DRUDGE: White House Studies $4 Gallon 'Nightmare' Scenario

Drudge Report ^ | Sun Mar 20 2005 | Matt Drudge

[West Coast Conservative]

**Exclusive**

President Bush's inner circle has become preoccupied with soaring gas prices and its toll on the economy, a well-placed White House source said over the weekend.

Bush has quitely asked for a review of any and all economic fallout on the nation if gas prices continuing racing up and over the psychological line of $3 a gallon, as they have in recent weeks in some locations, the source explains.

Bush's top economic advisers have conveyed to the president that a "nightmare" scenario of $4 a gallon is extremely unlikely in the short term.

"The seasonal run-up of gas prices has been tough this year, but like every year in the past two decades, we expect we will will see some easing," the source claims from Washington.

Developing...

[mac_truck]

Of course the best solution is to start drilling in Anwar.

While I don't disagree that exploration leading to increased proven reserves is important, ANWAR is years away from becoming a viable production source.

[HKTechBoy]

This isn't OPEC's FAULT!!!! OPEC likes it around $30~40 dollars, because people start talking about smaller cars, biking and Nuclear.

The US needs to think Big and to act brave, we have to get rid of Oil once and for all, wind and Nuclear. It's going to cost us in the short term, but it will strengthen us for the long term battles with the Euros & Chinese.

Cheap Oil is to the US, what Steroids are to baseball.

[Mygirlsmom]

Strip the friggin' taxes off and we immediately get about 40% relief.

That and getting rid of the boutique formulations and worthless EPA regulations. I expect we'll be looking at about $3.25 or more per gallon soon here in the Milwaukee area. We are required to use a special form of reformulated gas in spring and summer that NO ONE else has to use, which causes a supply problem and subsequent price jack every spring.

[balch3]

If the price stays high That is going to be a millstone around Jeb's neck if he does run in 2008.

[Mygirlsmom]

Despite what some would have you believe, not all taxes are bad. Gas taxes tend to be some of the most fair since there tends to be a correlation between fuel consumed and the amount of road wear and tear a vehicle using that fuel is responsible for. It's fair in that people are charged in proportion to the services they get from government.

Here in Wisconsin our gas taxes are outrageous and continue to climb every April due to an automatic annual increase. We apparently have more money in our road fund than we need at this point, so our governor is chomping at the bit to raid it to fund his massive social programs. Then, of course, when there aren't enough funds to fix the roads, they'll argue that raising taxes more is the only solution. Shampoo, rinse, repeat. (and we keep getting SOAKED!)

[Major_Risktaker]

Time to pump it up and ship it over!

Assessing Iraq’s Oil Potential

The latest estimates put Iraq’s potential reserves at around 150 to 200 billion barrels of oil and 106 trillion cubic feet of gas. These figures put Iraq in the forefront of oil-producing countries: Iraqi oil reserves are considered to be the second largest in the world, after Saudi Arabia’s.

[backhoe]

Sticker Shock-$3 a gallon gas? Some links
various FR links | 03-17-04 | The Heavy Equipment Guy
http://www.freerepublic.com/focus/f-news/1099933/posts

My Vest Pocket solution?

1- drill for gas & oil like crazy- onshore, offshore, and in Alaska 2- go nuclear for power 3- convert stationary plants to clean coal technology 4- slash taxes and regulations like crazy

[philman_36]

I keep posting these like minded articles and nobody ever seems to notice. Note the dates.
Istook Questions National Security Impact of Foreign Oil
Snip...For the first six months of 1998 an estimated 48,702 wells were idled or shut in, according to a recent survey of 23 oil producing states. As low prices continue, more and more marginal wells, that would be economical at $14.00 per barrel, are being capped because oil has been averaging $11.16 for too long to justify operating. Once an oil well is capped it can never be reopened and would most likely be uneconomical to re-drill. Thus, what was once an national asset is lost forever.
They must surely now be economical to operate at...what, $57.00 odd dollars a barrel now? The chickens are coming home to roost.

Our National Security Depends on Energy Security
We have squandered resources by allowing marginal wells in Oklahoma and other oil-producing states to be capped, rather than providing incentives to keep them pumping. Oklahoma produced just under 70 million barrels of oil per year in 2000, as compared to more than 112 million a decade ago.

[jaykay]

Im going to have to by a motorcycle, at least that will get about 60-65 mpg.

[BOBTHENAILER]

Dump the "regional botique" formulations and get more danged refineries built... PRONTO!!! That's about the extent of the stupid GovernMental/EnvironMental created problem!!!

Pretty simple, really.

[marty60]

Talk to the Dums and their partners in crime the enviros. Everything you listed has been stopped by these two groups.

[cpdiii]

It will take years but the answer is as follows.
1. Drill Anwar
2. Start production of shale oil (we have a lot)
3. Encourage Nuclear Power for production of electricity.
4. Drill off the East Coast, West Coast, open all areas of the Gulf of Mexico to drilling.
5. Build more refining capacity (there has been none in years because of the damn environmentalist) in this country that can handle the sour crudes instead of just the sweet crude.

All of the above will entail shutting down the environmental road blocks laid down by the crazy green socialists.

[TexasCowboy]

That's it in a nutshell, C.

It's amazing that we have known these facts for many years, but our leaders can't see them.

[B4Ranch]

With the Republican vote supporting it. Dims or Reps can't do a thing without the support from the other side.

[Former Proud Canadian]

The refineries are running flat out and any downtime will impact prices. However, the VP has stated, and I agree with him, that the requirement for "boutique" gasoline blends for different areas of the country is adding in a lot of cost for dubious benefits.

[KillBill]

Bullshit. You can't just strip the taxes off. They can't eliminate gas taxes without raising income taxes, or eliminating roads. It is physically impossible.

I'd much rather have people who drive and buy gas pay for the roads.

[A Ruckus of Dogs]

When people started preventing oil exploration in the U.S. and went along with the enviros, this was bound to happen.

Oil prices are rising because of competition with other countries, namely China, not because of enviros. India is also coming on line.

[DCPatriot]

Good thing I have a bible as I have no faith in the federal government.

And your bible...plus $2.75 will buy you a gallon of 93 octance, buddy.