Here's something it WOULD be nice for Obama to "fix"...

[JakeYonkel]

But wait, that'd help the middle class, something these last 2 administrations have had no desire to do.

http://www.theledger.com/article/201001 ... Per-Gallon

Gasoline Price Heading Back to $3 Per Gallon
Average national cost hits $2.70 a gallon, highest since October 2008.
By Frank Ahrens
& Mike Musgrove

WASHINGTON | Just what Americans need as they try to dig out from the Great Recession: Gas prices headed back to $3 per gallon.

The average national price of a gallon of regular hit $2.70 on Thursday, according to AAA. The price of gasoline is up 67 percent from this time last year and at its highest level since October 2008, a fact not lost on drivers.

Sayed Bilal, a cab driver in Rockville, Md., estimated that he's spending $200 more a month on gas than usual.

"It's affecting everyone's budget," he said, "especially after the holidays. In my business, I depend on people's pocket money. If they don't have any ... " He trailed off, with a shrug.

Why are prices rising even as demand for gasoline is falling? Current demand is well below levels seen in recent years. Oil refiners are actually trimming production.

The crudest explanation, so to speak, is that the price of gas is following oil upward. Oil has been rising, pushed north by increased demand and a weak U.S. dollar.

The global economy has been improving for the last six months, and more activity means more demand for oil, driving up prices. Another factor may be that the prospects for growth are attracting speculators who are bidding up oil prices. At the same time, the Federal Reserve printed billions of new dollars in its efforts to combat the financial crisis, devaluing each dollar in circulation, which may be contributing to the run up in commodity prices.

Even though gas is still well off its high of more than $4 per gallon, hit in mid-July 2008, commodities traders have been watching the price of crude oil rise since almost this time last year. Gas is already over $3 per gallon in Alaska, California and Hawaii.

More than a minor annoyance encountered every time you pull up to a pump, rising gasoline prices make a real impact on the U.S. economy, especially one that's struggling to recover after a nearly two-year recession.

Every 10-cent hike in gas prices equates to an additional $14 billion per year out of consumers' pockets, Miller Tabak equity strategist Peter Boockvar wrote in a research note on Thursday. Americans are spending $1 billion per day on gas.

Rising gas prices reduce other consumer spending, and can affect big-ticket purchases when prices hit certain points. For instance, when gas broke through $3 per gallon in February 2008, Ford forecasters predicted consumers would start buying smaller, fuel-sipping cars when gas hit $3.50 per gallon. As the monthly sales reports came out through 2008 and 2009, that proved true, as truck sales sagged and buyers moved toward compacts.

Crude saw a sharp spike in price in April and since then has been steadily rising, with light, sweet crude targeted for February delivery closing down slightly yesterday at $82.66 per barrel. This marked oil's first price retreat in the past 10 trading sessions.

The heavy snows and frigid temperatures across the U.S. over the past month have reduced gasoline demand, as motorists are driving less.

At the same time, however, the low temperatures have driven up all energy prices, including crude that is refined into heating oil.

When oil closed above $82 per barrel on Wednesday, it passed through something known as a resistance level. In trader-speak, a resistance level is like a soft ceiling - a price that traders do not expect a stock or a commodity to pass, at least not easily and no time in the near term. When oil broke through the $82 ceiling, traders began resetting their price estimates for coming months for crude at $90 or even $100 per barrel. This can translate to $3-per-gallon gas.

There may be some hope for motorists. A report from the U.S. Energy Information Administration on Wednesday surprised traders by saying that supplies of crude oil and gasoline in storage are actually growing. The amount of gas and crude pumped into storage last week was three times greater than forecasters predicted, the government said. If the usual supply-and-demand relationship kicks back in, gas prices may stabilize.

[chickenona]

The price of gas is what really drove the economy into the shitter this time. When we went up to four a gallon after Katrina, it got people acclimated to higher gas prices. So now instead of getting pissed when they see something like this, everyone's just grateful that at least it's not four a gallon again.

[BigDrewHalenite]

Not to mention that there are SOOOOO many factors in the production and sales of gasoline that are out of the control of any one person or even any one organization that criticizing the president for NOT controlling the price shows extreme ignorance of how it all works.

[chickenona]

Most of the time there doesn't have to even be a real shortage or crisis for the price of oil to go up - the simple ANTICIPATION of trouble forces a market panic, driving the price up.

[JakeYonkel]

Not to mention that there are SOOOOO many factors in the production and sales of gasoline that are out of the control of any one person or even any one organization that criticizing the president for NOT controlling the price shows extreme ignorance of how it all works.

So pass a bill and throw a shit ton of money at the oil producers that effectively sets the price of gas for consumers, with the rest being subsidized by the government. Take the small bump in taxes to pay $1.50 a gallon or whatever. Makes sense to me.

Once again though... Bush catered to the upper class, Obama is bending over for the low class. We, the middle class, are getting fucked at both ends.

[Ugmo]

Throw even more money at the oil producers?

Fuck the oil producers. We should be throwing a shit ton of money at someone who can come up with an alternative to gas-fueled vehicles.

