Fueled by Petroleum!

Just how far can we be pushed this time with the extreme prices that are being created by crude oil prices?

I hear nothing out of Washington leadership--except some inept congressional hearings--about what is to be done.

Is all this like the military battles of history where an enemy is allowed to forge ahead past his ability to defend himself, and then we plunge?

There is no way that we are going to sit around and allow so many products made of oil to become costly beyond any reason and do nothing about it!

I can not believe that our government has become inept in such a scenario. It scares me greatly as to what is next! Doesn't scare me that we won't act, but that our actions will be wrong---again!

All problems can not be solved by bombing the heck out of someplace--killing many of its citizens, then try to build the place back, as we are failing to do in Iraq.
What else will the current government here do though, they have no more armies? The UN certainly won't pop-up and send troops! Nor will any other country.

China is a major player this time in the oil business and they never have been afraid of us. We couldn't dent the surface doing any bombing there! They want the oil they now need since they are making everything nearly that is for sale, except oil. And I doubt that they would simply do without it.

We have put one too many oil men one too many times into the White House!

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JeffC's picture
Submitted by JeffC on Thu, 05/22/2008 - 11:20am.

Since 1980, almost half of U.S. refineries have closed, from a high of 324 in 1981 to 148 as of 2005. We are now actually refining over 1.5 million barrels a day less than we were in 1981.

The Bush administration, in a report to Congress from the Energy Information Administration (the information wing of the Energy Department), said that if Congress gave the go-ahead to pump oil from Alaska’s Arctic National Wildlife Refuge, the crude could begin flowing by 2013 and reach a peak of 876,000 barrels a day by 2025. This is the rosiest scenario ever produced. The report said that because of production and transportation cost, peak oil production from ANWR would lower oil prices by less than 50 cents a barrel.

Notwithstanding the ban in ANWR, the Interior Department is considering 668 lease applications for new offshore oil development, from the Gulf of Alaska, to the Copper River Delta to Cook Inlet to Bristol Bay, to the Chukchi Sea up by Point Hope, to the Beaufort Sea; virtually the entire coast of Alaska.

The U.S. imports about 12 million barrels a day, consumes about 20 million barrels a day, and the worldwide demand is 85 million barrels a day.

At one time, the US had an energy policy.

Carter Tried To Stop Bush's Energy Disasters - 28 Years Ago

Carter's energy policies look good

Even the Heritage Foundation found merit in the programs:

Carter's Energy Program

The EnergyBulletin analyzed the programs 25 years later, and the implications of dismantling many of them by Ronald Reagan:

Was Jimmy Carter right?

Gasoline is going to be close to $5 a gallon by election day.

Submitted by PTC Avenger on Wed, 05/21/2008 - 10:03pm.

Gas prices have little to do with market dynamics like supply and demand and much more to do with the steep dollar decline. It appears that Bernanke is creating a sort of commodity bubble to help his Wall Street buddies out (and I mean big time help). We're trying to inflate our way out of this economic crisis, though this time it won't work. The future is actually very, very bleak for us.

NUK_1's picture
Submitted by NUK_1 on Thu, 05/22/2008 - 5:01am.

Supply and demand is a huge factor when the supply has been declining and demand is rapidly rising. The fact is that refineries haven't been built and the capacity of existing operations have declined(Iraq, Nigeria, Venezuela, Russia). Add that with unsurpassed demand and it's not surprising that oil prices have surged over $130.

Market speculation is a pretty small factor. The declining strength of the dollar is a bigger factor, but other non-dollar based countries are seeing the same surge in prices. It is just that some other countries subsidize gasoline to keep the prices artificially lower.

A barrel of oil that is $130 costs the same whether the US buys it or China.

Submitted by PTC Avenger on Thu, 05/22/2008 - 6:38am.

Another person who watches Neil Cavuto and reads the AJC Business section and thinks he knows what he's talking about. I'll educate you later this evening after work.

