Tag Archives: gas prices

Gas Prices Drop Steadily Just in Time for Holiday Travel

Many families across America are feeling a little budgetary relief just in time for Christmas, as the price of gasoline has been steadily dropping for about the last 5-1/2 months, with the exception of a spike during the week of Thanksgiving, which has lead some watchdogs to express opinions of price gouging during the busiest travel weekend of the year. IN May,2011 gasoline hit a high of $3.94 a gallon. (national average according to AAA’s daily fuel gauge report.) Currently the national average for the price of regular gasoline across America is $3.27. A month ago gasoline was averaging #3.48 as compared to $2.97 a year ago as we can see in the following AAA graph:

As gasoline prices are linked directly to the price of crude, we can expect gasoline prices to rise steadily in the coming weeks. Crude is currently hovering around $100 dollars a barrel and the price for the next year is projected to run $115 dollars a barrel, according to oil-price.net. Will we ever see the price of gasoline drop under $2.00 a gallon again? Only if we start to extract the massive deposits we have right here in the good ole USA, and thereby keeping us from having to buy more oil from OPEC and other countries. For now, the lower gasoline prices will help struggling families stretch those holiday dollars just a little further, which is a welcome respite during the current economic recession.

Food Futures Slide Monday

During the mini-crash of August 2011, stories of a market slide and gold going through the roof were prevalent. What no one seemed to be talking about is food futures.

September wheat dropped twenty two and a half cents per bushel to $6.57 and corn dropped 0.17 to $6.86 a bushel. Oats and soybeans also took significant drops as the entire set of major grain futures took a nosedive.

Beef and pork futures also slid lower, but why?

Petroleum products dear friend – that’s why. Across the board Oil, Natural Gas, gasoline, all of them dropped. Usually when commodities sink it’s due to a strengthening dollar. Not this time.

If all commodities futures were falling, a weakening greenback might be to blame, but gold is having no trouble reaching new highs. Closing at 1760+ on Monday, gold is showing all the strength of a temporary safe refuge for money that investors can’t put elsewhere.

Food, grain, oil and fuel are falling because the speculators have seen the same reports the rest of the universe has – the second recession is here. Upon expected dwindling demand, prices will fall.

Gold is NOT seeing anything close to a slowing demand curve. It is precisely where many are moving their money in anticipation of what will almost certainly come next – another round of money printing.

While food may drop short-term, Americans are in for more quantitative easing (a.k.a. federal reserve printing money) which will further devalue the dollar and require more greenbacks to purchase the very goods that are currently on a downward price trajectory.

This is a temporary descending blip. Food and energy will become more expensive as the dollar becomes diluted by further irresponsible printing and that’s what all those gold buyers already seem to know.

Breitling Oil and Gas Announces Exploration in Louisiana

IRVING, Texas, June 14, 2011 — Breitling Oil and Gas Corporation, an independent exploration and production company based in Irving, Texas, announced that it has spud the Breitling-Sandy Run #1 prospect in St. Helena Parish, Louisiana on June 12, 2011.

The Breitling-Sandy Run #1 is a 3800′ well and is targeting Miocene Sands which showed seismic amplitude anomalies on a recently acquired 3D data set.

The Sandy Run Prospect is regionally located on the Gulf Coastal Plain with structural dip predominantly in a south to southwest direction. Sandy Run is on strike with numerous Frio gas fields found to the northwest in Amite Co., Mississippi. These Frio fields were found using seismic that identified the reservoirs by a similar amplitude anomaly.

Breitling Oil and Gas expects to recover reserves of 6 to 9 BCF of natural gas.

Management anticipates the well will reach total depth in about 7 days. Well completion and testing should begin during the first week of July.

Breitling Oil and Gas CEO Chris Faulkner stated, “I am pretty bullish on natural gas pricing over the next 18 months so it’s the perfect time to drill the Breitling Sandy Run.” Faulkner added, “We have great well control and 3D over the prospect and the reserves could be sizeable.”

An additional 3 wells can be drilled if commercial production is found in the initial test well. Breitling has current oil and gas exploration projects all over the United States.

For more information on this and other activities of the Company, see the Breitling Oil and Gas website at http://www.breitlingoilandgas.com.

Breitling has current oil and gas exploration projects all over the United States.

 

TrendWatch: How Hurricane Season Can Lead to Gas Crisis

ATLANTA, May 24, 2011 — When Hurricane Katrina shut down the majority of oil      refining capabilities in the Gulf of Mexico in 2005, prices skyrocketed overnight and incited a rush on gasoline that led to a nationwide, weeks-long gas shortage. With prices currently nearing post-Katrina levels on their own, this hurricane season could prove even more damaging to both businesses and consumers.

In a recent look at the 2011 hurricane season’s potential effects on fuel prices, AccuWeather.com detailed how devastating extreme conditions can be to the nation’s fuel infrastructure. While small disruptions occur relatively frequently during hurricane season, the possibility of a major disruption in the near future may be becoming more likely.

According to AccuWeather’s 2011 Atlantic Hurricane Season Forecast, 2011 is likely to bring a higher than average number of tropical systems than last year, with a higher percentage making direct hits on the U.S. coast. The forecast targets the Texas and Western Louisiana coastlines as areas of greater concern for tropical activity, putting a large percentage of the country’s refineries and offshore platforms in the path of these damaging storms.

When a hurricane causes refineries to close, transportation costs to move oil to other locations are passed down to the consumer. If costs become too high, the platforms themselves must shut down, decreasing supply. This affects fuel prices even more, as well as prices for oil byproducts such as propane, butane and kerosene.

“When an unforeseen event suddenly drives the price of fuel up, smaller businesses have a hard time keeping up,” said Raquel Elie of FleetCards USA TrendWatch. “Owners have to take drastic measures to shore up their expenses, which can mean cutbacks in their budgets or even substantial downsizing. The best safeguard against this is to keep a close eye on prices and always be prepared for a change.”

With the price of fuel in such a volatile state, it is important to guard your fleet against increased costs by managing your fuel spending. Finding cheaper prices on fuel is comforting in the short term, but to effectively manage your expenses, it is important to examine every aspect of your fuel consumption and stop inefficiencies at each step.

 

Senate Dems Attempt to Raise Taxes Again

Senator Harry Reid, (D-NV)  looks like a man deep in thought in the picture to the left here. He must be contemplating how his Democratic party can try to cover their irresponsible deficit spending of the past 5 plus years. Considering Reid, Pelosi, Obama and the rest of the Socialist big-spending fake Democrats have racked up over $6 trillion dollars in debt in that short time period, we can be sure Harry Reid is looking for ways to steal (tax) even more money to try to cover their tracks. Thus the latest scheme to raise taxes to come out of the tax and spend Democrats was announced recently in the form of stopping the tax breaks for the top five oil companies in the U.S. today.

Reid and company want the American people to believe that these oil companies are not paying enough taxes, so they want to tax them more, while disguising it as a way to help calm down Americans who are paying extreme gas prices today.  Reid never lets the facts get in the way of his disguised theft of more tax dollars to try to cover their debt spending, so I will help him out right here and right now with some of those facts.

