Let's see, let's start with Brent oil at $122 and WTI at $112.
I cannot make this stuff up. The administration is actually going to form a task group to see why gasoline costs so much.
The task force will focus some of its investigation on "the role of traders and speculators" in the oil-price surge, Obama said, and will include several Cabinet department officials, federal regulators and the National Association of Attorneys General.Regional differences in gasoline prices? Well, duh. There are regional differences in prices in just about everything.
In Washington, Holder said he would press ahead with the investigation, even though he did not cite any current evidence of intentional manipulation of oil and gas prices or fraud.
"Based upon our work and research to date, it is evident that there are regional differences in gasoline prices."
no drilling in ANWAR , the permitorium in the gulf , one billion Chinese wanting cars ., and revolution in the mideast. there I saved the government some money , I cringe when I hear tax breaks for oil cos and then you see what the tax rates for various corporations and big bad oil is always at the top . to bring the price of oil down walk or bike to work for 6 mos. jj ps ,my diesel car gets better mileage than airforce one . thanks for all your work ,I truly enjoy it .
ReplyDeleteCompared to the cost of oil in 81 when adjusted for inflation current prices are higher. In 81 we had 7,000 independent oil companies drilling with 4,500 rigs.
ReplyDeleteToday we have 5,000 independent oil companies drilling with less than 2,000 rigs even though our population has grown by 1/3.
We have de-industrialized our economy and defunded the masses with trickle down economics.
We are no longer able to respond to the circumstances we face due to the lack of resources of those suffering.
The number of rigs is irrelevant. Elsewhere in this blog this issue has been discussed. A rig today can do what four to eight rigs in 1981 were doing.
ReplyDeleteWith regard to the Bakken, it used to take 45 days to reach total depth; operators can now reach total depth in 25 days.
Population growth in the US is somewhat irrelevant. It's the population growth in China and India that is the real issue.
But with regard to US population growth and gasoline consumption, compare the gas mileage of the 1981 automobiles with the gas mileage of 2011 automobiles.
The biggest reason we can't expand is spelled out in Ayn Rand's 1957 book, "Atlas Shrugged."
All the aforemention fed. agencies are supposed to be thhe oversight for possible gouging and fraud anyway. Is Holder saying that the Gov't isn't doing it's job and now forms a committee to figure it out. Sounds like Gov't at it's worst.
ReplyDeleteLike you say Bruce- Can't make thiss stuff up.
Thank you for taking taking to comment.
ReplyDeleteThe price of gasoline finally hit the $4.00 mark here in a suburb of Boston ($4.20 for premium).
I think the price of gasoline is not a minor concern for the current administration. I would gladly take a "hit" in my investment portfolio in exchange for oil to go back down to $80 and gasoline to go back below $3.50. The current price of oil and gasoline is not good for the economy.
But the administration can't blame big oil (XOM accounts for 3% of world production; if XOM went away tomorrow, things would be no different). It's all about the weakness of the dollar and state-owned oil companies (Saudi, in particular).
You may not be able to tell it from my stand-alone posts, but I am concerned about the price of oil, but if the administration continues the same policies and programs, the price of oil/gasoline will only get worse.
Again, thank you for taking time to comment.