Posted on 03/01/2011 3:15:30 AM PST by 2ndDivisionVet
Media reports blame rising gasoline prices on Mideast turmoil, but industry analysts say the real reasons are closer to home -- at the White House and the Federal Reserve.
President Barack Obama's moratorium on drilling and his anti-oil policies continue to rattle energy markets and fuel ongoing price hikes at the pump. And no one -- least of all Obama -- is surprised.
On the campaign trail in 2008, then-candidate Obama called for cap-and-tax policies under which energy prices would "necessarily skyrocket." Studies have since questioned the environmental and economic value of such policies.
Undaunted, the Obama administration canceled hundreds of gas- and oil-drilling leases in Western states. Obama then slapped a series of bans on offshore drilling.
Two federal courts have struck down portions of these moratoriums, but, as with the ongoing implementation of Obamacare (declared unconstitutional by a U.S. district judge), the administration flouts the courts and continues to choke off domestic oil production.
American Solutions, a conservative Washington, D.C., think tank chaired by former House Speaker Newt Gingrich, says Obama's actions have "ultimately led drillers to relocate their rigs (and hundreds or even thousands of good-paying jobs) to other parts of the world, and the long-term impact on domestic production will no doubt be devastating for consumers."
By contrast, the University of Alaska at Anchorage estimates that drilling for oil and gas off Alaska's coast could create more than 50,000 new jobs per year, in addition to producing more than 10 billion barrels of oil and 15 trillion cubic feet of natural gas.
There are another 86 billion barrels of oil in America's Outer Continental Shelf, yet the Obama administration has banned most production there. Not a single new drilling permit has been issued in the United States since last October.
Still, Obama's Interior Secretary Ken Salazar said the government feels "no pressure to hurry its permitting process.”
Ironically, administration policies that drive higher gas prices are helping the very industry that Obama tries to demonize. While rising petroleum costs threaten to tank the U.S. economy, Exxon Mobil's fourth-quarter profits soared 53 percent.
Then there's the Federal Reserve, whose "reflation" policies are driving down the value of the dollar.
In an analysis of recent oil prices, the Wall Street Journal noted, "It's important to keep in mind that oil was already trading in the $85 to $90 a barrel range before the recent irruption in the Arab world. The run-up to that price territory began in earnest last year after the Federal Reserve embarked on its QE2 strategy of further monetary easing."
"QE2" is "quantitative easing, which, in effect, pumps more money into the economy. But in doing so, the Fed devalues the greenback and triggers speculation on things like oil.
The Fed claims that rising oil prices are simply a reflection of higher demand. But, the Journal found that demand is "not enough to explain what has been a nearly across-the-board spike in prices for dollar-traded commodities."
"The Fed will use the Libya turmoil as another alibi, but there's no doubt that oil prices include a substantial [Fed Chairman] Ben Bernanke premium."
Obama's Treasury Secretary Timothy Geithner seems nonchalant. "The world's got a lot of experience in managing the tensions that could come with short-term impact on commodity prices," Geithner told reporters last week. He added, "It's not rocket science."
But since the U.S. consumes about 7.5 billion barrels of oil a year, every $10 a barrel increase costs the U.S. economy about $75 billion. And, notes the Journal, "Since over half of that oil is imported, the benefit flows to foreign producers."
Industry analysts argue that the Fed's monetary policy and the Obama administration's energy policy are the two biggest factors in the rising price of gasoline.
Obama maintains that his "green" polices that impose higher fees and charges on the petroleum industry will "break our dependence on oil."
Energy economists say such a strategy is ultimately counterproductive.
"If the president is truly serious about raising revenue, then he should eliminate all energy-related tax preferences and let all sources compete," said Robert Bryce, a senior fellow at the conservative Manhattan Institute.
If I were a Marxist usurper who never did a day's worth of honest labor in my life, and I was placed into office by one of the richest men and a future leader in the one world government, I'd feel pretty damned proud of myself about now.
The military takes an oath to defend the Constitution. When elected officials choose to undermine it, ignore it, and mangle, it is their sworn duty to protect it. The country is rapidly approaching a time when seperation from the corrupt powers in DC must be an option. How can you be so blind to not see what is happening?
There it is. I believe there's no difference between Hussein and any other progressive, like Kerry or Kucinich or any number of socialists infesting the moonbat wing of the Dem party. The difference is Hussein is shielded by the race card. John Kerry, had he won, would have tried the same things, but he wouldn't have gotten nearly as far because people would have stood up and cried BS. I'd bet that if Pres Kerry had appointed a host of Marxists as unelected czars, his presidency would have been stopped cold and even the Dems in the Senate would have objected, but because he's black Hussein gets a pass from the DC power brokers and the MSM and even the GOP.
Normally I'd agree, but lets give the new Tea Party folks a chance. I like what people like Walker are doing, and there is at least push back coming in the House. What we need to do is start primarying the RINOs and running conservatives. It took decades to get into this mess, so it'll be awhile getting out.
They cannot overthrow the three branches of government without breaking that oath.
And don't post facts either.
http://www.freerepublic.com/home.htm
You really need to stop promoting this on Free Republic.
I disagree. Remember when we had $4.50/gal gas and Chuck Schumer was all over the place holding hearings on oil execs. At that time Bush started easing up restrictions on domestic drilling and prices started falling. This just on the speculation that the US was getting serious. Of course right after that Hussein was elected and here we are.
It can happen if the rest of the world believes we're serious.
Granted...I want "Drill, drill drill, baby"...as it's good for our country. Until we can get serious about nuke power, clean coal power, natgas power.
But I think the poster is correct...demand is up, and up big in China and India..and quite a few other countries.
Crimes against the United States of America.
Agreed
Ah, yes, the old, infamous 'omelette ala Marx' recipe. Literally billions of eggs broken, and a fair number of kitchens laid waste to, and nobody to date has ever seen anything near approaching an edible omelette. Isn't it long past time that recipe be consigned to 'the round file'?
the infowarrior
Here is a fact missing from your list: We do not have a Constitutional Government. We have a foreign power running the government. Do you think a President representing the US would side with a corrupt mexican president and the criminal aliens flooding the country would attack US citizens in Arizona?
bump to the top
In order for that to happen, the states will need to guarantee that the Feds cannot prosecute the companies.
i have this flight of fancy when going to the gas station. There should be a large mock-up of Obama, and each time the prices go up, his ears expand.
It wont be long now before people will have to wait hours in line to purchase gas. Only turning on their cars to move up in line before turning them off agian. Then come the riots.
Don’t confuse evil for incompetence. Obama is evil, not stupid.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.