High Gas Prices: Obama’s Half-Truths vs. Reality

<b>When Stephen Chu, Obama’s Energy Secretary says “Somehow we have to figure out how to boost the price of gasoline to the levels of Europe”, it is a little hypocritical for the President to say he is doing everything that he can to reduce the price. Obama believes it is necessary to increase the cost of energy to an unsustainable level in order for him to pass his Cap and Tax policies for total governmental control of carbon emissions. Despite overwhelming evidence that there has been no global warming for the last ten years, Obama persists in his support of the fringe wacho environmentalists who believe that there are too many people on this earth and we are destroying it.

Excerpt: </b><i>The national average for gas prices is almost $3.60 per gallon, increasing 40 cents from a year ago and jumping 20 cents from just one month ago.[1] Prices are already surpassing $4 per gallon in some states and could threaten the country’s economic recovery.

Higher gas prices drive up production costs for goods reliant on transportation, and more money spent at the pump means less money spent at restaurants and movie theaters. Buying fewer goods and services tightens the economic vice and holds back job creation.

Almost 70 percent of the price of gasoline comes from the price of crude oil, with excise taxes, refining costs, and retail/distribution making up the other 30 percent.[2] Exporting refined petroleum products comprises a small percentage of total domestic gas production and marginally impacts prices. Despite demand for oil falling in the United States as a result of a weaker economy and a warm winter curbing the use of heating oil, the industrial rise growth of China and India continue to put upward pressure on the price of oil. The threat of Iran restricting oil exports to Europe is also driving up the global price, impacting gas prices in the U.S.

Here are five half-truths that one continually hears about gas prices and five actions that Congress and the Administration can take to effectively combat high gas prices.

<b>Half-truth #1: </b>Oil production is the highest it has been in eight years.

<b>Half-truth #2:</b> Increasing oil production takes too long and would not impact the market for at least a decade.

<b>Half-truth #3:</b> Oil is not enough. America has only 2 percent of the world’s oil reserves.

<b>Half-truth #4:</b> Oil is not enough. The country needs an “all-of-the-above” approach to reduce its dependence on oil.

<b>Half-truth #5:</b> Speculators are driving up the price of gas, and they need to be reined in.

<b>Five Actions for Congress and the Administration</b>

Congress and the Administration should:

<b>1. Get moving on permits.

2. Require lease sales when ready.

3. Create a sensible review processes.

4. Remove regulatory delays and limit litigation.

5. Approve the Keystone XL Pipeline.</b>

<b>Let the Market Work</b>

The market would respond if Congress and the Obama Administration allow it to work. Oil companies would respond by increasing their production, and consumers would switch to more fuel-efficient cars without any need to mandate more fuel-efficient trucks and cars. If the price of gasoline continues to rise, it will make alternative technologies all the more economically competitive.

</i> Read full Heritage Foundation report that discusses each of the proposals above, <a href=”http://www.heritage.org/research/reports/2012/02/gas-prices-5-half-truths-about-rising-gasoline-prices”>here.</a&gt;

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5 thoughts on “High Gas Prices: Obama’s Half-Truths vs. Reality

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  2. Wow. You need to focus your rhetoric a little.

    The increase in drilling has been on privately owned land not totally controlled by the government… Yes, speculators are part of the problem, but they are also part of the FREE ENTERPRISE system.

    So, apparently you hate some parts of the free enterprise system, but like others?

    And you think the Keystone pipeline would make anything better? That damned thing is already at 90% cost overruns here in the US, and 145% in Canada. And that pipeline is owned by TransCanada, and goes straight to the Gulf (OK, not straight there…), without stopping in the US – it’s scheduled to go to other countries, with only the barest trickle hitting the US market in the first place. So how much impact would it have had on the price of oil? (A price, by the way, that went up without ever having been impacted by the pipeline in the first place… funny, that…)

    • The free enterprise system is not perfect by any means, but it sure beats the alternative. The government has proven that it cannot run anything. The list is well known. If it is true that the pipeline already has a cost overrun, it is most likely because of government intrusion and indecision. Two plus years have already been spent to satisfy Obama’s agencies, and he now blames the Republicans for not giving him enough time to make a decision.

      I don’t understand your problem with the pipeline going all the way to the Gulf. Everyone knows that the refineries are there. Why? Because no new refineries have been built elsewhere because of the EPA, the Energy Dept., the Democrat Congress and now Obama.

      Your crystal ball is telling you that the refined gasoline is scheduled to go to other countries. Even if this is true, the project will create thousands of jobs here in the USA and the export of the gasoline will help our balance of payments A win win for the good old USA.

      As it now stands, with Obama’s stupid decision, the oil will go directly to China. It is you who should get focused on reality.

  3. Wow. Awesome. You’re really going to blame the President for the actions of gas speculators?

    Wall Street Journal (August 27, 2011): 1,069: The number of rigs drilling for oil in the U.S. this week.

    The figure reflects a huge surge in U.S. oil drilling, up nearly 60% in the past year and the highest total since at least 1987, when oil services company Baker Hughes Inc. began keeping track.

    I guess it’s true. Obama Derangement Syndrome does reduce your IQ.

    • It is easy to blame Obama since his actions make him an easy target. He is against carbon fuels and has stated it will be necessary to increase prices to enable him to get his Cap and Tax policies enacted. He has also shut down 90% of the areas high in oil and gas reserves that were approved by a Democrat Congress during the Bush years. The increase in drilling has been on privately owned land not totally controlled by the government. His unconscionable decision to stop the Keystone pipeline project is also another indication that he could not care less for the plight of the American citizen. Yes, speculators are part of the problem, but they are also part of the FREE ENTERPRISE system. If you are one of those that want government to control your life, then feel free to support his class warfare, anti-capitalist rhetoric. Hopefully he won’t be around after the November election and we can start the process of reclaiming our liberties. Yeah! Wow. Awesome.

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