What Democrats don't get about gas prices

Yahoo Finance ^ | Mar 15, 2022 | Rick Newman

[where's_the_Outrage?]

herapists advise against making major decisions when you’re highly emotional. Democrats should heed that advice and stop proposing rash ways to lower gasoline prices.

With pump prices now averaging $4.33 per gallon, President Biden and his fellow Democrats in Congress clearly worry that motorist pain could doom them in the November midterm elections. Biden’s Energy Secretary, Jennifer Granholm, practically begged U.S. energy firms to produce more oil at an industry conference on March 9. Biden officials are pleading with Middle East drillers and even pariah nation Venezuela to boost supply. Some Democrats in Congress want to impose a new “windfall tax” on oil companies that could finance taxpayer rebates meant to compensate for costly fill-ups. And there seems to be some chance Congress could suspend the 18.4-cent-per-gallon gasoline tax.

The common failure of all these ideas is a misunderstanding of the dynamics in the oil and gas industry, which in the United States is dominated by private-sector firms answerable to shareholders and investors—not to government ministers. “The left thinks oil companies set oil prices,” says Dan Dicker, founder of The Energy Word and author of “Turning Oil Green.” “That’s just false. Oil companies don’t set prices. If they did, they wouldn’t have let oil prices go negative in 2020.”

Democrats proposing the Big Oil windfall tax, including Sen. Sheldon Whitehouse of Rhode Island and Rep. Ro Khanna of California, cite Exxon Mobil’s profits to make their case. In 2021, they point out, Exxon’s profit jumped 60% over pre-pandemic levels. Gas prices during that time rose from $2.69 to $3.41. That means, by extension, that Exxon profits when oil and gas prices rise.

[where's_the_Outrage?]

And conservatives believe in supply and demand, and that oil prices are negatively affected by Democrat GVT intervention, regulation, and hostility.

[kiryandil]

soyJack gets it!!

[HighSierra5]

Don’t worry. Green technology will solve this problem in 200 years.

[kiryandil]

[kiryandil]

[kiryandil]

Don’t worry. Green technology will solve this problem in 200 years.

Pooty stole-ded all the nickel.

[ProtectOurFreedom]

Where can I get me some of that $4.33 gasoline? This is Mountain View, CA around 9 am this morning.

[joshua c]

uh oh those digital signs only have four digits

they may have to tape a “1” on the sign soon

[where's_the_Outrage?]

LOL, remember that problem from the 70’s when gas went over a buck.

[MercyFlush]

I agree. I’m expecting $10 per gallon gas in California sometime in the summer.

[motor_racer]

I remember in the 70’s when pumps couldn’t handle prices over 99.9 cents.

[nascarnation]

I have to think at that point, most people will actually limit driving significantly. Commerce of course, has to keep moving and the costs flow down from there.

[MercyFlush]

The Democrats WANT our economy to crater so they’ll be all for this.

[LastDayz]

Practically everything has at least doubled in price. This is not going to turn out well. Not well at all.

[Snowybear]

They’re making prices high on purpose. That’s exactly what they want.

-SB

[Sequoyah101]

Everything?

[Sequoyah101]

They have already here. Traffic in front of the farm is down a lot. No more shooting gallery drivers.

[clearcarbon]

"Biden’s Energy Secretary, Jennifer Granholm, practically begged U.S. energy firms to produce more oil at an industry conference on March 9. Biden officials are pleading with Middle East drillers and even pariah nation Venezuela to boost supply."

Comeuppance has arrived for demRATs and oil producers know from experience that they'll get bidenized (screwed) in the end if they accommodate Joes clown club when they're feeling secure again.

[BobL]

“...The common failure of all these ideas is a misunderstanding of the dynamics in the oil and gas industry”

The reason that THE LEFT keeps winning is that we think they’re just misguided and simply talking common sense to them will do the trick.

Right.

[Sergio]

In California, taxes and fees add up to around $1.18 per gallon.