It’s Not Bush’s Fault
Numerous and complex factors affect gasoline prices. A factor probably more significant than oil supply and demand is fear. Futures markets determine day to day gasoline prices and this is a good thing, because it is the futures markets that assure us regular supplies of gasoline and a host of other commodities. Fear of imminent Middle East war substantially drives up gasoline prices due to uncertainty of future supplies of Middle East oil.
Other factors include domestic refinery capacity, commercial distribution networks, exports of refined petroleum products (we do it better and cheaper than any other nation on earth) and anticipated government regulations.
It is the futures market that sets the tone for all underlying industries, commercial transportation, for example. Domestic over-the-road trucks consume approximately 4.4 million barrels per day of crude oil – the sum of all oil imports. When you consider links in the market chain, you can understand how fuel prices affect acquisition of raw materials (including agricultural products), transportation of raw materials to processing plants, the processing of raw materials, transportation of processed materials (including groceries) to consumer markets and ultimately, the amount of disposable income available to consumers to purchase finished goods (including groceries).
Low Cost Energy Drives America
In the broadest and simplest sense: costs of raw energy affect everything and everyone. As costs quickly rise, disposable income depletes rapidly thereby setting of a devastating chain of undesirable outcomes like UNEMPLOYMENT and INCREASES IN CRIME.
The Keystone pipeline is not the plot of sinister capitalists to destroy pristine farmlands and foul vital water resources: it’s simply a response to market demands for more refined petroleum products.
As I wrote in a recent article, Barack Obama is planning to use oil from our Strategic Petroleum Reserve (SPR) for political gain. It was created to temporarily offset the effects of an oil embargo, interruptions of oil imports. I can imagine Obama craftily planning to start pumping SPR oil one month before General Elections. Why then? We only have enough to last 39 days at 4.4 million barrels per day and all the man understands the shortsightedness of American voters.
If he depletes SPR and Middle East war breaks out, you will be living under hellish circumstances like you have never even imagined. As gasoline prices surpass twice what they were when Obama took office, you can your neighbors feel it in your pocketbooks. What will your life be like, if or when we deplete the reserves and war breaks out, factors that will drive the price of gasoline toward $10 per gallon?
I encourage you hard-working people in Ohio, Wisconsin, Florida and Virginia to put on your “thinking caps”. This sitting president, empowered by a radicalized Democrat leadership, is utterly destroying this country.
2012 Elections Matter
Remember in November and elect Republicans for Congress and the White House.