Every now and then an Obama Administration Official says something completely idiotic and insensitive…
Earlier this week Obama’s Energy Secretary, Steven Chu, when asked whether the goal of the Administration was to lower the price of gas, answered “No.”
How out of touch is this guy?
With his chauffered government vehicles and private planes paid for by “We, the People,” it’s clear that he appears uneffected.
Now let’s take the time machine back a few years and find out why Mr. Chu is so indifferent to the plight of average Americans. Back in 2008, Mr. Chu ruminated that “the price of gasoline over the long haul should be expected to go up.” And that “somehow we have to figure out how to boost the price of gasoline to the "levels of Europe,” which are north of $7.00 a gallon!
Guess we shouldn’t 
be surprised gas prices are rapidly approaching $4.00 a gallon, should we?
Why doesn’t Obama care about gas prices and why hasn’t he fired Mr. Chu?
The President has also made his contempt of fossil fuels no secret. He just stopped the Keystone Pipeline, which would have delivered badly needed oil to the domestic supply from Canada. The pipeline would have also created by some estimates as many as 20,000 jobs which this country needs!
The Administration has also invested untold billions into green energy companies, of which some have gone bankrupt or have cut jobs in the last six months, leaving the taxpayers on the hook for the losses.
I’m not saying that alternative energy sources are not the future- they are.
And the President should be lauded for leading the way on alternatives to oil, but the technology is not there yet and is possibly decades away from replacing oil… not to mention being profitable.
Gas prices have shot up 30 cents a gallon in February alone and the American People do not have the luxury of waiting for alternative fuel sources to be developed- we need relief at the pump now!
Chu On This
Honda makes a car, the Clarity, that runs on hydrogen. It emits water vapor and can be refueled at home.
Compressed Natural Gas, which is abundantly available, is the perfect replacement for petroleum based fuels. The technology exists in new passenger and commercial vehicles. Most late model cars can be converted to run on CNG for around $3,000.00. For another $2,500.00 a home fueling option is also available. We have so much natural gas in this country that we can tell OPEC to fuck off for at least 50 years.
Half black Barry has his political schwantz so deeply buried in the rotting vaginas of big oil, the big three and solar welfare that jumping ship for a more effective energy policy makes him the maitre d on the democrat Titanic.
Go to pickensplan.com for the REAL TRUTH on the myth of our energy crisis.
David, smartman-pretty interesting.
I did hear on a news program, the the Republican Gov of Nebraska (?) stopped the building of the pipeline coming out of Canada because of his concerns over the possible rupture of same, directly over the under water aquifer in his state. This was supposed to be a hiccup and no one involved imagined it more than a temporary delay.
I am outta my pay grade here, but I also think I remember them saying it would take 3months to see a way around it.
I have also read that in Pennsylvania, there have been some disasters with another process, the “fracking” process which is used to aquire oil from shale.
The oil companies have always had us by the short hairs and I wouldn’t be suprised to hear we are takin a beatin again.
Thanks.
I’m a big proponent of CNG in cars….
I keep toying with the idea of converting my car to it and getting the home fueling system as well. should be fairly simply to install since my basement isn’t finished and there is easy access to the gas line. My biggest concern is over the road trips, and trunk space. As I understand it, the gas tank eats into your trunk space. And if you are taking a road trip, it’s a major pain in the ass to find CNG filling stations for your car. They just aren’t that plentiful. I think there may be ONE in the entire KC metro for public use. But since my car is used 90% of the time for going back and forth to work and running errands, this might not be a problem.
cng or hydrogen
As far as hydrogen powering cars, the biggest problem is the energy it takes to get the hydrogen in the first place. You either have to break down natural gas or electrolysize water, both of what take more energy than you get when you burn the hydrogen. As far as running cng, You would probably never amortize the cost of converting an existing car over to it. If a car was equipped that way to begin with, it would make more sense as you would not have the cost of an existing fuel system to begin with. Also, the cng tank could be placed better than inside your trunk. You also would need very little in emission equipment since cng runs extremely clean compared to gasoline. If equipped new for cng, a car would probably be cheaper to manufacture than it is now.