First of all, Brian Johnson, the senior tax advisor at the American Petroleum Institute sets the record straight on how much taxes oil companies already pay today in the following statement:

Our companies have an average 41% effective U.S. tax rate. That is higher than almost any other company. We pay almost $90 million tax dollars every single day to the federal government, that’s about $37 billion dollars a year.

Harry Reid just might want to research the fact of the high taxes oil companies already pay before he tries to strong-arm them into paying what he terms “their fair share.” Just what do you and your Democratic band of thieves consider a fair share Mr. Reid ? Do you not understand that your blatant money-grab here will do nothing to help people being hit with super high gasoline prices because of your Democrats and green eco-terrorist pals thuggery against our domestic energy production ?  Thanks to Democrats climbing into bed with environmental activist thuggery, our domestic oil production is down from 9 million barrels a day to 5.5 million barrels a day today. See more of the the facts on this here. Get real Harry, your pathetic stage act has gotten stale, and even the most naive of people can see right through your latest money grab.

Need some more facts to ponder Harry, since you sure seem to lack any fact-based reality in your latest money grab aimed at oil companies ? Mr Johnson has a few more for you here:

For ExxonMobil, in the first quarter of 2011, it generated $2.6 billion in earnings in the United States but it also paid $3.1 billion in government taxes, according to its public revenue filings. Between 2005 and 2009, ExxonMobil paid $63 billion in U.S. taxes. Its worldwide taxes in 2009 totaled $81 billion.

Furthermore, according to the American Petroleum Institute, U.S. oil companies paid nearly $150 billion in income taxes to the federal government between 2004 and 2008. The API also reports on its Web site that the oil and gas industry in America supports 9.2 million jobs throughout the economy and contributes 7 percent of total GDP.

That sure looks like the oil companies are paying their fair share to me there, Harry. Here’s another fact you apparently forgot to mention in your latest money grab Harry. If you want to stop the oil company’s $4 billion a year in tax breaks, what about the $11 billion a year in subsidies for the corn ethanol scam that the federal government hands out ? How about the billions of dollars in tax breaks and subsidies given out for solar and wind energy schemes that produce little to nothing today as far as the bang for the taxpayer buck ? Let me add another fact that Harry forgot to tell the people during this latest money grab scheme. The Federal Highway Administration tells us that the government already takes .48 cents worth of taxes out of every single gallon of gasoline sold in the United States. Harry Reid needs lessons in telling the people the truth, and the whole truth. We can best send him that message by kicking him out of the U.S. Senate at the first opportunity, and in the meantime, we can kick out the rest of the tax and spend Democrats and progressive RINOS in 2012.

Democrats Love Affair With Big Oil

Debbie-Wasserman-Shultz-loves-big-oilRecently Debbie Wasserman Shultz (D-Fl), who also happens to be the new head of the DNC, was on Fox News with some astounding revelations that Democrats have really concentrated on oil production recently. This comes from a woman who has voted against every single aspect of domestic oil exploration and development for the past decade in Congress ! While statistics do show that there has been a recent uptick in U.S. oil production in the last two years, the reasons behind this uptick are anything but the results of the Democratic Socialist Party  heaping huge amounts of love upon big oil companies all of a sudden. As a matter of fact, just the opposite is true. Just last month the Democratic message about slowing the skyrocketing prices of gasoline was that it takes ten years to develop new oil deposits and extract them, so it is not their fault we are now seeing four dollar a gallon gasoline. Today the message has been reversed by the DNC, as they try to stake claim for the 2009-2010 slight increase in domestic oil production today. Just watch the lies and misinformation roll off of the tongue of the new DNC propaganda mistress here in the following video.

First of all, U.S. oil production has been in a steady decline since 1986, when we were producing approximately nine million barrels of oil a day, down to approximately five million barrels a day in 2008. This is due to such things like environmental activist groups pushing the green agenda with the help of the very same Democratic party’s support that Wasserman Shultz is now the chair of. Throw in the bi-partisan support of the progressive RINOS of the Republican Party of the past two decades, and we lost a total of four million barrels of domestic oil production a day, for the past twenty-three years! In the above video, take note of Wasserman Shultz’ play on words there when she says the Democrats have worked hard to give us the “recent” increase of oil production. Recent, as in the past two years, when we have increased our oil production from the low point of five million barrels a day up to… five and a half million barrels a day. That still leaves us with a deficit of four and a half million barrels of oil a day from our production levels of 1986. Do the math, and you will find out that it is still a hell of a lot of lost oil production over the past twenty five years! 365 days a years, times 4.4 million barrels of oil, then multiply that total by 25, and you will see just how much we lost out on, and how that forces our massive continued dependency on the very same Foreign oil that Democrats say we need to wean ourselves from, while they continue to push the unrealistic green agenda of today.

Wasserman Shultz voting record shows us just how hard she has worked to increase ( not) our domestic oil production. From Energy and Oil – Florida politics :

  • Voted YES on enforcing limits on CO2 global warming pollution. (Jun 2009)
  • Voted YES on tax credits for renewable electricity, with PAYGO offsets. (Sep
    2008)
  • Voted YES on tax incentives for energy production and conservation. (May
    2008)
  • Voted YES on tax incentives for renewable energy. (Feb 2008)
  • Voted YES on investing in homegrown biofuel. (Aug 2007)
  • Voted YES on criminalizing oil cartels like OPEC. (May 2007)
  • Voted YES on removing oil & gas exploration subsidies. (Jan 2007)
  • Voted YES on keeping moratorium on drilling for oil offshore. (Jun 2006)
  • Voted NO on scheduling permitting for new oil refinieries. (Jun 2006)
  • Voted NO on authorizing construction of new oil refineries. (Oct 2005)
  • Establish greenhouse gas tradeable allowances. (Feb 2005)
  • Rated 100% by the CAF, indicating support for
    energy independence. (Dec 2006)

Since Wasserman-Shultz is the new chair of the DNC, let’s put Senator Bill Nelson’s D-Fl) record up here for all to see also, since they are the two most powerful Florida politicians representing the Socialist Democratic Party up in DC today:

  • We can’t drill, drill, drill our way to oil independence. (Oct 2006)
  • Supports spending resources to stop Global Warming. (Sep 2000)
  • Voted YES on protecting middle-income taxpayers from a national energy tax.
    (Apr 2009)
  • Voted NO on requiring full Senate debate and vote on cap-and-trade. (Apr
    2009)
  • Voted YES on tax incentives for energy production and conservation. (Jun
    2008)
  • Voted YES on addressing CO2 emissions without considering India & China.
    (May 2008)
  • Voted YES on removing oil & gas exploration subsidies. (Jun 2007)
  • Voted YES on making oil-producing and exporting cartels illegal. (Jun 2007)
  • Voted YES on factoring global warming into federal project planning. (May
    2007)
  • Voted YES on disallowing an oil leasing program in Alaska’s ANWR. (Nov 2005)
  • Voted YES on $3.1B for emergency oil assistance for hurricane-hit areas.
    (Oct 2005)
  • Voted YES on reducing oil usage by 40% by 2025 (instead of 5%). (Jun 2005)
  • Voted YES on banning drilling in the Arctic National Wildlife Refuge. (Mar
    2005)
  • Voted YES on Bush Administration Energy Policy. (Jul 2003)
  • Voted YES on targeting 100,000 hydrogen-powered vehicles by 2010. (Jun 2003)
  • Voted YES on removing consideration of drilling ANWR from budget bill. (Mar
    2003)
  • Voted NO on drilling ANWR on national security grounds. (Apr 2002)
  • Voted NO on terminating CAFE standards within 15 months. (Mar 2002)
  • Supports tradable emissions permits for greenhouse gases. (Aug 2000)
  • Include pickup trucks in CAFE; include hybrids in HOV lanes. (Feb 2002)
  • Keep efficient air conditioner rule to conserve energy. (Mar 2004)
  • Establish greenhouse gas tradeable allowances. (Feb 2005)
  • Rated 100% by the CAF, indicating support for
    energy independence. (Dec 2006)
  • Set goal of 25% renewable energy by 2025. (Jan 2007)
  • Let states define stricter-than-federal emission standards. (Jan 2008)

