Gas and Oil Prices Death Knell for the GOP in 2008

Published on November 7, 2007 By COL Gene In Politics

Energy prices could be one of the most important issues in the 2008 election. Surveys of probable reaction to the continuing increase in both gasoline and heating oil prices clearly show that almost 40% said they would be forced to cur spending in other areas because of higher energy prices.

Bush and the GOP have done NOTHING to deal with the energy issues or in moving our country to become less dependent on oil. They did not support major initiatives to develop alternate energy production such as wind, solar, geothermal etc. The refused to force conservation of existing oil supplies by passing a new round of CAFÉ standards.

What they did is try and drill in Alaska which does not have the potential to solve the problem because of the limited amount of oil believed to be there and the danger of another oil spill is a factor. They Gave Big Oil more and more tax credits which has done nothing to solve the problem. All Bush and the GOP has done is tell us we are addicted to oil.

In 2001 when Bush took over, Crude Oil prices were about $27 a Barrel. Yesterday they were $97 and we are more dependent on that higher priced oil then ever. Gas was under $1.50 a gallon in January 2001 and is over $3.00 today. The Bush supporters will tell us that bush and the GOP do not control the price of oil. They are correct. The issue is that had Bush and the GOP took aggressive and effective action seven year ago we would be better able to deal with these higher prices and because OUR demand would be lower, the actual price could be lower.

Bush has told us we need to judge him and the GOP in Congress by RESULTS. GOOD IDEA! After 7 years of his so called leadership we are more dependent then ever on foreign oil and look at what has happened to oil and gas prices since he took over. GREAT JOB Mr. Bush! The Voters need to look at the Bush/GOP leadership and decide if they want to continue the energy policies we have been following by electing another person who holds the same outlook as Bush on energy. Neither Ruddy, Fred, John nor Mitt has proposed anything that even looks like a solution. Just more of the same- another round of tax breaks for Big Oil.

Comments (Page 4)

danielost

on Nov 08, 2007

The price of oil reached $50 a barrel over the summer, which is a record high, then fell slightly a few weeks ago.

~ Big oil reservoirs are becoming more difficult to find and development is becoming more

~ The technology to develop and produce oil is becoming more costly

~ World oil demand is growing at the fastest pace in over two decades

~ Oil companies have also been careful on costs since the '97-'98 price crash that slashed prices and triggered mergers.

~ Many new ventures are in remote areas, which demand more expensive equipment and are more susceptible to delays.

~ OPEC, which controls around half the world's exports, has in recent years worked hard to stop stocks building, especially in the United States .

~ Political instability in Venezuela, damage to oil pipelines in Iraq, and legal difficulties faced by Russian oil giant, Yukos, have all spurred fears that the supply of oil will be disrupted, leading to high prices

Daiwa

on Nov 08, 2007

Don't confuse Gene with thoughtful analysis - drives him crazy.

You know what his momma taught him as a boy: "If you can't say something bad about Bush, don't say anything."

danielost

on Nov 08, 2007

i really shouldn't confuse him by talking to him. but you have to stand up to bullies.

COL Gene

on Nov 11, 2007

Reply By: danielostPosted: Thursday, November 08, 2007You failed to explain that if it is supply and demand that sets the price in the oil business then the high level of supply would be driving DOWN prices not sending them to all time highs. the only problem is the demand is also high. and the higher the demand the higher the price.

It is Demand relative to supply that normally sets prices. If both demand and supply are up prices should not increase. Even though demand is up in general, demand at this time of year is NOT at a peak and supplies are high. Again the supply vs. demand does NOT justify the current gas price increases. It is an example of how oil companies can and do set prices as they want. They can also create supply problems and drive up prices. The PROOF is in the Bottom Line. Oil Company profits. That is how we must control BIG OIL-- tax away their excess profits no matter if they create supply problems or just increase prices - the end result is the same-- The consumer must suffer from the increased oil prices and the oil companies rake in the added profit! That will all end if the added profit is taxes away and invested in non oil energy that is under OUR control!

drmiler

on Nov 12, 2007

IE: More of the clueless ones BS. As quoted from a "government" page, Gene is shown once again to be wrong.

Why are gas prices rising?
For the past 20 years, the United States has benefitted from declining energy prices. With cheaper gasoline readily available, Americans renewed their enthusiasm for larger, less fuel efficient vehicles. Consequently, today the fuel economy of the vehicle fleet is the lowest in 20 years. Refiners have made business decisions not to build new refineries in the U.S. Instead, demand was met over the past 20 years by expanding capacity of existing refineries. As refineries reach maximum capacity, refiners and marketers often choose to import gasoline and other refined products. Today, Americans now confront a situation where supply and demand are in a delicate balance.

The following major factors contribute to rising fuel prices:

During the summer of 2004, worldwide crude oil prices have been at their highest level in more than 20 years. Excluding taxes, crude oil costs are the single largest component of gasoline costs and gasoline prices reflect those costs. Crude oil costs account for nearly half of the cost of a gallon of gasoline.
Fuel demand continues to increase. The fuel economy of US fleet is the lowest in 20 years and Americans continue to travel more. Vehicle Miles Traveled (VMT) is up. Over the past 20 years onroad VMT has increased by 114% while population has only grown by 27%. Also, the worldwide demand has increased, especially from China, India, and other countries with rapidly growing economies.
Tight supply. Refiners are shutting down for longer intervals for maintenance leading to draw down of inventories to low levels and little flexibility to respond to increases in demand.
Bottom line: the above factors have caused all gas prices -conventional as well as RFG- to increase in every region of the country.

WWW Link

danielost

on Nov 12, 2007

That is how we must control BIG OIL-- tax away their excess profits no matter if they create supply problems or just increase prices - the end result is the same-- The consumer must suffer from the increased oil prices and the oil companies rake in the added profit! That will all end if the added profit is taxes away and invested in non oil energy that is under OUR control!

see he doesn't care about the poor he just wants to give the government more and more money to throw away.

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