I’m sure he cares, but lost on many people is the fact that he can’t do much about them. Oil and gasoline prices are set by a global market, based on global supply and demand. Consumption may be down in the United States (we used 7% lass last year versus 2010), but it’s growing in Asia, which has overtaken the United States as the world’s largest buyer of oil.
So what we get is this silliness (this article included):
Liberals on high gas prices, 2004: It’s all Bush’s fault.
Conservatives on high gas prices, 2004: It’s all due to market forces and Bush can’t do much about it.
Conservatives on high gas prices, 2012: it’s all Obama’s fault.
Liberals on high gas prices, 2012: It’s all due to market forces and Obama can’t do much about it.
Enough already.
Missing the point
The President doesn’t control gas prices. Congress doesn’t either, but they could. The US is now exporting more of its oil than it is importing. Everyone is calling for more drilling in the US and that Pipeline, but they are missing the point. It isn’t about how much oil is produced in this country, it is about how much stays. The oil companies make more money by exporting it, so they do that. It’s called free enterprise. They are going to do whatever they can to make the most money. There is no reason for them to sell it here. If congress wants to make laws saying they have to sell it here, congress could do that. But that would be interfering with capitalism and republicans hate that.
Global supply and demand my ass!
Oil prices and their bullshit run up is based on PURE SPECULATION on worst case scenarios. A yurt on the Russian steppes blows over and kills a horse and the oil traders use it as a reason to run oil prices up. Those bastards will use ANYTHING and I mean ANYTHING to inflate oil/gas prices. Strong U.S. dollar? Raise gas and oil prices because the U.S. consumer will increase consumption. Weak U.S. dollar? Raise oil and gas prices because it takes more money to buy the same amount of gas. It’s total horseshit. Speculation and FEAR are what drives the energy markets, not supply and demand so much. And piss on China and their demand. Those overpopulated morons are over farming their land, turning it into a desert and still can’t feed everyone. The Gobi Desert is increasing in size at a rapid rate. The Chinese will starve themselves to death as their entire country turns into a desert. Bottom line is that the energy sector is raping the American public with phantom shortages that don’t exist. There is PLENTY of oil and gas to go around.
Hey Guy Who Says..
You are exactly correct. This run up started with Libya which really didn’t ship much oil, but any excuse and know the speculation is that somewhere, sometime soon, something bad may happen. This is what you get when you strip regulations off the market and let laissez fare capitalism rule. Capitalism is great, unregulated, unfettered capitalism is GREED. Thank your republican “there will be NO regulation on the market at all” Congress for this, kids. Not to say the democrats are any better.
Two articles for a better prospective on economy
http://www.slate.com/articles/business/moneybox/2012/02/higher_gas_prices_the_republican_plan_to_blame_high_gas_prices_on_president_obama_.html
http://www.slate.com/blogs/breakingviews/2012/02/29/ethical_economy_do_we_idolize_finance_.html
Speculation was supposedly reeled in with legislation after the crash. But no one in charge, or wanting to be in charge, has enforced the provisions.
Allow me to suggest that….
One place to start in controlling gas prices is usage. Seldom is the argument made that we need to drive smaller, more fuel efficient vehicles. Not tiny Fiats like me, unless the shoe fits, but reasonably-sized cars and trucks that get decent to excellent gas mileage.
The options are out there and growing and many people are moving in that direction but way too many people just don’t get that bopping around in two ton vehicles by themselves with a “Hemi” are wasteful and bad for this country.
We’ve become spoiled frankly and really don’t give much if any thought to how this affects not just the environment but wars overseas and the security of the country.
And as a former commodity broker I can tell you that supply and demand is real and speculation is an important part of a free market economy.
The same speculation that drives up gas and gold prices when there is fear of war with Iran is what drove prices down after our first flirtation with $4 gas in the summer of 2008 long before Obama.
Speculation is an important part of free markets and is why tulips were once wildly expensive and why people today bid prices up for any number of things that are in short supply.