Voting records do not lie folks, but they do expose the truth about just what the Democratic Party is doing as far as developing our own energy production in the United States of America today. Do not take any stock in what the Democrats of today “say” they are doing, as we see it is nothing more than a bunch of misinformation and propaganda right here, but pay more attention to what they do, as in voting to cripple our own energy development. So when you see the new DNC Propaganda Mistress, Wasserman-Shultz telling you about the DNC’s new love affair with big oil and domestic energy production as in the video above, think about the facts in this article the next time you pay to fill up your vehicle with that high-priced gasoline. Also remember Obama and his fake Democratic party in 2012 when it comes time to vote for some real change we can believe in. Just do not expect any change from that $100.00 bill when filling up your gas tank today. Those days are now over, unless we get rid of the green energy Socialists and anti-Capitalists in our government, and soon. That means voting against democrats and pro-gressive RINOS in 2012.

Food and Energy Inflation Is Not Transitory

FORT LEE, N.J., April 28, 2011 /PRNewswire/ — Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the Fed Funds Rate at a record low of 0% to 0.25%, where it has been for an unprecedented 28 months. The U.S. economy is flooded with U.S. dollars and is close to overdosing on excess liquidity. The fact that our financial markets are not falling on the possibility of the Fed not unleashing QE3 immediately at the end of QE2 shows that we could be on the verge of hyperinflation with or without QE3.

The Federal Reserve currently has a mandate of both maintaining price stability and facilitating job creation. However, central banks don’t have the ability to create real employment. If any jobs happen to be created as a result of a central bank’s policies, they are only temporary jobs created due to the errors and distortions of phony asset bubbles. All phony asset bubbles that are fueled by monetary inflation eventually burst, sending unemployment through the roof.

Almost every major central bank besides the Federal Reserve understands the truth about job creation, and has a mandate that focuses solely on keeping price inflation low. The Bank of Japan, Swiss National Bank, Bank of Canada, and Bank of New Zealand, all have mandates that are entirely about low inflation and don’t even mention the creation of jobs or the rate of employment. Bernanke said on Wednesday that, “while it is very, very important for us to try to help the economy create jobs and to support the recovery, I think every central banker understands that keeping inflation low and stable is absolutely essential to a successful economy.”

Bernanke has decided to go down a route that no central banker has ever gone before. Bernanke has literally invented countless ways to create inflation that nobody else has ever thought of. If keeping inflation low was ever Bernanke’s slightest concern, the Fed Funds Rate would currently be north of 5% and the U.S. economy would be in a steep recession. Bernanke has never once thought about keeping inflation low. He has literally implemented every measure he could possibly think of to create as much inflation as possible, while outright lying to the American public and saying that he isn’t printing money and that inflation is under control.

Bernanke would like the public to believe that his policies of expanding the money supply through cheap and easy money will cause the U.S. economy to recover and unemployment to decline back to pre-crisis levels, and that right before price inflation spirals out of control, he can raise interest rates and prevent massive price inflation without disrupting the recovery. Unfortunately, this is impossible because the recovery isn’t real and massive price inflation is already here. Bernanke’s policies may have created 1 million artificial jobs since December of 2009, after 8.75 million jobs were lost in the previous two years, but he did this at the expense of 310 million Americans already seeing double-digit percentage increases in food and energy prices.

Since after the Real Estate bubble burst in late-2008, the primary economic concern of Americans has been finding a stable job in order to make mortgage payments and put food on the table. Under the pressure of Congress, the Fed printed enough money to prevent a much needed recession that would be healthy for the long-term U.S. economy. In its attempt to reinflate the Real Estate bubble, the Fed has been destroying the free market and creating new economic distortions, which caused an artificial bounce in the rate of employment. Unfortunately, when you add together the money the Fed has either printed or committed for bailouts and stimulus programs, over $4 million has been spent for each job created. The Fed would have been better off just crediting the bank accounts of unemployed Americans with the average U.S. income.

When asked about rising gas prices, NIA is very happy that Chairman Bernanke acknowledged that gas prices “have risen quite significantly” and are “creating a great deal of financial hardship for a lot of people”. Bernanke admitted that gas is a “necessity” as “people need to drive to work” for the artificial jobs Bernanke created at a cost of $4 million per job. However, Bernanke seemed to be confused when he said “higher gas prices add to inflation”. The truth is, Bernanke’s zero percent interest rates and quantitative easing are the inflation, and inflation leads to higher gas prices.

Bernanke is directly responsible for gas prices rising back to $3.87 per gallon, yet refuses to admit it. Bernanke placed the blame on the growing global and emerging market economies, and their strong demand for oil. He said that America’s demand for oil is going down, which NIA believes is actually due to the U.S. dollar losing its purchasing power and Americans seeing their standard of living decline. Bernanke said there is nothing that he can do about rising oil and gas prices “without derailing growth entirely”. The truth is, Bernanke already derailed growth entirely when he derailed the free market. It is impossible to see real economic growth when a government and central bank is interfering in every aspect of the economy and impeding the free market in every possible way. All nominal GDP growth in the U.S., along with growth in retail sales, is solely due to inflation. Even when the government adjusts GDP and retail sales growth to the rate of inflation, it is based off of the consumer price index, which NIA believes is currently understating price inflation by approximately 4%.

Although Bernanke denies he has the ability to reduce gas prices, he claims he can prevent “gas prices from passing into other prices and wages throughout the economy and creating a broader inflation which will be much more difficult to extinguish.” Bernanke obviously doesn’t want Americans to see higher wages because he believes it could lead to broader inflation, but NIA believes rising wages would be a good thing. Inflation hurts Americans most when the rate of inflation is far outpacing wage increases. The fact is, the U.S. is already experiencing broad inflation even without wage increases.

Bernanke’s brand new favorite word as of late seems to be “transitory”, which he used about a dozen times during his press conference. Despite what Bernanke says, NIA strongly believes that rising food and gas prices are not transitory. Bernanke likes the word “transitory” because he can use it to try and pretend that rising food and gas prices are only just a temporary phenomenon and that their current high levels aren’t here to stay. Many Americans can remember the day 40 years ago when a can of Coca-Cola cost a dime and a Hershey chocolate bar cost a nickel, with a gallon of gas back then costing only thirty-five cents. Have rising food and gas prices over the past four decades been transitory?