NUK_1's picture
Submitted by NUK_1 on Thu, 05/22/2008 - 8:11am.

Whatever. Understanding macroeconomics is the antithesis of anything on television "news" or what the extremely short-sighted Congress thinks.

There is no disputing decreased production and increased demand, and it's been going on for several years with the gap widening. Anyone who didn't see this coming is a total fool. Most US politicians knew it was coming but sure didn't want to be be the ones to say it.

I haven't seen anyone even make a half-hearted attempt to deny that reality. The decline of the US dollar is certainly a factor, but not anything approaching the basic law of supply and demand. Now, if China for some reason decided all of a suddenly to buy oil using the Euro instead of US dollars, then there would definitely be something to talk about as it would wreck the US. Of course, it would really hurt the Chinese also since they are own a substantial amount of dollars and paper .

Cyclist's picture
Submitted by Cyclist on Thu, 05/22/2008 - 6:20am.

One thing to watch for is if the demand reaches the point where spot shortages start to occur. Luckily, so far, we only have high prices to contend with. If we have spot shortages in the US, the playing field changes. I think most of us can remember the 1974 and 1979 shortages/gas lines and the economic recession periods that were quick to follow.

I sure hope there are no hurricanes in the gulf this year.
Caution - The Surgeon General has determined that constant blogging is an addiction that can cause a sedentary life style.

Silence Dogood's picture
Submitted by Silence Dogood on Wed, 05/21/2008 - 8:56pm.

What are your thoughts about Mr. Obama and Mrs. Clinton demanding that OPEC pump more oil into the market to lower the cost of oil for you and I?

Additionally, Why aren't they demanding that Exxon, BP, Conoco, Chevron and others drill more and produce more oil in this country until such a time that technology allows us to reduce our need for as much oil.

Why aren't Mr. Obama, Mrs. Clinton, Congress and the Senate demanding that we open up the multitudes of untapped reserves we have in this country? Why the inconsistency?

Submitted by sageadvice on Thu, 05/22/2008 - 4:18am.

Bush made the trip to hold the King's hand in S.A., and beg for oil!!!

Our oil companies aren't going to pay for more refineries when it is clear we must stop using so much oil!

Who want more stinkin, polluting wells all over the place? Won't solve the problem anyway---the more we pump and refine the more we will use.

Truth is Bush has let the oil crisis go way too far. He thought doing away with Saddam was the answer, and he was dead wrong!

Poor leadership!

Silence Dogood's picture
Submitted by Silence Dogood on Wed, 05/21/2008 - 8:49pm.

What do you think will happen after Mr. Obama gets elected and we pull out Iraq, allowing the Al Qaeda types to take over control over what is perhaps a larger oil reserve than Saudi Arabia. It appears that suddenly it might not be in our interest to abandon Iraq after all.

Submitted by sageadvice on Wed, 05/21/2008 - 8:55pm.

Al Qaeda types? Don't know who they are. Most ther now are Suunis and Moonies who fight one tuther! The Qaeds are in indonesia and other places now where we ain't!
Why don't we just let em keep their stupid oil in Saudi Rabia? Then see whut happens! China can't buy hit all! Amyway, Obama won't be thar anyway and if he wuz, nothin would happen much.

Silence Dogood's picture
Submitted by Silence Dogood on Wed, 05/21/2008 - 8:59pm.

Aren't the Suunis and Moonies and the Qaeds in indonesia all the same? Sort of like Democrats and Republicans? Different names - same big government agendas?

Submitted by sageadvice on Thu, 05/22/2008 - 6:06am.

No, afraid not. Very few democrats or republicans here are Muslims!

The Muslim governments aren't very big. What ever the Grand PoohPaa of
Muslims says is law.
Local Ass't PooPaa's do the rest!

The Moonies are really not Muslims, I don't think! Old man "Moon" is still alive in Korea, I think.

Things in Muslim countries are run by religion (one religion) and not by votes of the peons.

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