Oil is traded globally on many different futures exchanges. US demand is not even a plurality of the global demand market. Every year, gas prices bottom out in february and peak around labor day. The President has no power over gas prices, aside from possibly ending the war, which would reduce our individual country’s demand fractionally.
http://www.youtube.com/watch?v=ziNaZxvp-Qk&feature=related
Speculation and artificial markets
Speculation has always been a reasonable financial tool. The company I worked for bought natural gas futures and saved millions over the years pre-paying for a product we consumed.
But speculators who drive the price up solely for financial gain are out of control. Maybe 5% of the people but their manipulation of the market was supposedly stopped by recent law. It hasn’t.
As far as buying a car which gets better mileage than what you drive now (if it is paid for) is as bad for the environment as if you go out and buy a Hummer. The new natural resources needed to build your new vehicle will cost you more than driving your current vehicle.
Speculation and artificial markets
Speculation has always been a reasonable financial tool. The company I worked for bought natural gas futures and saved millions over the years pre-paying for a product we consumed.
But speculators who drive the price up solely for financial gain are out of control. Maybe 5% of the people but their manipulation of the market was supposedly stopped by recent law. It hasn’t.
As far as buying a car which gets better mileage than what you drive now (if it is paid for) is as bad for the environment as if you go out and buy a Hummer. The new natural resources needed to build your new vehicle will cost you more than driving your current vehicle.
Jeezus, Orphan…
How about a couple paragraphs and some links, wild man?
Were you home sick the day they had that class in 7th grade called, “Size Matters”?
You obviously don’t understand speculation. I was not just a futures broker, I worked in the cash grain merchandising business as well.
And “speculation” comes in many forms.
When people worry about war in the Middle East it becomes a mindset that takes over the markets. It’s not just some Bunker Hunt wannabes playing games. The world market is waaaay to big for even those boys (and I suppose, girls).
The marketplace is a huge, organic mix of anybody and everybody and it takes on a mind of its own driven by any number of variables. Weather, war, supply, demand, fear, optimism – you name it.
And don’t give me that Hummer bullshit.
The fact is that people are going out each and every day buying new and used cars.
All they need to do is buy smaller and/or more fuel efficient cars. There are plenty of five and six passenger vehicles that get 30 mpgs instead of 15. Skip the Hemi and go for the version with the smaller engine.
And in your case, if you’re shopping used, steer clear of the Hummer and find yourself a nice Yugo.
When you are born on third-base but think you hit a triple
So if a shaker of salt costs $2 and a 100#-sack of salt costs $5, the bag is more economical, right? Your answer to that question will show how much of an understanding of economics you have at your disposal.
I’m one of those folks who look on a car as a mode of transportation. I drive ’em until they are no longer serviceable. Over 200,000-miles before I even think of getting another. Compare the cost of buying a new car at 40mpg vs the cost of operating a car which is paid for and is in good shape. It will take you 10 or more years to recoup what you save in fuel. If you don’t drive a car for over 10-years before trading you will never recoup the money.
Buying new is stupid.
Supply & demand, the demand is not there so the supply of gas is more than demanded. The price should fall but since the market is manipulated in ways which were purportedly stopped by regulation, they continue to rise. What is occurring now is not speculation but manipulation.
When you are a broker you make money when a customer buys or sells, regardless of a price rise or fall.
Orphan of the Road is dead on.
Well done sir.
Never ceases to amaze me how much interesting the readers are here than the writers.
Hyperlink – An element in an electronic document that links to another place in the same document or to an entirely different document. Typically, you click on the hyperlink to follow the link. Hyperlinks are the most essential ingredient of all hypertext systems, including the World Wide Web.
Any private citizen driving a Hummer is an a-hole.
There’s just no practical reason to have one here in the KC Metro area.
Why is it we think we are entitled to cheap gas?
Very very interesting stuff guys–
Orphan, any thoughts on the Canada pipeline, the lack of refineries in America and fracking???
We need to frack outselves outta this economy.
Interesting comments, thanks…
Chuck
The American Petroleum Institute (the Vatican of Big Oil) says we have too much oil and refined products.
The Keystone Pipeline was poorly conceived as proven by its route.
There is a large refinery in southern Kansas which has been kept closed by Koch Brothers and Big Oil. Sun Oil is shutting down three refineries in Philadelphia.