NIA first predicted two years ago in its documentary ‘Hyperinflation Nation’, that rising food and gas prices would soon become the primary concern of all American citizens as a result of the Fed’s dangerous and destructive monetary policies. Bernanke back then claimed that inflation would not be a problem and said that the U.S. risked deflation. If Bernanke has been so wrong about the inflation that Americans are faced with today, NIA doesn’t see how anybody can possibly believe that Bernanke will be right and that current high food and gas prices aren’t here to stay. In our opinion, the food and gas price inflation that Americans have experienced over the past 40 years, is likely to occur all over again during the next 4 years. NIA believes that 4 years from now, Americans will look back at the good old days of having cheap $4 a gallon gas.

The last thing the U.S. government wants is for the American public to realize that Bernanke is responsible for rising food and gas prices. If the public demanded to end the Federal Reserve, the government will no longer be able to spend recklessly knowing that the Fed will be there to monetize their deficit spending. In an attempt to make up excuses for rising gas prices and deflect attention away from the Fed, Congress has been pressuring the U.S. Attorney General to investigate the matter. Attorney General Eric Holder just announced the formation of the Oil & Gas Price Fraud Working Group. The stated purpose of this working group is to monitor the oil and gas markets for potential violations of criminal or civil laws to safeguard against unlawful consumer harm.

NIA considers this to be complete insanity. Any government interference in the oil markets will only drive oil prices up even higher. Oil prices are rising solely do to supply and demand. Demand is going through the roof because the Federal Reserve is creating a lot of inflation, and inflation always gravitates to the goods that Americans need the most to live and survive. Oil supplies are falling because President Obama has ordered U.S. troops to occupy Libya. In the past we at least made up excuses to invade countries like Iraq over oil by claiming they had weapons of mass destruction. Today, the U.S. government doesn’t even bother. Obama campaigned as an anti-war President, saying he would bring our troops home from the middle-east. Instead, he has increased our middle-east troop levels, and the sheep who voted for him are showing absolutely no signs of outrage.

visit: http://inflation.us for more information

Mr. President, I Have The Silver Bullet!

Unless you live under a rock you have probably realized that the majority of President Obama’s rhetoric is nothing but his favorite catch phrases.

The Global Language Monitor  keeps track of how many times certain phrases are spoken. One thing that they monitor is Mr. Obama’s catch phrases.

We’ve all heard them, if we’ve heard the man speak at all.

In this article on The Global Language Monitor they have totaled Obama’s top five catch phrases, tallied since the day he took office. You will see their total in parenthesis below, as of March 25, 2011.

There’s the ever famous, “Make no mistake.” (2,924 times)

There’s my “favorite”- “Let me be clear!” (1,066 times)

And let’s not forget, “Win the future.” (1,861 times), 

Or how about, “Here’s the deal.” (1,450 times)

And then there’s, “It will not be easy.” (1,059 times).

Now there’s a new phrase that The Global Language Monitor will have to keep up with spewing from President Obama’s mouth.

“There’s no silver bullet.”

President Obama and his Press Secretary, Jay Carney, have both been spouting this phrase over the last few days.

I searched the website at The Global Language Monitor and could not find that they have started counting this among his popular catch phrases. However, other people are taking notice. Reuters has a blog post in observance of this new catch phrase.

I have to disagree with Mr. Obama. There IS a silver bullet that will bring down gas prices IMMEDIATELY! I invite him to use this silver bullet! In fact, I will make an exception for one of my rules to never beg for anything. Mr. Obama, I beg of you to PLEASE use the silver bullet that is so obvious!

WE MUST DRILL, BABY, DRILL!!!

There are just no two ways around this. We absolutely MUST drill for our own oil!

All it would take is for anyone with any semblance of seriousness to come out and say that we are going to drill our own oil and the speculators would go wild! They would not know what hit them! There would be scrambling on Wall Street like we’ve never seen before!
And yet, no one, not even the Republicans, are willing to step out boldly and challenge what I see as nothing less than treasonous acts with Obama’s moratorium on off-shore drilling, all the while applauding Brazil for their drilling. In fact, in his remarks at the CEO Business Summit in Brasilia, Brazil, Obama tells Brazilians that The United States of America will finance their offshore oil drilling, then we will be their best customer!

“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers. At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy.”

This is treason if I’ve ever heard it!

So where are the Republicans? Silent, as usual!

Mr. Trump, you seem to be the ONLY person willing to go out on a limb and say what the American people are saying. Your boldness and consistency is one of the two main reasons why we finally have a birth certificate- as fraud as it probably is! (I believe the other main reason is the book coming out on May 11, 2011 by Jerome Corsi,  Where’s The Birth Certificate? The Case that Barack Obama is not Eligible to be President”)

Mr. Trump, will YOU be bold enough to press this issue? We DO have the silver bullet to bring down gas prices IMMEDIATELY! Will you use it? I know the President in the White House currently will not!

E.P.A. = Extreme Political Activism

On April 25, 2011 Shell Oil Corporation announced it was dropping it’s efforts to drill for oil in the Arctic Sea off the northern coast of Alaska. This decision comes after 5 long years of jumping through the governmental hoops of massive regulations, careful, tedious exploration and the expense of investing over 4 billion dollars in the project. So just what caused Shell to accept the massive monetary losses and drop the project? Was it due to the fact that they couldn’t find enough oil there to make a profit? Apparently that is not the case, as there are an estimated 27 billion barrels of oil just sitting there waiting for extraction. Could Shell’s reason for dropping a 4 billion dollar project be that there is no demand for all of that oil in the U.S. today? With current gasoline prices over $4.00 a gallon across the nation that hardly seems like a valid reason to not extract that domestic oil in the Arctic Sea. Supply and demand are what drive gasoline prices, no matter who tells you anything different.

So why is Shell being forced to accept 4 billion dollars in losses in pulling out it’s drilling operations in the Arctic Sea near Alaska? The answer to that question can be found in 3 simple little letters: EPA , as in the infamous Environmental Protection Agency. Just do not try to get an exact answer from Obama appointee Lisa Jackson, the current EPA administrator, as she refuses to answer phone calls or emails to explain this ludicrous decision by her four radical Democrats on the board that denied an “air quality permit” for Shell to drill in the region. So much for accountability in our government once again from an Obama appointee. They have a pattern of making radical decisions, and then refusing to explain them to the very people who pay their salaries. I offer this article from FoxNews as proof  of just who is behind this ludicrous decision, and how they refuse to tell the people why they have made such a blatantly extreme decision.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling. (emphasis mine)

After 5 years and 4 billion dollars, the Democratic extremists on a panel for the EPA have denied the extraction of 27 billion barrels of our very own oil for… wait for it…the fact that ice-breaking vessels burn fuel, and therefor emit pollution. Does this mean that every ship traveling in our waters will be shut down also because they all burn fuel of one type of the other. No, this only means that the evil capitalists at Shell Oil will be stopped from producing millions of dollars of oil for U.S. consumption because they ‘gasp’ did not include the emissions from the ice breaking ships in their total environmental impact figures for air quality control. If crab fishermen in Alaska get stuck in the ice this year, does this mean that the ice breaking ships will be told to let them sit there and freeze to death until Lisa Jackson’s radical EPA board checks their emission statements too? There is no difference there.  These people on this EPA board, including Lisa Jackson are extreme activists, hypocrites and liars, period. From the prior linked Foxnews article we see who they really are:

