Any comments?
Brought to you by”
“Minnesota Public Radio”
Fair and balanced, no doubt.
The laws of supply and demand do not obtain where King Obama is involved.
Wait. Stop. Hold it right there. If it's by the Associated Press and Minnesota Public Radio is broadcasting it, the needle on my suspicion meter just flopped all the way over to the right.
Considering the source, I'm going to wait for someone to look into the matter without Marxist rose-tinted glasses.
Supply and demand works every time it is tried.
http://www.easttexasoilmuseum.com/Pages/morehistory.html
Production of East Texas’ newest commodity increased rapidly from seven wells every other week, to seven wells daily, to more than 100 wells put into production each day. The first oil discovered sold for $1.10 a barrel, but prices plummeted to 15 cents as supply flooded the market and drilling activity spread to Upshur, Smith and Cherokee counties.
Production swelled to more than 1,000,000 barrels daily and in August 1931, National Guardsmen were ordered into the area to keep peace between roughnecks, lease hounds, oil speculators and camp followers. These actions finally culminated in legislative action – a market-demand law, confiscation law, truck-tender law, the refinery control and felony bill, and the Connolly Hot Oil Act of 1935, which restored order and stability.
And yet we are told we may have to wait up to 20 YRS... give or take...for wind and solar power to kick in.
How much oil had the drilling produced, that is the issue, not the amount of drilling done per se.
The devaluation of the dollar.
About 75% of the cost of gasoline is the cost of the oil necessary to produce it. Oil is traded in U.S. dollars. The Obama/Bernanke printing press has been working overtime not only printing money, but devaluing the dollar for quite awhile now. The cost of oil goes up as the value of the dollar goes down.
Same thing with all your groceries. The devalued dollar is a participant in that crime as well.
It’s about drilling here rather than importing. It means jobs...good jobs....and more income for the government who, if they were nice, could take off the Federal Tax at the pump. So could the states...We can lower prices here....if we stop importing.
By that same logic , no drilling in the US would leave the prices the same.
Of course china and India were not competing for oil for many of those 36 years, and having drilling here means the jobs, economy and taxes stay here.
http://en.wikipedia.org/wiki/Connally_Hot_Oil_Act_of_1935
The Connally Hot Oil Act of 1935
Ostensibly enacted to protect the industry from “contraband oil”, it was mainly a way of cartelizing the industry to stabilize falling prices.
If it were as simplistic as the author implies an 8th grade graduate or a Democrat could be an respected analyst who's opinions are taken seriously.
The law of supply and demand is not irrelevant. We are not living in an alternate universe.
The simple answer is, all other things being equal, more supply will cause prices to be lower and less supply will cause prices to be higher.
HERE WE HAVE IT: Christopher Knittel, a professor of energy economics at MIT says “American oil production is about 11 percent of the world’s output, so even if the U.S. were to increase its oil production by 50 percent - that is more than drilling in the Arctic, increased public-lands and offshore drilling, and the Canadian pipeline would provide - it would at most cut gas prices by 10 percent.”
ACCORDING TO THIS BRAINIAC’s logic the US could cut its production BY HALF and gas prices would only rise 10%. AND IF THE US just packed it in and stopped 100% of its production, then the price would only rise 20%. Gosh, it looks like Obama and Chu are right and we should start growing algae in our our swimming pools ASAP.
This is the biggest load of crapola I've seen since the Trayvon Martin non-story broke. What these folks conveniently ignore is that the enviroweenies have virtually prevented ALL refinery production since the 70s and they celebrate everytime an American refinery closes or has to shut down for repairs or upgrades. The more oil we can produce here and the more refineries we have to produce the gas, the lower the price. It's a simple economic formula that the left tries to obfuscate at every opportunity.
When we are all back to commuting by horse and buggy, the very same people who hate oil, gas and automobiles will be screaming the loudest about not being able to get oil, buy gas or drive their automobile!!
I'm REALLY beginning to hate leftists!!
NPR would be glad for all the extra domestic oil producing capacity when the lid blows off the Persian Gulf as it is sure to do when Israel goes after Iran. Or maybe not, since NPR affiliates are uniformly anti-American, anti-capitalist, anti-western, anti-fossil fuels & anti-Israeli.
Since when have we been actively drilling domestically?
We stifled growth of that decades ago and it has been capped by Washington since.
These people say whatever they want and they actually believe their lies themselves after a while, I'm convinced.
Trillions of dollars spending did not raise employment or create enough energy to run the country.
Seems that no one remembers that before the mid 70’s oil embargo (about 36 years ago) there were GAS PRICE WARS everywhere.
Gas was .28 to .30 CENTS a gallon. The oil companies quit using our oil for the “light, sweet” crude of the middle east, which, IMHO, allowed the allowed the Arabs not only to embargo and rise prices, but to cause American money to be sent overseas.
Our next big SNAFU was NAFTA. Another government mistake that still sticks in my craw.
The cØmmunists have f'd up the lot.
When it's $5/gal and up, the maggots may well find themselves increasingly 'unwelcome' when out amongst the serfs.