President’s policies push gas prices even higher than before release of reserves

posted at 7:15 pm on August 8, 2011 by Tina Korbe

The Obama administration’s energy policies continue to be ill-advised, as the rise in gas prices post-Obama’s-release-of-strategic-reserves proves. Gas prices are now even higher than they were before the administration made the decision to release 30 million barrels of oil over 30 days to compensate for supply disruptions in the Middle East. Ed predicted this several weeks ago, but recent reports confirm it:

More than a month after the Obama administration said it would tap the country’s emergency oil reserve to try to combat supply disruptions in the Middle East, gas prices at the pump actually have risen 10 cents.

President Obama had hoped the move, coming at the onset of the summer driving season, would temper the loss of supplies due to the ongoing civil war in Libya. Working with international allies, the U.S. said on June 23 that it would release 30 million barrels of oil over 30 days, while other countries with strategic reserves agreed to release another 30 million, in staggered sales during July.

And prices at the pump did dip, at first, from a nationwide average of $3.61 down to $3.55, according to AAA. But by last week, they had rebounded and the price per gallon stood a dime higher than when the administration first made its decision.

The Heritage Foundation’s Rob Bluey explains that, while the president’s decision to release the reserves was the most glaring of the Obama administration’s energy missteps, it has been by no means the only one:

The most glaring example of Obama’s mismanagement is the decision to tap the Strategic Petroleum Reserve on June 23. Heritage experts James Jay Carafano and Nick Loris outlined the limited circumstances under which the White House could release oil. None of these conditions were met in June, and the Administration itself backpedaled when questioned about the timing. …

Six weeks later, it’s increasingly apparent that Obama took the action to bolster his dismal poll numbers, hurt by the sluggish economy and rising gas prices. …

If the President was serious about bringing down the cost of gas, he would instruct his Administration to reduce the bureaucratic red tape on energy projects in the Gulf of Mexico. A new report from Greater New Orleans Inc.revealed that the issuance of drilling permits is down 71 percent compared to the monthly average over the past three years. …

Worse still is the news that the Department of the Interior might let hundreds of Gulf of Mexico drilling leases expire, costing jobs and further decreasing production.

In other words, the president made choice after choice that hampered the ability of domestic oil producers to do what they do best — produce oil. Then, when Libya-related supply disruptions threatened the president’s political palatability, he tried to compensate in the worst way possible — by tapping reserves designed for far more important times of need than a season of presidential unpopularity.

What’s crazy is that, now, the president might receive some help on gas prices — from the failing economy:

Last week’s stock market drop and fears of the lingering sour economy have already begun to put downward pressure on oil, which analysts said will translate to lower pump prices.

But, in this case, decreased demand is far less desirable than increased supply. A sour economy is anything but a long-term solution to ensure the affordable energy needs of the nation are met or to reduce the nation’s dependency on foreign oil. On the other hand, increased domestic oil production and incentives to produce and purchase natural gas (the alternative energy source alternative energy advocates always seem to forget!) would eventually yield the outcomes everyone says they want: cheaper fuel prices and more jobs.


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The picture size is perfect, Tina.

portlandon on August 8, 2011 at 7:16 PM

EPIC fail again.

milwife88 on August 8, 2011 at 7:17 PM

Access and use our own natural resources–NOW!

predator on August 8, 2011 at 7:17 PM

BO, an economic genius.

jbh45 on August 8, 2011 at 7:17 PM

If you wingnuts would just inflate your tires!!

KeepOhioRed on August 8, 2011 at 7:19 PM

Yes we canMake you pay more for gas.

One more reason it’s the Obama Recession.

Chip on August 8, 2011 at 7:19 PM

He’ll empty out that reserve 3 weeks before the 2012 election.

Take it to the bank.

Knucklehead on August 8, 2011 at 7:20 PM

Well he did say he’d like to see gas at $8 a gallon.

All according to plan. Starve us of oil, heat, electricity, and make sure all the money we could be making off of oil stays here, we have to make more sure, that our money goes to middle east countries who dutifully spend it on ways to destroy us.

Standing by his muslim brothers ya know.

capejasmine on August 8, 2011 at 7:20 PM

If you wingnuts would just inflate your tires!!

KeepOhioRed on August 8, 2011 at 7:19 PM

And tune up your cars!

predator on August 8, 2011 at 7:20 PM

ROFL

Bishop on August 8, 2011 at 7:23 PM

Keynesian, meet Austrian.

shawk on August 8, 2011 at 7:25 PM

To quote Richard Pryor:
“That boy was a genius.He could book the numbers and didn’t need paper or pencil.”

docflash on August 8, 2011 at 7:25 PM

He needs to resign. The world is spinning out of control and he doesn’t have a clue what to do.

WisCon on August 8, 2011 at 7:26 PM

Unemployment is certainly greener than employment. I’ll give him that. Can’t say he isn’t making any progress conserving energy.

RBMN on August 8, 2011 at 7:26 PM

Geez, I HOPE when he’s done I still have a little CHANGE in my pocket.

BTW, starting a new business venture if anyone wants to invest. Selling Apples on the corner.

hawkdriver on August 8, 2011 at 7:27 PM

“The Obama administration’s energy policies continue to be ill-advised…”

I’m beginning to see a pattern here…

Seven Percent Solution on August 8, 2011 at 7:27 PM

Barry Obama suuuuper genius….

sandee on August 8, 2011 at 7:27 PM

Well at least bho will have fuel for AF1 and his bus to get around campaigning. The rest of us pay more. Sure don’t have any use for bho!
L

letget on August 8, 2011 at 7:28 PM

This guy seems to do everything he can to raise energy costs and reduce jobs.