The EPA did not return repeated calls and e-mails. The Environmental Appeals Board has four members: Edward Reich, Charles Sheehan, Kathie Stein and Anna Wolgast. All are registered Democrats and Kathie Stein was an activist attorney for the Environmental Defense Fund. Members are appointed by the EPA administrator. Alaska’s Republican senator thinks it’s time to make some changes. (emphasis mine)

There you have it, an EPA board which includes an appointed political activist lawyer, all of them Democrats, has denied Shell Oil the rights to extract the oil in the Arctic Sea due solely to the emissions of the ice breaking ships. Will Lisa Jackson and this board write the refund check to Shell oil for the billions of dollars they are out of due to this environmental extremist board’s decision ? No I,m not talking about a check drawn on the taxpayers account here, but instead a personal check drawn on the accounts of these five people who bear responsibility for this nonsense. Maybe that would make them think twice before trying  a politically motivated stunt like this the next time they get asked to make a decision that will affect every single tax paying American citizen.

Steve Maley, over at Redstate.com also makes a very good point about the main agenda behind this decision here, in which he shows us the ultimate motive behind this action, shutting down the Alaska Pipeline:

But the real motivation, the real prize, is the Trans Alaska Pipeline System. The design throughput of the pipe is in excess of 2 million barrels of oil per day; recent throughput is around 600,000 barrels per day. At some limiting rate (I’ve heard 200,000 barrels per day), the cost to operate the line will exceed the value of operating it, and it will be shut down.  Pipeline shut-down is the ultimate goal of the environmental movement. Not just ANWR, but any new development must be stopped so that TAPS dies an early and unnatural death.

Since the U.S. House of Representatives recently voted to de-fund the domestic terrorists over at the EPA, only to be denied by the career politicians in the U.S. Senate, I think we need to remember these Senate tyrants in 2012, and replace them with some people who will actually protect U.S. citizens from this kind of blatant abuse of power.

High Gas Prices Driving America into the Ditch

          While many economists predicted four-dollar-a-gallon gasoline by this summer, anyone filling up their tank this past week has already experienced the pain of four dollar gas pretty much across the nation. Now we dreadfully await the five-dollar-a-gallon-gasoline that many predict is on the way this summer. I watched on TV as a lady in Baltimore was shown pumping $100 worth of gasoline into the gas tank of her Honda Accord. She went on to explain that while it is good to have her tank filled up to go somewhere, she will be left with very little spending money when she gets to her destination. This is a direct reflection on how our economy will suffer under the crushing weight of high gas prices. Not too long ago she could have filled up that very same car for $50.00 and had an extra $50.00 to spend shopping for life’s little extras, such as new curtains, furniture, clothes, cooking utensils, etc.

Pic courtesy of digitaljournal.com.

    Today, due to the high price of gasoline, all the merchants selling those items will be hurt indirectly. The  customer is left with less money to spend in the merchants stores due to high gasoline prices, period. This is often referred to as trickle down economics. High fuel prices also drive up the cost of every single item we need to purchase on a daily basis, such as food, electricity, and anything that has to be transported from point A to point B to be available for purchase. When it costs the transportation companies double the amount of money to fuel up their trucks, ships, airplanes and boats, they simply have to raise their shipping and transportation costs so they can stay in business. That makes the price of every item we purchase increase, which then makes your paycheck able to buy less’ as an end result.  This is the double whammy that is now hitting every single American, whether they realise it yet or not. So what is causing the soaring gasoline prices that we see today? In trying to answer that question, I will try a more common sense approach to exploring the possible causes of  rising gas prices, as we have already heard from all the self-appointed experts about their theories on it.

     First of all, like it or not, politics plays a huge part in gasoline prices. From  over-regulation by our government, to the moratorium on the drilling for oil in the Gulf of Mexico and other huge oil deposits in the U.S., to OPEC’s manipulation of oil reserve numbers, to the upcoming 2012 elections, they all play a part in increasing oil prices. When it comes to the politics of skyrocketing gasoline prices in America, I see another possible reason for why this problem is not being addressed. The current President is a disciple of the Alinsky model of creating a crisis, then using it to further empower themselves over the people . Obama is pushing for a green energy plan that has been proven to be a huge failure across the globe, yet continues to hamper our very own domestic oil production. That puts us at the mercy of OPEC, along with the big oil-producing nations of the middle east  that basically hate America. This also creates a crisis of high gasoline prices that the Alinsky-student Obama could step up and offer a “solution” for.  We probably wouldn’t have four-dollar-a-gallon gasoline today if there hadn’t been a moratoriam on drilling in the Gulf of Mexico, coupled with the expanded denial of permitting in our midwest for the past two years. It takes years to find the oil deposits and extract them from the ground, and I feel we are just now seeing the beginning of the damage the Gulf drilling moritoriam has done in interrupting our demestic oil production in the near future. This could explain why many experts are predicting five, and even six dollar a gallon gasoline by the end of this year.

     I would imagine it would be a huge plus for Obama’s reelection chances if he could continue to allow the jacking up of the price of gasoline to over five dollars a gallon this year, let everyone feel that pain at the pump, and then come up with a savior-like lowering of gasoline prices by the summer of 2012, just in time to sway public opinion of  him. The manipulation of our economy for political gains has been done before, many times. Super high gasoline prices would also help Obama sway people to accept his currently dysfunctional green energy plan, and also continue his wealth redistribution agenda through green energy companies, many of which have already proven to be a huge failure here in America. We have pumped billions of tax dollars into green energy companies with very little to show for it today. Super high gas prices will also allow Obama to continue the theft of tax dollars for his favored redistribution of wealth to unproven, dysfunctional green energy companies, further driving up our massive debt problem. This follows the pattern of continued government spending with nothing to show for it in return that we have seen from the Obama regime since day one in office. Understanding the politics behind the current gasoline prices, and  possible motives behind continued high gasoline prices is crucial to the 2012 elections, in helping people to understand just what four more years of proven dysfunctional Obamanomics will mean to America and her economy.

    Another reason behind high oil prices can be found in the connection between the big oil companies, wall street and Opec. With the current economy still struggling along at a snails pace, why in the world is the stock market still rocking and rolling at record high levels ? I found a pretty good explanation over at investorplace.com :    

Big Oil Needs Expensive Gas to Survive: According to industry experts, the “easy” oil in the Middle East and Africa can be pumped for as little as $5 a barrel from simple surface well. Costs vary greatly for unconventional projects such as deepwater drilling and tar sands, but can easily be $40 a barrel or higher for tough to access supplies of oil. With fierce global competiton and  state-run monopolies in Venezuela and China squeezing out Western energy giants, the bottom line is that cheap oil – and subsequently cheap gasoline – just doesn’t work out on the balance sheets of big oil. Call me a conspiracy theorist, but considering that Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), BP plc (NYSE: BP), ConocoPhillips (NYSE: COP) and Royal Dutch Shell (NYSE: RDS.A) have a collective market value well over $1 trillion, it’s hard to imagine all that financial clout simply sitting by and letting oil slump back to $50 or $60 bucks a barrel where high-tech, high-cost extraction leaves them little or no profit margin.