[JakeYonkel]

Fine, or drill in Alaska, I don't care. Ten years ago gas was a dollar a gallon and now it's going back to $3 and there's a big problem with that.

[Ugmo]

The problem is having an entire economy dependent on fossil fuels.

[pooldude]

Ten years ago gas was a dollar a gallon and now it's going back to $3 and there's a big problem with that.

In 2000 the average price for a gal of gas in the US was about $1.60, & higher in places like CA.

http://www.eia.doe.gov/emeu/international/gas1.html

Here in Kern County, which is 1 of the most conservative sections of the state, the local newspaper & talk radio stations actually cheer when the price of oil goes up!

Kern County produces about 60% of CA oil output, & 10% of the entire US.

The local Republican hierarchy prays for gas & oil to go higher, as they see it as an improvement in their economy.

I'd be willing to bet there are areas of Texas & Oklahoma that feel the same way about higher oil prices being a good thing.

I guess it all depends on what side of the fence you pitched your tent.

Unfortunately for me, I don't own any oil wells.

[JakeYonkel]

When I got my license in 2000 it was 98 cents in New Jersey, so I was going by that. But I'm sure it's proportionate either way.

[bane]

Ten years ago gas was a dollar a gallon and now it's going back to $3 and there's a big problem with that.

In 2000 the average price for a gal of gas in the US was about $1.60, & higher in places like CA.

http://www.eia.doe.gov/emeu/international/gas1.html

Here in Kern County, which is 1 of the most conservative sections of the state, the local newspaper & talk radio stations actually cheer when the price of oil goes up!

Kern County produces about 60% of CA oil output, & 10% of the entire US.

The local Republican hierarchy prays for gas & oil to go higher, as they see it as an improvement in their economy.

I'd be willing to bet there are areas of Texas & Oklahoma that feel the same way about higher oil prices being a good thing.

I guess it all depends on what side of the fence you pitched your tent.

Unfortunately for me, I don't own any oil wells.

You don't have to own oil wells to feel the positive effects of higher gas prices. It's good for the economy in some places, like my state for example. With gas up, maybe Exxon will stop laying people off.

[pooldude]

With gas up, maybe Exxon will stop laying people off.

They'll put more people back to work, so we can afford to pay more for their product.

Sounds like a Win / Win...for Exxon.

Obviously, everything is inter-dependent, & there's no easy answer or clear cut choice, which was what poster BigDrewHalenite was pointing out in response to Jake's initial post calling for Mr Obama to "fix".

Don't forget, it was Mr Bush & Mr Cheney's well documented big oil connections that made many people, including myself, unhappy with gas & oil consumer prices over the last 8 years.

But once again...there are no easy answers, beyond us in the middle to bite the bullet & continue working hard to get ahead.

[VinnieKulick]

The solution is simple. BUILD MORE REFINERIES and DRILL WHERE WE KNOW OIL IS.

[bane]

With gas up, maybe Exxon will stop laying people off.

They'll put more people back to work, so we can afford to pay more for their product.

Sounds like a Win / Win...for Exxon.

Obviously, everything is inter-dependent, & there's no easy answer or clear cut choice, which was what poster BigDrewHalenite was pointing out in response to Jake's initial post calling for Mr Obama to "fix".

Don't forget, it was Mr Bush & Mr Cheney's well documented big oil connections that made many people, including myself, unhappy with gas & oil consumer prices over the last 8 years.

But once again...there are no easy answers, beyond us in the middle to bite the bullet & continue working hard to get ahead.

Sure. I just happen to live in a place that's economy is strongly derived from oil and gas. The recession took a lot longer to hit us than it did the rest of the country because oil was still so high. I know it's selfish, but for my personal situation, 3 dollar gas is a good thing.

[JakeYonkel]

Remember that "cash for clunkers" program you ridiculed? The one where people traded their SUVs for more fuel efficient vehicles? That was designed to reduce demand for gas and the price at the pump. So he has done something to control prices and you ridiculed it.

It was a poor plan and did jack shit but take functional cars off the road, cars that could have been sold cheap to the poor people that you Dems love so much.

LMFAO @ "bending over for the low class." You're part of that low class. You're about as "middle class" as Ralph Kramden.

LOL. C'mon guys, make up your mind. Either I'm some big shot lottery winner that should have no say in politics because I don't live in your world, or I'm low class. Either way you're wrong but it's still funny.

[VinnieKulick]

Cash for clunkers was a way to get more US automakers cars purchased. However, this was only really pushed so that GM and Chrysler could make some cash. With the UAW getting 40% of GM in the bailout, it's no surprise that this program was pushed through.

Its funny that Ford, the only company that didn't take bailout money, is the only one that made money off the program.

And, let me see if I got this straight...... we were having a "financial crisis" because people bought houses they couldn't afford, and part of the remedy was to get them to buy CARS that they couldn't afford? Makes perfect sense!

[bane]

I don't understand the ire against cash for clunkers. It was a resounding success. It kept dealerships across the country in business when many of them were on the verge of bankruptcy and got some crappy old pollution makers off the road. Other than the fact that it cost us some money, what's not to like?

