Gas Prices Jumped Over Night – Now What?

Russ Steele

The prices of gas is becoming a political issue and Obama is seen to be standing in the way according to a Blogger Mom.

 This president has been nothing but bad news on the energy front. His moratorium in the Gulf of Mexico bankrupted Seahawk Drilling and put over 600 people out of work. His rejection of the Keystone XL pipeline to transfer crude oil from Canada to refineries in Texas not only robs the United States of thousands of jobs, but harms the planet because now Canada will ship that oil to China, which will create a lot more pollution than if it had gone to Texas.

We import nearly 60% of the oil used here in America, and much of that comes from the Middle East. In case you hadn’t heard, things aren’t all sunshine and rosebuds over there. On Monday, Iran announced that it would no longer export oil to Britain and France. The U.S. does not import oil from Iran, and now Britain and France are going to be going after the same sources as us. It’s basic economics: Limited supply plus increased demand equals skyrocketing prices. 

What’s that? We should be focusing on green, renewable energy? We should invest in, oh I don’t know … let’s say … a solar panel company? How about $535 million in taxpayer dollars? Is that enough? Ok, done. Wait … that already happened. Solyndra went bankrupt after George Kaiser, one of Barack Obama’s campaign bundlers, got a big fat payout. Just because that wasn’t painful enough on its own, they later threw the existing solar panels into the trash.

As more nations industrialize and develop a need for oil, it becomes more and more important that we increase our supply. We have plenty of oil — tons of it. We just have to get it. Right now, our president is standing in our way. It’s a good thing it’s an election year, because if Barack Obama won’t get out of the way in making America energy independent, we’ll vote someone in who will. 

But is Obama standing in the way? Consider this from an article in the San Francisco Chronicle: 

The number of rigs in U.S. oil fields has more than quad­rupled in the past three years to 1,272, according to the Baker Hughes rig count. Including those in natural gas fields, the United States now has more rigs at work than the entire rest of the world.

“It’s staggering,” said Marshall Adkins, who directs energy research for the financial services firm Raymond James. “If we continue growing anywhere near that pace and keep squeezing demand out of the system, that puts you in a world where we are not importing oil in 10 years.”

There are doubts that energy independence is that close. But many say the booming shale oil fields in Texas and North Dakota and the growth of deep-water drilling in the Gulf of Mexico will allow the nation to cut its reliance on oil imports significantly over the next couple of decades.

Last month, the U.S. Energy Information Administration upgraded its forecast of crude production in 2025 to 6.4 million barrels per day – 1 million barrels more than were pumped in 2010.

Previously, the EIA had projected the U.S. would peak at 6 million barrels in 2022.

So, if we have the oil, why are prices spiking and becoming a political liability for President Obama.  Obama promised us higher energy prices and now they are here, and the only reason seems to be the administrations energy policy.

Note: The next EIA price release is sometime today. When it come out I will up date my fuel graphs at The Next Grand Minimum.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

6 Responses to Gas Prices Jumped Over Night – Now What?

  1. D. King says:

    Cue government gas coupons for the poor and middle class.

  2. sean2829 says:

    A very interesting article on the price of gas vs. monetary policy. Apparently it’s not that the gas is more expensive, your money is just worth less.

    http://www.nationalreview.com/planet-gore/291814/gas-price-spike-its-monetary-policy-stupid-greg-pollowitz

    • Russ says:

      Sean,

      I heard that on the radio today also. It makes sense, the government keeps printing money and the value of dollar keeps slipping. I doubt that most middle and lower class folks think about that when they are pumping $5 and $6 a gallon gas.

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