OPEC Wants Expensive Oil: The Organization of the Petroleum Exporting Countries, or OPEC, has made it clear that $100 oil isn’t a sign of alarm but rather a decent equilibrium. The group has gone on the record saying oil prices above $100 a barrel are no reason for an emergency session. “If oil prices increase to $100 or more, it is not worrying and does not justify holding an extraordinary meeting by OPEC,” Iranian oil minister Masoud Mirkazemi was quoted as saying by the ministry’s news agency Shana. Is not worrying to whom, Mr. Mirkazemi? I think motorists and crude-dependent industries would have a different point of view.

   In the first paragraph there we see the mention of the state-run monopolies in Venezuela and China, I feel that another state-run monopoly deserves mention here in the name of Brazil, where Obama currently met with the new president, who also happens to be a former leftist, Marxist guerrilla revolutionary who did time in prison.  Obama also handed Brazil’s state-run oil company, Petrobras, a permit to for oil storage and to drill for oil in the deepest part of OUR Gulf waters recently. I find this to be a glaring example of Obama’s hypocrisy working against America and her own oil production. Recently, many Congressmen and Senators have demanded an explanation for this action from the President, but to no avail. So much for the most honest and open administration in U.S. history that Obama promised in 2008.  Are these the actions that the American people will be duped into voting for again in 2012 ? 

     As a final note, we now see former big oil tycoon- turned green energy investor, T. Boone Pickens smiling all the way to the bank once again due to his ” predicted ” skyrocketing oil prices. He has been calling on legislators to mandate the switch to wind energy for the past several years, and in which he is now heavily invested. For all the green energy believers and common sense deniers out there , I will leave you with a great example of how green energy could not even give 87 people on a small island off the coast of Scotland enough power to heat a teakettle here. That’s right, a small island of 87 citizens have windmills, solar panels, and hydro-electric turbines, yet had to rely on their own noisy gas fired generators to function on a daily basis. Remember Mr. Obama’s famous words uttered in 2008. ” Under my plan electricity rates will necessarily skyrocket. ”  That is no different then my thoughts when filling up the gas tank this week, ” After two years of Obama rule, we are now paying almost $100.00 to fill up the gas tank on a Honda Civic. Can hard working Americans afford another four years of Obama’s ” fundamental transformation of America” ?

Wise Words from Allen West- Weekly Wrap-up

Click here to view this email in a browser
About Me      Contact Me      Serving You      Media Center      Legislative Work      Our District      Resources
Click here to foward this message to a friend!
Click here to sign up and receive my email updates
Click here to contact me by e-mail
Click here to visit my Facebook page Click here to visit my Twitter page Click here to visit my YouTube page

Dear Patriot,

Greetings constituents, fellow Floridians, and all Americans across our great land. It is again time for our weekly Congressional update. As I travel throughout the district, I certainly appreciate the feedback on these missives, and even the emails and support from those outside our district who are receiving these reports.

There are those who feel the issues facing America are not threatening, certainly not of immediate concern. As I did my regular Saturday morning run along Fort Lauderdale beach this weekend, I pondered a simple question: “Who is leading America?”

Four days earlier, on Tuesday, we faced a very telling vote in the House of Representatives to approve yet another short-term Continuing Resolution (CR) to fund the Federal Government for FY 2011. The previous 111th Congress failed in one of their only true mandates, to develop a budget. We have been operating on these short-term measures since 1 October 2010. I had previously given my support to the CR on 1 March 2010 after we had passed HR 1 in the House of Representatives.

This past Tuesday I voted “Nay” on H.J. Res 48, the second Continuing Resolution. I voted no because in the month of February we spent $223B, although the shortest month of the year, it was the largest ever deficit spending month in United States history. Just as a comparison, President George W. Bush’s biggest annual deficit was $400B. We are basically spending $4-$5B a day.  Therefore, the offer of $6B of spending cuts over a three week period was nonsense. Furthermore, the offered cuts were the cuts “preferred” by the Democrats—meaning we did not even put up a fight for what the American people desire.

The measure passed 271-158. 54 Republicans voted “Nay” and from this group we shall have the nucleus to make a principled stand.

The President appointed Vice President Biden as his “budget negotiator,” who then in turn departed the Country… so I repeat the question I was pondering: “Who is leading America?”

Gas prices continue to spike, some of the highest prices ever for this time period in America. Once again, we got a nice speech from the President, but we still do not have a visionary proposal to develop our full spectrum of energy resources in America. Energy independence is a national security issue, an economic issue, and would certainly stimulate job growth in America. We have heard time and time again that this kind of visionary thinking will take too long. Funny thing, I remember hearing back in the late 70s, 80s, and 90s that it would take ten years. Instead I know that we have sent $2B of taxpayer dollars to Brazil for offshore oil exploration…”Who is leading America?”

As I write this morning, my heart pours out to the people of Japan who are enduring an incredible aggregation of natural disasters, an epic earthquake, massive tsunami, and now a potential nuclear disaster. It is the discipline, determination, and faith that will sustain the Japanese people at such a critical time. My prayers go out to them, as well as for our brave men and women of our U.S. Armed Forces who again show their strategic flexibility to operate in the full spectrum of operations, this time lending humanitarian assistance, and exposing themselves to possible high levels of radiation.

As well, my heart goes out to the people of Israel who have endured so much in the way of terrorist attacks, yet continue to be castigated negatively as an occupier. This week, Israel suffered from a Hamas delivered, massive mortar attack emanating from the Gaza strip, seemingly emboldened by the “new” military regime in Egypt. For the first time in 40 years, there has been a recent transiting of Iranian warships through the Suez Canal, potentially delivering weapons. Furthermore, a high level Egyptian military official made a trip to Syria, the same time as United States Secretary of State Hillary Clinton was visiting Egypt.

However, most reprehensible was the egregious, maniacal, and animalistic attack on a Jewish family, The Fogels. I have yet to hear a statement of condemnation from our highest elected officials, perhaps they are not aware? The group claiming responsibility is the Al Quds Brigade which has ties to Fatah…”Who is leading America?”

Lastly, after some 2-3 weeks of hand wringing, we have decided to assist in combat operations against Libya. My question is simple, what are the objectives and who in Congress was consulted? We have seen entry into operations without a clear objective before; in the Balkans, Somalia and Lebanon. Is there a common denominator? Understand, you cannot conduct air operations without some type of ground coordination. So when will we introduce ground forward air controllers or similar personnel? Who will do the target coordination? Who is our Commander in this new combat zone front which has been opened?

Trust me, no one despises Gaddafi more than I do, but as a former professional military officer, I have concerns about “mission creep.” I believe that at the onset, the right response would have been the same as President Ronald Reagan’s back in the mid 80s to Gaddafi, a response which silenced him for some 30 years.

With all this happening in our country and around globe… “Who Is Leading America?” I presume he’s filling out NCAA College Tournament brackets and traveling to South America, Rio and considers these more important leadership challenges.

America is currently a leaderless, rudderless ship of state being tossed about the tumultuous seas of a volatile and chaotic world, and could soon find herself cast upon the rocks… for we have no one manning the lighthouse of principles. I am not a Navy Man but somehow I will figure out that helm, port, starboard stuff, and do my part to right this ship and set sail to the “Dawn of a New America.”