[VinnieKulick]

I don't understand the ire against cash for clunkers. It was a resounding success.

If you were the UAW, or happened to get $4000 for a cap you couldn't sell for $100 then yes, it was a success.
BTW:
http://online.wsj.com/article/SB1000142 ... 40786.html

It kept dealerships across the country in business when many of them were on the verge of bankruptcy

REALLY?
http://www.huffingtonpost.com/2009/05/1 ... 04031.html

http://www.edmunds.com/industry-car-new ... osing.html

and got some crappy old pollution makers off the road. Other than the fact that it cost us some money, what's not to like?

Well, the fact that it DID cost 'us' billions is what's not to like. And, who got those billions? Companies that have shown no real ability to run themselves. (other than Ford, who didn't take the bailout money, and were the only one of the three US automakers who were in the top ten in cars sold during the CFC debacle.)

[Ugmo]

The solution is simple. BUILD MORE REFINERIES and DRILL WHERE WE KNOW OIL IS.

What a great solution. That should allow us to put off finding an alternative to oil for another decade or two, at which point we'll be right back in the same boat.

[tin00can]

Again, what exactly can a president do to lower oil prices? And yes, I said the same thing when Bush was president. The president has fuck all to do with oil prices, but some people sure seem to think he does.

[WhiteHouseSubsAC]

The solution is simple. BUILD MORE REFINERIES and DRILL WHERE WE KNOW OIL IS.

What a great solution. That should allow us to put off finding an alternative to oil for another decade or two, at which point we'll be right back in the same boat.

And man will it fuck the whales over, Ug. THINK OF THE WHALES, MAN!!

[Ugmo]

And man will it fuck the whales over, Ug. THINK OF THE WHALES, MAN!!

I'm trying to think of a clever response, but I'm drawing a blank. And I don't want to have to draw from the Nickelback well again...

[pooldude]

Any guesses on what the price of a gallon of gas will be here shortly if Israel attacks Iranian nuclear facilities?

Any guesses on how fast YourMomma will start a new thread blaming those increases on Mr Obama?

Of course he could always order preemptive nuclear strikes now, to keep the price of gas low in the future.

Nothin' like a quick & easy solution!

[VinnieKulick]

The solution is simple. BUILD MORE REFINERIES and DRILL WHERE WE KNOW OIL IS.

What a great solution. That should allow us to put off finding an alternative to oil for another decade or two, at which point we'll be right back in the same boat.

Do you really think that America can build and sell some kind of "alternative energy vehicle" that will be affordable for the majority of the USA and actually make people WANT to buy them? And you think they'd do this BEFORE we'd be able to build more refineries and drill for oil within our borders?

Why is it you think BOTH can't take place?

[Ugmo]

Do you really think that America can build and sell some kind of "alternative energy vehicle" that will be affordable for the majority of the USA and actually make people WANT to buy them? And you think they'd do this BEFORE we'd be able to build more refineries and drill for oil within our borders?

Why is it you think BOTH can't take place?

Sure America can build and sell an affordable alternative energy vehicle that people will want to buy. I don't have much doubt about that.

Do I think they WOULD do it before building more refineries and drilling in Alaska or wherever? No, probably not. I think the entire world is going to wait until there isn't a drop of oil left before anyone seriously considers what the next option is. That's human nature I'm afraid.

[bane]

I think it's human nature as well, but I don't think procrastination is the issue. Follow the money and you get to the bottom of that little question.

[VinnieKulick]

Sure America can build and sell an affordable alternative energy vehicle that people will want to buy. I don't have much doubt about that.

When why hasn't anybody done it?

Do I think they WOULD do it before building more refineries and drilling in Alaska or wherever? No, probably not. I think the entire world is going to wait until there isn't a drop of oil left before anyone seriously considers what the next option is. That's human nature I'm afraid.

Human nature? I think it would be more human nature to make money, which developing a nice affordable alternative energy vehicle would do.

I'd gladly drive an electric (or whatever) car, if I never had to worry about things like the battery running out or something like that. I think most people would buy a vehicle if they'd never have to stop at the pump again. But, until that happens, we need to do what we can to help the economy domestically.

[Ugmo]

Sure America can build and sell an affordable alternative energy vehicle that people will want to buy. I don't have much doubt about that.

When why hasn't anybody done it?

Because it's going to take some kind of incentives on the part of the government for a company to really do that kind of R&D in earnest, and so far the government has been more interested in bending over backwards to an incredibly powerful oil industry - which doesn't want that kind of competition.

[bane]

Human nature? I think it would be more human nature to make money, which developing a nice affordable alternative energy vehicle would do.

Some very powerful people stand to lose a great deal of money on something like that. There's money in green tech, sure, but until the current monopolies can find a way to make it exclusively profittable to them, they'll do everything in their power to stop it, just like they've been doing for the past 30 years.

[pooldude]

The only mistake Obama could make in that situation is not opening up the oil reserves for public consumption when this happens. I doubt I'd be the first one to point that out here if gas prices were skyrocketing and nothing was being done about it.

I'm reminded of that Jeff Beck song Day in the House:

"Nothing is Being Done!"