hasn’t changed in all that time, DESPITE the EPA, ethanol regs, egregious fines, etc. All of that is offset by amortizing equipment and doing the PMS on it all.
Monetary policy, and only monetary policy, is what is ‘driving up the price’ of gas.
If the libs at MPR had any guts, what they’d say was, ‘every dollar buys less gas, but the cost of producing that gas hasn’t really changed in 80 years’.
Now, if we DID drill, and we could stop buying crude from overseas suppliers, and if we could pull our excess refining capacity into the gas export market, what would that do for unemployment?
That’s the correct economic question.
The simple truth is this - Unless Jesus is taking over the Federal Reserve, the price of gas is going to keep going up. Blame QE1, QE2, TARP, Fannie/Freddie/Sallie bailouts, etc. Thats too many dollars chasing the same amount of stuff.
If I’m selling lemonade for $1/glass, and you go out and print more $1 bills without changing the amount of lemonade being made, you can’t expect to buy the lemonade at the same price you bought it yesterday, especially when the sugar I bought yesterday for $0.20 per unit just went to $1.00/unit.
These liberals should compare the cost of oil against a known in lieu of the falling American dollar. Forbes had an article recently indexing oil price to gold price. At current pricing levels, we are actually getting a bargain compared to the 42 year average.
This article is retarded. More oil will by definition make prices drop. Environmentalists can stick it.
IIRC, its powers were greatly enhanced to control production from the Black Giant, the East Texas Oilfield.
http://www.tshaonline.org/handbook/online/articles/mdr01
http://en.wikipedia.org/wiki/East_Texas_Oil_Field
This is propaganda from AP and MPR.
Yes. Oil is a globally priced commodity. We can influence pricing but if someone ignores the majority of the items influencing the global supply and demand curves, it is little surprise they don’t recognize the results.
This is what happens when journalism majors get their hands on statistics. The statement is false: on page 13 of the analysis it is found that gas prices cause (more precisely, "Granger cause" - that is, are correlated with in a specific way) refinery output.
Further, the statement "refinery output does not Granger cause gas prices" assumes (apparently) a 95% confidence level - perfectly standard, but not carved in stone. Page 14 shows that the observed relationship between earlier output and later prices had only a 14% probability of occurring by random chance; considering all the ignored variables adding noise to the analysis, that's pretty good grounds to say output does have a causal influence on prices.
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