Highlights of the week:

– Monday, Addressed the League of Educational Awareness of the Holocaust (LEAH) teachers on the East steps of the U.S. Capitol. We also had visits from (3) families from CD-22 who brought their spring break kids along.

– Tuesday, had a visit from my military spiritual mentor, LTC(Ch) Pete Sniffin, who is about to deploy to Afghanistan. One of the Leavenworth 10 families, Michael Leahy, also visited and provided me an update. Also, voted no on H.J. Res 48 Continuing Resolution. Ended the day with an office call with the Jacksonville District Corps of Engineers updating our priority projects in the district.

– Wednesday, both Tuesday and Wednesday had several Congressional hearings, especially armed services. On Weds heard the Afghanistan combat theater update from General Petraeus. We also had a military personnel subcommittee meeting on health systems and defense health program efficiencies. The biggest surprise was a call from a very famous and popular Hollywood conservative actor. The evening wrapped up with the Congressional Black Caucus PAC dinner.

– Thursday, it was St Patrick’s Day and I wore a green tie. I was reunited with an old Army buddy Lt. Colonel Clayton Neal who is now an Army JROTC Commander for Olympic High School in Charlotte NC. I spoke with about 30 incredible future leaders of our Country on the East steps of the U.S. Capitol. I stood alongside my military personnel subcommittee Chairman Joe Wilson (R-SC) as we did a press conference speaking out against the appointment of former Maine Governor Balducci as the new “Military Healthcare Czar.” We had two armed services hearings; one on military personnel and the other on Law of War detention and GITMO detainees….the administration does not get it!

– Friday, I had the distinct honor of addressing the Forum Club of the Palm Beaches, a crowd of more than 600 people. I shared the stage with a true American Statesman, Congressman E. Clay Shaw, who was presented with a Lifetime of Service Achievement award. Also on Friday, I addressed the Tax Council symposium at The Breakers and visited the Cralle Hyperbaric Oxygen treatment facility in Delray Beach to learn how their medical technology has been helpful in treating Traumatic Brain Injury.

It is my honor to serve you all!

Steadfast and Loyal,

Allen 

Investors Turning Away from U.S. Debt Over Record Deficits

The proverbial chickens.. have come home to poop –  or roost if you prefer. The world’s largest bond investment fund, Pimco’s Total Return Fund removed U.S. government debt from its holdings:

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits.[1]

As demand for Treasuries falls, so does the yield. As the yield drops, the bonds themselves become even less attractive.

Bonds are unattractive for two major reasons, the amount of debt we have/will take on and economic outlook.

Debt and Deficits

The fiscal track that four years of liberal leadership in Congress have provided is one of rapidly rising deficits and an unmanageable national debt.

America’s National Debt rose by another $63.7 billion dollars in the month of February, according to the Bureau of Public Debt*. That currently leaves us with a grand total of $14.195 trillions of debt as of March 1st, 2011.[2]

Institutional investors look at debt to income ratios when purchasing investments. For a government, gross domestic product (GDP) is used as income. Congress holds the purse strings of government spending. The chart below illustrates how rapidly spending has grown under the recent Democrat congress and why investors are starting to balk at the United States as a solid investment

debt-to-gdp 2002-2012

20 Years of Debt-to-GDP (3)

Economic Outlook

The economic outlook for the U.S. can be viewed through a few lenses: Consumer confidence (willingness to spend), spending power (ability to spend),

Are Americans Willing to Spend

As America’s economy is largely driven by consumption, consumer confidence is a key forward-looking indicator.

The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, fell more than two points on Thursday to 75.4, the lowest level measured since September 2010.[4]

Gallup also released a poll that shows that U.S. consumers expect to have less money to spend due to anticipated fuel price increases.

How high do you think the price of a gallon of gasoline will go in the area where you live this year? March 2011

As Americans lose faith in the recovery, they will start holding on to their money instead of putting it to work in the economy. This will impact business investment and hiring.

Will Americans be Able to Spend

If the recovery continues as a jobless one, there will be no increase in the ability of Americans to spend. If they aren’t working and earning, they cannot spend. Last week’s jobless numbers rose much more than expected. – up 26,000. That’s almost 30,000 more people that have filed for unemployment benefits for the first time. That doesn’t even take into account those that are still on the government roles or have already run out of benefits.

Gas prices are skyrocketing. Some predictions have gas hitting $5 by labor day and $6 by the end of the year. That will more than double the amount of money U.S. families have to spend on getting to and from work from incomes that are largely static. This will drive consumers to focus on things they need to buy and hold off on less necessary purchases. As a Weekly Stadard post put it, “..January of 2009. Hope was in the air, but more importantly, gas was under two dollars a gallon. Since then gas prices, have gone up 67 percent and it’s an ominously upward trend.”

Oil prices also affect other consumer goods as fertilizers used in farming require petroleum distillates, tractors require fuel, trucks need fuel to take the food to market and global food prices were already rising before the energy crisis that is in play.

Commodity prices have been going through the roof for months now. Cotton, lead, copper, oil, gold, silver .. you name it. This will affect the cost of tires, plastics, electronics, jewelry, clothing.. everything.

Lastly, QE2: the Federal Reserve’s strategy to push down long-term interest rates by buying up to $600 billion in U.S. Treasuries (yes, the same investment regular investors are now shedding). If you combine this with over a trillion dollars that was used to by mortgage-backed securities, a ridiculous sum of money has been pumped into the U.S. economy. More dollars chasing fewer goods = inflation.

Some or all of these pressures could create inflation, perhaps on a scale not see since the last truly progressive U.S. president, Jimmy Carter.

The Sum of it All

Investors are increasingly turning their noses up at U.S. Treasury debt. That will ultimately mean that interest rates will have to increase to offer better yields to investors. Those increased borrowing costs will cause businesses to either raise the cost of their goods (inflation) or halt investment/hiring (unemployment). Neither are positive outcomes to our government’s fiscal irresponsibility.


sources:
[1] – http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html
[2]- http://conservativedailynews.com/2011/03/federal-debt-report-feb-2011/
[3] – Chart from usgovernmentspending.com overlays from ConservativeDailyNews.com
[4] – http://www.rasmussenreports.com/public_content/business/indexes/
rasmussen_consumer_index/rasmussen_consumer_index


Why Oil Price Drop .. Doesn’t Matter

gas pricesYesterday everyone and their brother was reporting that oil prices had managed to settle near $104.

First, how is that good news? It’s just not as bad as the news we were told to expect. So does that make oil “unexpectedly” near $104??

Reading all the news, you’d think this was either good or confusing news. The news is not confusing, it points to a dangerous issue in American infrastructure – we can’t refine gasoline and petroleum distillates as fast as they are needed. Thanks to Obama’s confused and ill-conceived energy policy, America’s production centers, commuters, manufacturers and transportation business may come to a screeching halt.

The American Petroleum Institute said late Tuesday that crude inventories rose 3.8 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had forecast an increase of 2.3 million barrels. However, inventories of gasoline fell 3.7 million barrels and distillates fell 1.5 million barrels, the API said.

