Inflated issue (Rising Cost of Oil)

The Battalion (Texas A&M U.) ^ | 6/14/04 | Clint Rainey

[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.

[lilylangtree]

Don't forget the state's hand out. Here in the Pacific Northwest, the state charges $.28 on every gallon of gasoline. That was passed by our state demoncRAT-controlled House and Repub-controlled Senate and signed by our very demoncRAT governor, who prides himself as a first-generation Chinese American, in April 2003 via $.05 increase.

[El Laton Caliente]

I was a little harsh...

Having been in the refinery, chemical and power plant building business (Industrial Construction) since 1977 I find it sad that so few understand industry.

It amazes me how conservative capitalists will even react emotionally about gas prices without doing the research that would be normal to them on any other subject.

Like the article said, if you average gas prices the last 80 years and adjust for inflation they are 10 cents a gallon lower than average.

Historically, gasoline and petroleum products in general are price stable for long periods, up to ten years or more, and then rise rapidly and stabilize again.