Republican lies re: Gas Prices and Production. (They think you’re stupid)


The republicans are blaming Obama for high gas prices, and Newt Gingrish is going as far as to claim he will deliver $2.50/gal gas. And yet they are all lying. And proving once again- not only are they willing to lie to the american people- but that their followers are too stupid to understand the facts.

They insist that increasing production will lower gas prices. And they love to scream about the simple fact of supply and demand. Of course what they aren’t bothering to tell you- oil and gas are a global commodity, and prices are set on the international market.

And of course they omit the fact that US oil production is at it’s highest level since Clinton was president. That the refineries are operating at full capacity, and that the US is currently exporting in excess of 650,000 barrels of fuel a day- a record. Clearly, increased production is having no impact on domestic prices- as the oil companies do what they have always done- get top dollar for their product.

And lets look at the 2009 study from the Energy Information Administration: “opening up to drilling areas off the East Coast, West Coast and Florida’s Gulf Coast would yield just 500,000 extra barrels a day by 2030” and “The world currently consumes 89 million barrels a day, and by then would likely be using over 100 million barrels.” Their estimated savings to americans- 3cents a gallon.

And let us not forget- Gingrich, as well as Romney and Santorum have publicly said they would attack Iran- a country that puts 2.5 million barrels of crude on the world market a day- 5 times what the exploitation of known US reserves could produce (and never mind the fact that if all those sources got approved for exploitation today it would be years before a single drop of fuel became available on the market from them)

And of course the Keystone pipeline lie- which BTW Obama and the democrats did not kill- they just challenged the current proposed path- in no small part due to the letter from Republican Nebraska Governor, and predominantly republican farmers and ranchers in 5 states who are concerned that a spill would destroy the ogalla aquifer which supplies the water to farmers and ranchers in these five states- an aquifer that in parts of the proposed path is 2 feet or less deep. Also these republicans were (quite rightly) outraged by a foreign corporation threatening to steal their land using eminent domain. see: http://goo.gl/C1w9H

Regardless- it would not have brought any increased supply until 2016. And it ignores the fact that it would be bringing Foreign Oil to refineries that are already operating at capacity refining US oil.

and some other truths here:

Currently the US is setting records for EXPORTING gas- 650,000 barrels per day in December. 

Domestic production of oil and natural gas DECLINED every year under George W Bush, and has risen every year under Obama. Oil imports reached a record high under Bush in 2005, and have fallen to 45% under Obama- the lowest level since Clinton was president.

The republicans like to blame the liberal environmental policies for requirements for ethanol being added to gasoline- which raises the price. But take a look at where these rules actually came from. Thats right- republicans in congress- particularly those from the midwest who receives millions from the powerful corn/agriculture lobbies.

The United States holds only 2 percent of the planet’s proven oil reserves, but Americans consume 25 percent of the world’s daily output of crude oil.

the U.S. drilling-rig count is twice as high now as it was in 2009. With the exception of a spike in 2008, the current rig count is higher than any year since the early 1980s, according to figures compiled by WTRG Economics.

So lets look at some of the reasons gas prices have been rising.

Since the earthquake and tsunami in Japan a year ago this week Japan has taken most of its nuclear reactors offline- and has been replacing them by using 320,000 barrels a day.

Disputes in the Sudan have choked off 240,000 barrels a day.

Unrest in the middle east has dropped production by roughly 400,000 barrels a day.

And maintenance problems in the North Sea (norwegian and British Production) has caused a drop of 160,000 barrels a day.

And now lets look at demand: Chinas growth is fueling an estimated increase in demand of 400,000 barrels a day.

And world demand has skyrocketed to almost 90million barrels a day. Which of course is spooking traders/speculators on wall street – who are hedging their bets on prices rising- and by buying these futures at higher prices it drives the current prices up.

And hey- why not look at some truth about gas prices in the US in the past decade: When George W Bush took office in Jan 2001- gas prices were $1.52. By may of 2004 we cracked the $2 mark. By july of 2006 we had cracked the $3.00 mark. By july of 2008 towards the end of Bushs reign we were at a whopping $4.14 – almost a tripling of gas prices in 8 years. And where are we at today?  $3.80.  In fact- in 39 months under Obama we have only seen gas prices above $3 for 16 of those months- for well over half of his presidency gas prices were well under $3. Now- I am not saying this is Obamas doing- because it is not. Presidents have very little control over gas prices. BUT, foreign policy does play a role- and the chaos caused in the middle east producing countries by Bush certainly played some role in cutting supply and creating uncertainity that drove prices up.

But hey- maybe Newt has a magic wand. After all he promises to cut taxes, reel in spending, all the while building magic space colonies on the moon.