Gasoline and distillate inventories dropped while oil inventories rose. Gasoline and distillates come from refineries. You know, those giant job-producing, product-manufacturing hubs of capitalism that the left-wing extremists have been limiting for decades. What that means is that gas prices, to use Obama’s words,  “..will necessarily skyrocket” regardless of the amount of available world oil. As our population and industry attempt to grow, a stagnating refining capacity will not be able to keep up. OPEC can pump until it’s blue in the face (not meant to be creepy), and it just won’t matter – we won’t be able to refine it into usable products. [1]

What?  You thought oil production was the issue? Sure, production is one issue, but even once we get ANWR, North Dakota (Bakken region), offshore, shale oil and every other kind of drilling going in the United States, we won’t have any way to turn it into gasoline.

Iran has this problem today. While they are a net exporter of crude oil, they are a net importer of gasoline – Obama intends to turn the United States into a net importer of gasoline and his plan.. is working.

Why would our President, who said he wanted to fix the trade deficit, want to make us a net importer of gasoline? Remember the “necessarily skyrocket” comment? Yes, if ALL energy sources get too expensive for us to pay for, we will have to turn to government subsidized green “energy” or worse yet, the government directly.  Either would be fine for our golfer-in-chief.

A predominant thought in the progressive, left-wing extremist, green energy movement is that gas prices need to escalate to levels close to those in Europe. In order to do that, we would have to import it – like Europe does. gas is cheaper in the United States because we don’t have to ship it in. We bring up or in the raw material, crude oil, and refine it here.  When we start importing most of our gasoline, we will have to pay for the cost of the raw material and foreign refining costs. Of course the next problem would be the World’s capacity to refine the gasoline, diesel and distillates. If American refining capacity does not continue to grow with world demand, prices for the refined crude products will have to rise.

We need increased refining capacity along with more production of coal, natural gas, crude.. all of it. Oil is about to become only one part of our dependency problem, and this one dependency has been created by yours truly – Barack H. Obama.


Sources:
[1] – http://www.washingtonpost.com/wp-dyn/content/article/2011/03/08/AR2011030800716.html

Obama May Open Strategic Petroleum Reserves to Keep Gas Prices Down and..

Obama’s Chief of Staff, William Daley was interviewed on “Meet the Press” this morning. In the interview, Daley said, “The issue of the reserves is one we are considering .. All matters have to be on the table when you see the difficulty coming out of this economic crisis we’re in and the fragility”.

Strategic Petroleum Reserve Sites

Courtesy: DOE

The Strategic Petroleum Reserve (SPR) is located across four sites in Louisiana and Texas and according to the SPR website, it currently holds 762.5 Million barrels of oil.

Across the nation gasoline is getting more expensive. Gas prices in North Carolina are hovering just above $3.50 per gallon and there are already areas, such as Chicago,  in the U.S. that are seeing  $4 (according to @deadvoter from twitter). Oil crossed $105 per barrel for the first time since 2008 and the Obama administration is searching for some way to handle the situation.

Democrat law makers think they have the answer. Several of them have sent letters to Obama asking that he open the reserves to give price relief to American consumers and to help fund progressive initiatives. Senator Kirsten Gillibrand’s (D-NY) letter opens (emphasis mine):

With gas prices around the nation at near-historic highs, we write to urge you to exercise your emergency authority to release oil from the Strategic Petroleum Reserve (SPR).  This action would immediately lower gasoline prices, generating significant revenue to invest in your call for one million electric vehicles on the road by 2015.

While gas prices may be one reason for the requests, Sen. Gillibrand also made the case that this could be a way to fund electric vehicles – a purpose for which the SPR was never intended.

Each time a new revenue stream is introduced at the Federal level, it starts as temporary and ends up being permanent. The questions remains that if the progressives in D.C. turn the SPR into a cash cow for the green energy movement, what will stop them from continuing to do so – completely depleting the entire reserve?

 

Highest Ever Gas Prices for January

American Automobile AssociationAURORA, Ill., Jan. 18, 2011 /PRNewswire/ — AAA Chicago’s most recent Fuel Gauge Report estimates that in Illinois, regular unleaded gasoline has increased $.16 during the past month, forecasting an average cost of $3.22 per gallon for the month of January, which is $.38 higher per gallon than last year.

In northern Indiana, gas prices average $3.09, which is up 16 cents from December 2010 and up $.32 from January 2010. Both Illinois and northern Indiana January averages represent the highest prices ever for the start of a new year.

“Oil prices are trading at nearly $90 per barrel, which is having an enormous effect on the price of gasoline at the pump,” said Beth Mosher, director of public affairs for AAA Chicago. “Unfortunately, at least in the near-term, consumers should get used to paying these high prices at the pump.”

In Cook County, Ill., self-serve regular unleaded gasoline averages $3.37, which is up $.18 from last month and $.41 higher than last year’s price-per-gallon.
In DuPage County, Ill., self-serve regular unleaded gasoline averages $3.25 per gallon, which is a 15-cent increase from December and up 39 cents from last year.
In Kane County, Ill., self-serve regular unleaded gasoline averages $3.22 per gallon, which is 16 cents higher compared to last month and $.38 higher than January 2010’s price.
In Lake County, Ill., self-serve regular unleaded gasoline averages $3.20 per gallon, which is 17 cents higher than last month and up by $.37 compared to this time last year.
In McHenry County, Ill., self-serve regular unleaded gasoline averages $3.20 per gallon, which is 17 cents higher than last month’s average and $.35 higher than January 2010’s price.
In Will County, Ill., self-serve regular unleaded gasoline averages $3.23 per gallon, which is 16 cents higher compared to last month and $.39 higher compared to last year.
In Champaign County, Ill., self-serve regular unleaded gasoline averages $3.15 per gallon, an increase of 19 cents from December and an increase of $.38 from last year.
In McLean County, Ill., self-serve regular unleaded gasoline averages $3.11 per gallon, which is 18 cents higher than last month and $.38 higher than last year.
In Peoria County, Ill., self-serve regular unleaded gasoline averages $3.14 per gallon, which is up $.19 compared to last month and up $.39 from January 2010.
In Sangamon County, Ill., self-serve regular unleaded gasoline averages $3.12 per gallon, which is 19 cents higher than last month and $.43 higher than last year.
In Winnebago County, Ill., self-serve regular unleaded gasoline averages $3.12 per gallon, an increase of 15 cents from December and $.33 higher than January 2010.
In Allen County, Ind., self-serve regular unleaded gasoline averages $3.11 per gallon, which is an increase of 17 cents from last month and $.34 higher than January 2010’s price.
In Lake County, Ind., self-serve regular unleaded gasoline averages $3.09 per gallon, a 16-cent increase from December’s average and a $.32 increase from a year ago.
In Porter County, Ind., self-serve regular unleaded gasoline averages $3.08 per gallon, which is 16 cents higher than last month and $.32 higher than last year.
In St. Joseph County, Ind., self-serve regular unleaded gasoline averages $3.14 per gallon, which is 20 cents higher compared to last month and $.39 higher compared to last year.

Fuel prices are posted on-line at www.fuelgaugereport.com, which updates prices daily for unleaded, diesel and E85 blends of fuel.


SOURCE:

AAA

Web Site: http://www.fuelgaugereport.com

« Older Entries Recent Entries »