A new refinery is planned for the oil boom in ND. But boom times have brought bad times to the locals. You can’t buy or rent a house/apartment and food is scarce with all the new mouths in town.
Next year will be 40-years since the first oil embargo and crisis. And we still have no sustainable energy plans. Just knee-jerk reactions when crisis erupt.
For every complex problem there is an answer that is clear, simple, and wrong.
H. L. Mencken
Beat them at their game.
Well Hearne as well brings up a point and I have said for a long time if you want cheaper gas stop paying them what they want for it all the time. And buy cars that get better MPG.
People all around me waste gas day in and day out running all over the place. If people would start really cutting back on their gas usage and started creating a surplus we would see cheaper prices. In every commodity to much or a surplus always results in a price drop. Hell just ask any farmer that when a record corn crop is coming off the fields and the price keeps dropping everyday during harvest.
Stop buying so much and you will hit them in the pocket book and the price will drop. Not like they can store it for very long.
Super Dave–
But if Orphan is correct, then the amount of gas purchased will become more expensive by Oil company fiat (nice pun, huh…?) and our expenditure will have less to do with supply and demand then arbitrary manipulation by Big Oil and friends.
True???
supply and demand still applies
At some point, people will buy less of any product if it is priced too high. When the demand goes down, the the supply goes up, the prices drop. Oil got up to $150/barrel a few years ago and the dropped like a rock. It is not even to the advantage of the big oil to have elevated prices for too long because people will change their habits accordingly. Look at the drop off in sales of large suvs that occured when gasoline got that high before. The sales of smaller cars improved and have been more popular since then.
Again, let me remind you that…
Not everyone is a codger driving a 15 year-old car with 175,000 miles on it.
Take a look in Johnson County, the Plaza – heck – pretty much anywhere.
People are buying and driving hundreds of thousands of new and late model cars each and every year.
All I’m saying is stop buying the heaviest, most wasteful cars and start buying the ones that get decent to excellent gas mileage.
It’s that simple.
sorry hearne
I am not going to drive a Fiat!!!!
Hearne, I hear ya,
but you saying “Its that simple”, doesn’t convince the others on this very thread, who make some compelling arguments that gas prices for teh end user are determined NOT by supply and demand.
For the record, I don’t know what to believe having only a cursory knowledge of the myriad variables and no hands on experience. I think that I am just another doofus cursing the fates as I hand over my cash to nefarious, evil forces that seem more and more in control of our lives.
Yep, look around at all those shinny cars
Few paid for and many driven less than 50,000-miles when traded. Throw in a 70-month loan and you have Johnson County wrapped up with a ribbon.
The energy used to make the parts, construct the vehicle, ship and keep ’em shinny, shinny will overwhelm any “green” savings going from a 20mpg vehicle to a higher-mileage vehicle.
Of course you can trade in a very late-model Toyota for a Fiat (made quite a few worst car list, the big ‘un will be made in Serbia by, wait for it -YUGO) and feel all warm and fuzzy about doing your part to save the Earth. Of course you’ve anally raped it instead but it is the thought that counts.
Drive less, when you do NEED a new car buy one with the best gas mileage for your needs.
And for Mr. David Scott Whinnery, Esquire, do you know what happened the last time the President of the United States did something to really, really control the price of fuel? Google Nixon and learn.
Orphan is right about one thing: the only way to decrease net oil usage is to drive less, but unfortunately even that is not enough. Because any reduction in demand is met with a price decrease which then drives demand back up again, there is no free market cure for this problem: any slack in oil usage by the US and Europe will be taken up by Asia.
Never thought I’d say this…..
What’s everyone’s thoughts on the government taking over the oil business and running it, or making it illegal to export American oil? What kind of impact would that have worldwide?
I would hate to see the government take over the oil industry. First, they would run it inefficienty like they do everything else since the profit motive is now gone. Our tax money would end up having to support all of the redudnant, overpaid, and unnecessary jobs that would follow. Then, once competition is taken out of the equation, not only would the tax support be needed, but the prices would increase further. That is at least part of why gasoline is so expensive in many other countires. I also don’t think they need any more control over our lives than they have now.