Democrats and high gas prices

[August]

From Speaker Pelosis own website:

http://www.house.gov/pelosi/press/re...bberstamp.html

Pelosi: ‘With Skyrocketing Gas Prices, Americans Can No Longer Afford Rubber Stamp Congress’ Monday, April 24, 2006
Contact: Brendan Daly/Jennifer Crider, 202-226-7616
Washington, D.C. – House Democratic Leader Nancy Pelosi released the following statement today on President Bush’s, Speaker Hastert’s, and the Republican Congress’ empty rhetoric on gas prices. Key facts on the Majority's failure to address gas prices follows Pelosi’s statement.
With skyrocketing gas prices, it is clear that the American people can no longer afford the Republican Rubber Stamp Congress and its failure to stand up to Republican big oil and gas company cronies. Americans this week are paying $2.91 a gallon on average for regular gasoline – 33 cents higher than last month, and double the price than when President Bush first came to office.
“With record gas prices, record CEO pay packages, and record oil company profits, Speaker Hastert and the Majority Congress continue to give the American people empty rhetoric rather than join Democrats who are working to lower gas prices now.
“Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”

Well it's been two whole years since they took over congress and no plan yet...

[Tchocky]

Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies

Morons.

Well it's been two whole years since they took over congress and no plan yet...

Actually, August, this article is from April 2006. So they hadn't taken over at that stage.

Regarding high gas prices, allow me to quote STEED

Those days are long gone people time to knuckle down to hard cold facts.

[August]

Originally Posted by Tchocky

Morons.

Actually, August, this article is from April 2006. So they hadn't taken over at that stage.

I stand corrected. ALMOST two years...

[Tchocky]

Well, you know what they say about election promises

Although, when you think about it, the rise since OCTober 06 has been so large that they might have been successful, but a 5% drop isn't noticeable against a 20% rise.
I doubt that this is the case.

[August]

Nah there's been no plan. No mention of legislation passed or bills making the rounds. They out and out lied, but what the hey it helped get them elected.

[Skybird]

Gas prices in Germany are three times as high as in the US, so why aren't you guys stop whining.

If somebody thinks that starting offshore drilling at the american coasts again will have a real effect on gas prices, he better thinks twice. It is election propaganda only, and will help nothing substantial with the critical price niveau.

[August]

Originally Posted by Skybird

Gas prices in Germany are three times as high as in the US, so why aren't you guys stop whining.

If somebody thinks that starting offshore drilling at the american coasts again will have a real effect on gas prices, he better thinks twice. It is election propaganda only, and will help nothing substantial with the critical price niveau.

Gee thanks for your highly valued opinion Skybird.

[Tchocky]

Well, I know the Energy Independence Act raised fuel economy standards, which is a roundabout way of reducing real prices. As is improving efficiency in energy usage, means there's more to go around.
Then again, the press release is more a piece of politics than a plan, contradictory in the extreme. Also, the idea that a single government can reduce gas prices is ridicuous.
EDIT - As I look at it, a few of the things in the statement were parts of the ACt not enacted - Link

August, Skybird is correct. The idea of lots of oil just sitting off the coast, waiting to be sucked up, is misleading. Example. Remember that's 50 cents per barrel, not per gallon.

EDIT - Expanding the idea of offshore drilling, Dean Baker has run some numbers. 8 cents per gallon

Either party tells you they'll lower gas prices, they're lying.

[August]

Originally Posted by Tchocky

Well, I know the Energy Independence Act raised fuel economy standards, which is a roundabout way of reducing real prices. As is improving efficiency in energy usage, means there's more to go around.
Then again, the press release is more a piece of politics than a plan, contradictory in the extreme. Also, the idea that a single government can reduce gas prices is ridicuous.

August, Skybird is correct. The idea of lots of oil just sitting off the coast, waiting to be sucked up, is misleading. Example. Remember that's 50 cents per barrel, not per gallon.

Skybird isn't addressing the thread topic. I'm surprised he even replied to this thread seeing as he has me on ignore. but whatever, cost isn't everything. How about reducing or even eliminating our dependence on foreign oil, or is that not important any more?

Either party tells you they'll lower gas prices, they're lying.

Maybe, maybe not. Increasing supply ought to bring down prices if my economics teacher knew what he was talking about. In any case we'd know for sure by now if we'd been able to drill for our own oil back in the late 1990's.

[XabbaRus]

The price isn't really due to supply, more to speculation.

At the supply meets demand, exceeds it in fact. I doubt if the Saudis bump production up again it will have any affect.

My theory is that all these banks that used to lend each other money and stick it in property have now been sticking it in oil and the price is going up.

[August]

Originally Posted by XabbaRus

The price isn't really due to supply, more to speculation.

At the supply meets demand, exceeds it in fact. I doubt if the Saudis bump production up again it will have any affect.

My theory is that all these banks that used to lend each other money and stick it in property have now been sticking it in oil and the price is going up.

You might be right XabbaRus.

[Frame57]

I have heard these debates before. Like when the postage rates go up. Someone always compares the prices with other countries. America should not have to be compared with other countries and their economies. IMO it is not the oil companies that are at fault here. They get 9 cents or so out of every dollar. Who in hell gets the rest of that money? That is where the problem lies. Our own government is the problem and always will be until we the people have the brass to get rid of the corruption that pervades both parties. The pursuit of life, liberty and happiness cannot be acheived when greed and corruption is allowed in an office that is supposed to serve the people. Our Constitution itself allows for remedy of just such a situation, the question is, how do we act on it?

[Tchocky]

Hmm, speculation doesn't look too likely.

If the price is artificially above the logical point where quantity demanded meets quantity supplied, then we'd see excess supply. In other words, people holding onto oil in order to sell it later - which is, in essence, speculation. Believing that the hold value of oil exceeds it's immediate sale value. Therefore we'd be seeing lots of oil-holding, inventories rising sharply. But that has not been observed.

The unfortunate truth is that oil production has been relatively flat for the last 3-5 years, whereas demand has skyrocketed. This has happened for all raw materials, due to increased economic appetites in places other than the developed, price-sensitive West. Iron ore is not traded on an exchange, so there is no easy place for speculation to occur like ther is in crude oil. However, over the past year the price of iron ore has jumped 75-95% due to increased demand. This is similiar to what has been happening with oil. Excess capacity has declined rather sharply in oil-producing countries, Saudi Arabia in particular had over-estimated their reserves. This increases the risk premium on oil production, given that there is a smaller margin of safety and a lot of oil is produced in politically unstable countries.

Not to forget the unfortunate slide of the US dollar in the last several years. A major part of the oil price rise can be attributed to this, given that US dollars are the agreed upon pricing currency for crude, although this looks to be changing, albeit slowly.

[SUBMAN1]

Hardly. Global demand has increased about 1.9% per year. That doesn't equate to the price of $147 a barrel as it stands now, sliding dollar or not!

This is market manipulation. Some people need to be prosecuted.

-S

[August]

I'd think that at least part of the price increases for iron ore has to be due to increased fuel costs for recovery and transportation.