And- just a few references:

http://www.reuters.com/article/2012/03/12/column-oil-idUSL2E8EC3Y120120312

http://www.examiner.com/liberal-in-national/white-house-report-details-progress-for-more-u-s-energy-security

http://bostonherald.com/business/general/view/20120312us_report_oil_imports_down_domestic_production_highest_since_2003

http://www.washingtonpost.com/business/economy/voters-blame-president-for-gas-prices-experts-say-not-so-fast/2012/03/12/gIQA8fsO8R_story.html

http://www.washingtonpost.com/blogs/fact-checker/post/the-claim-that-wont-die-did-obama-want-higher-gas-prices/2012/03/13/gIQAf0EW9R_blog.html?hpid=z3

http://money.cnn.com/2012/02/24/news/economy/gingrich_gas_prices/index.htm

Federal Highway Trust Fund

federal tax: 18.4cents gas 24.4 Diesel

http://www.reporternews.com/news/2012/mar/11/the-experts-were-right-on-gas-taxes/

http://www.gasandoil.com/news/n_america/dc6ec5aa6f7a9b91b732d6447d4c0265

http://www.hcn.org/wotr/going-backwards-building-an-oil-refinery-in-south

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About drugsandotherthings

I am a criminal. Because I have used cannabis and psychedelics extensively. I have tried many other drugs, but never cared for the uppers, downers, or dissociatives. I love craft beer, and absinthe, but don't care much for alcohols effects- which quite frankly, are boring and dangerous. Science is my religion. I am in my 40's, and have travelled extensively. And often forced myself outside of my confort zone. I am employed, a respected member of my communtiy, an animal lover, an environmentalist, a political junkie, and the realities I have experienced continue to push me further to the left of the political spectrum.
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10 Responses to Republican lies re: Gas Prices and Production. (They think you’re stupid)

  1. The Mad Jewess says:

    Oh good Lord.
    Repub-vs Dem…
    Lets look at the reality; Jan 19, 2009, gas was $1.79 in NYC.
    Gas right here in Prescott, AZ today is $3.79. Gas in NYC is 4.50+

    Obama SUCKS, even if he was a R, even if he was an angel. You just dont want to ADMIT that he is a FAIL. I didnt want to admit that GWB was such a fail in 2003, but I did it, b/c he was and still IS a FAIL.

    There is NO reason WHY we cannot have $2.50 gas, its the Commie talkers that want EU prices. The Keystone would have been a move in the right direction, but, as usual, OBAMA is busy screwing up worse than BUSH, if that was even possible.

    HOW in the hell can you call yourself a D or an R? They are BOTH horrible, btw

    • Gas in Jan 2009 eh? You mean that brief window after Bush was defeated when the world sighed in relief (just for fun- google the world headlines after the election). Less the 6 months before (july 2008) gas prices set a record. And during Bushs tenure they almost tripled. See more facts on gas price at my blog post

      Look- I am no Obama fan. But I will say that before the election I was seriously considerring voting for McCain/Palin because I was saying that the situation in america was so bad that whoever was president- that that party would not be president again for decades. And I really do wonder if that is why McCain/Palin was the republicans choice…

  2. The Mad Jewess says:

    I hate Obama, and didnt like Bush. I seriously WANT $1.79-$2.50 gas again. I dont see why this is not possible.
    McCain/Palin ? OY YOY!
    Not I.
    I couldnt. Bob Barr.

    Yes, both partys are terrible.
    I am not a Paulan, but we need someone who will just be for the Constitution-thats all. Resore sanity, restore us from censorship, restore the govt back to being the protectorate of the Constitution, rid us of the ‘patriot act’, bad Bushs 291 exec orders and Obamas close to 100. NO govt healthcare-but perhaps a cap on the obscene prices- I get my own meds from India, they are $300 cheaper-and that is disgusting. Stop lawsuits out of control with med malpractice, and realize that Docs are NOT God.
    I could go on, you follow my general feeling I believe.

    • eideard says:

      I’m sorry; but, it’s hard to find a polite way to say you haven’t a clue. You apparently never read, follow or investigate something as basic as the news and facts aimed at the clowns who actually own this country. Go read an article by Edward Morse from Citibank on oil and pricing. He’s been doing this for decades and knows his subject – even if you don’t like who he works for or hopes to grow profits for.

      Within 10 years we won’t even need Middle eastern oil – even without the sensible changes we need to make for a healthier life for our planet and species. That still leaves the creeps who care more about profit from that trade than any citizen’s life.

      • The Mad Jewess says:

        Yep, I have no clue, gas is $3.89 now where I am, I dont go there to pay, I dont see the prices b/c I have no clue.

        I dont read those type books, the only book I need to read is 4 International and how progressives and Commies coupled w/ Islam are taking over this world since the 1700’s. “To eliminate the opiate”, Rabbi Antelman.

        We dont ‘need’ eastern oil, because we are sitting on oil here.

      • eideard says:

        Silly me. Thought I was addressing an adult.

    • eideard says:

      Here’s a post from April outlining the short term reasons for gas prices increasing – as they have. This was from an earlier, shorter appearance of Ed Morse with Tom Keene:

      http://tinyurl.com/6q5y842

  3. tetrahedron says:

    Great statistical data, you’re so right. The american and I lower cased it for the reason you mentioned (they think we’re stupid). The politicians are saying these nonsensical things e.g. gingrich, santorom,romney…we’re gonna lower gas prices if elected; the majority of the american people bought it.
    There is something disturbing in the nature about all of it. of post 9/11 public discourse. Western media, government officials, members of the US Congress, Wall Street analysts, etc. as an underlying cause of numerous World events Incessantly on a daily basis and gas prices are among that discourse. Where do you go from here? It appears that en mass there is an overwhelming degree of stupidity and it’s on auto-pilot. Keep on keeping on. You should be ppublishing if you haven’t. Don’t stop. I and others have read your post and it’s well liked.

  4. Pingback: The Lie that Won’t die- Gas Prices Doubled Under Obama | drugsandotherthings

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