I believe it had more to do with this cause and effect:
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Posted on 02/21/2012 6:48:43 AM PST by SeekAndFind
Nothing drives voter sentiment like the price of gas – now averaging $3.56 a gallon, up 30 cents from the start of the year. It’s already hit $4 in some places. The last time gas topped $4 was 2008.
And nothing energizes Republicans like rising energy prices. Last week House Speaker John Boehner told Republicans to take advantage of voters’ looming anger over prices at the pump. On Thursday House Republicans passed a bill to expand offshore drilling and force the White House to issue a permit for the Keystone XL pipeline. The tumult prompted the Interior Department to announce on Friday expanded oil exploration in the Arctic.
If prices at the pump continue to rise, expect more gas wars.
In fact, oil prices are rising for three reasons — none of which has to do with offshore drilling or the XL pipeline.
The first, on the supply side, is Iran’s decision to cut in oil exports to Britain and France in retaliation for sanctions put in place by the EU and United States. Iran’s threat to this has been pushing up crude oil prices for weeks.
The second, on the demand side, is rising hopes for a global economic recovery – which would mean increased oil consumption. The American economy is showing faint signs of a recovery. Europe’s debt crisis appears to be easing. Greece’s pending bailout deal is calming financial nerves on both sides of the Atlantic, and the Bank of England and European Central Bank are keeping rates low. At the same time, China has decided to boost its money supply to spur growth there.
Neither of these would have much effect were it not for the third reason — overwhelming bets of hedge funds and other money managers that oil prices will rise
(Excerpt) Read more at businessinsider.com ...
Roughly 800,000 B/D can be exported from the tar sands to the world markets. That 800,000 B/D adds to the global supply putting downward pressure on prices globally.
“And nothing energizes Republicans like rising energy prices.”
This is so true. I remember the (now dead) TEA parties, and the violent and abusive townhall meetings sparked by rising gas prices. They even drowned a polar bear. Yeah, that’s the ticket.
What about the increased gasoline and diesel exports from this country to Europe?
With the advent of ultra low diesel and heating oil, it has enabled increased exports to Europe.
Inventories have plummeted as a result.
0bama’s fault, plain and simple. Reich can stuff it.
Exactly.
But Reich has no integrity, so he’ll never frame it that way.
What of it? I stated that it was not the value of the dollar, nor was it the price of crude oil that is responsible for the recent rise at the pump. Increasing exports to Europe only serves to placate demand at the current prices and, if anything would reduce the price if supplies exceeded demand.
I contend that the Oil Companies are again using the specter of "impending crisis" to justify an increase in prices at the pump.
hedge funds, at banks, who can borrow at less than 1% and trade for commodities to earn 5%...looks like a simple bet with low risk. What is wrong with that picture?
I believe it had more to do with this cause and effect:
.
.
What is missing in this article is the role of OPEC which is a price fixing cartel. If the US gets its oil from world markets it’s at the price set by OPEC and the speculators. However American oil sold in the USA is NOT subject to the OPEC price and can find its price equilibrium based on supply and demand. Canada is NOT an OPEC member so Canadian oil can also be sold to the US at market prices. Building the XL pipeline would not immediately bring down gas prices, but it would assure us of an oil supply that cannot be interrupted by chaos in the Middle East or the whims of dictators like Hugo Chavez. Bottom line if we exploited the known oil reserves in the US including ANWAR and the Gulf and completed the XL pipeline we would have secure sources of the oil we need and not be subject to OPEC price fixing.
The prices above were shown on SF KTVU this morning. They are blocking the prices of the higher grades which were over $5/gallon.
Remember the hate America Enviros have wanted $5/gallon for gas for years. If our economy was recovering, this will drive a wooden stake into its heart!
15 Trillion of Fairfax garbage sewage paper is being dumped in with the productive. (And the same goes for the euro-Brussels scam)
Mark this word folks >> CONSOLIDATION
CONSOLIDATION of Arbeitsziehungslager, is THE only reason two candidates, Mass-MittCare and The Undocumented, are being facialed before U.S. citizens.
This IS a big fat facial attempt.
Ah. The face transplant competition. Well, having seen the pix of 0bama in heavy cake dark makeup, we should include the lack thereof as a potential candidate, too, as we don’t see that face. Hypothetically speaking.
You obviously have little respect for Robert Riechhh. Is it just because he has repealed the law of supply and demand? You obviously don’t think he can do that.
Idiot goblin alert.
EPA pulls permits for two Texas City refineries
Published July 1, 2010
TEXAS CITY The Environmental Protection Agency on Wednesday rejected the air quality permits for 122 industrial facilities in Texas, including the BP and Valero refineries in Texas City.
The pulling of the flexible air permits that are issued by the state under EPA authority means the facilities do not have legal operating permits.
EPA Regional Administrator Al Armendariz said none of the facilities will be required to shut down but all will be required to obtain new permits under stricter guidelines.
Earlier this year, the agency pulled more than 200 permits, citing what it said were deficiencies in the Texas Commission on Environmental Quality flexible air permitting process.
http://galvestondailynews.com/story/160182
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