CW on August 8, 2011 at 7:30 PM

My collie says:

No one can be THIS consistently wrong about EVERYTHING, unless…

…unless he’s doing all of it “on purpose”, Collie? Yes, the thought HAS occurred to me. My faith in Hanlon’s razor was once unshakable — but now, I’m not so sure.

CyberCipher on August 8, 2011 at 7:30 PM

BTW, starting a new business venture if anyone wants to invest. Selling Apples on the corner.

hawkdriver on August 8, 2011 at 7:27 PM

Ahhh. Not on my side of the street. Actually I have a lemonade stand. I should be OK.
/

Electrongod on August 8, 2011 at 7:31 PM

OT, but get a load of crr6 on the “untransformational President’ headlines thread. I’ll leave you with merely her final thought:

America loves him, and agrees with his policies. The Teathuglicans who control the media are just ruining everything.

crn6 on August 8, 2011 at 7:23 PM

JeffWeimer on August 8, 2011 at 7:31 PM

What’s crazy is that, now, the president might receive some help on gas prices — from the failing economy:

Hooray for the double dip recession!

rbj on August 8, 2011 at 7:32 PM

The whole “release the reserves” gambit is typical of the political mind – they think “we have to do something about xyz, but we have to do it in a way that is clear we get the credit.”

Look at it that way, and it makes perfect sense.

JeffWeimer on August 8, 2011 at 7:34 PM

Repeal ObamaCare and start issuing new drilling permits in the Gulf! Isn’t he still ignoring a court order?
Are Presidents allowed to ignore court orders?
Why are Republicans still doing nothing about that?

What happened to the gun trafficking hearings?
Why are the Republicans saying nothing about something as important as this drilling moratorium!?

JellyToast on August 8, 2011 at 7:34 PM

Whoops, stand down. that was crn6. I need glasses or something.

JeffWeimer on August 8, 2011 at 7:36 PM

crn6 on August 8, 2011 at 7:23 PM

Did you change Names?

Crr6 to Crn 6?

portlandon on August 8, 2011 at 7:38 PM

BTW, starting a new business venture if anyone wants to invest. Selling Apples on the corner.

hawkdriver on August 8, 2011 at 7:27 PM

Ahhh. Not on my side of the street. Actually I have a lemonade stand. I should be OK.
/
Electrongod on August 8, 2011 at 7:31 PM

“My NLRB will be in touch with you shortly. Depending on Union approval, we’ll probably offer to let you stay in business for the paltry BarryO Re-election donation of $125k.” – BarryO

Robert17 on August 8, 2011 at 7:41 PM

Did you change Names?

Crr6 to Crn 6?

portlandon on August 8, 2011 at 7:38 PM

What have we got, two of them now?

Knucklehead on August 8, 2011 at 7:42 PM

If and when the dollar declines, oil prices, like all other commodities will increase not matter if consumption is off.

Kermit on August 8, 2011 at 7:42 PM

JellyToast on August 8, 2011 at 7:34 PM

The best thing about this whole downgrade deal for Obammy is that “fast and furious” has all but vanished from the news. Makes you wonder, doesn’t it?

predator on August 8, 2011 at 7:42 PM

Whoops, stand down. that was crn6. I need glasses or something.

JeffWeimer on August 8, 2011 at 7:36 PM

crn6 has been totally consumed…there is no hope.
crr6 can be helped.

Thank you President Obama.
crr6

I take that back.

Electrongod on August 8, 2011 at 7:43 PM

Barry thinks the price of gas should go higher. Socialist truth tells him that.

As for job creation, why can’t the Republicans just let him higher more government workers?

After all, Timmy and Ben still have rolls of paper and barrels of ink. Money won’t be a problem.

GarandFan on August 8, 2011 at 7:44 PM

I take that back.

Electrongod on August 8, 2011 at 7:43 PM

crn6 is a parody. I’m just hoping he/she doesn’t get banned, because it’s doing a great job so far.

Good Solid B-Plus on August 8, 2011 at 7:46 PM

Whoops, stand down. that was crn6. I need glasses or something.

JeffWeimer on August 8, 2011 at 7:36 PM

I suspected something was amiss, she usually isn’t that bad or delusional.

Chip on August 8, 2011 at 7:46 PM

Way way successful at be the DOTUS!!!

The left and the Greenies in particular should be thrilled. He’s driving us back a couple of centuries…..where we all live like Hobbits!

Maybe there was more to the WSJ/McCain than they meant to give away.

:-)

PappyD61 on August 8, 2011 at 7:46 PM

As for job creation, why can’t the Republicans just let him higher more government workers?

Higher? I think most of ‘em are pretty high already.

predator on August 8, 2011 at 7:46 PM

He’ll empty out that reserve 3 weeks before the 2012 election.

Take it to the bank.

Knucklehead on August 8, 2011 at 7:20 PM

I’ll take your word. After all, we don’t really need a crystal ball these days to see what Mr. Smarty Pants is going to do next.

RDE2010 on August 8, 2011 at 7:47 PM

Good article except its end: What makes you think Obama wants “cheaper fuel prices and more jobs”? Obama’s conduct demonstrates that he cares about neither of those goals.

GaltBlvnAtty on August 8, 2011 at 7:49 PM

JellyToast on August 8, 2011 at 7:34 PM

The best thing about this whole downgrade deal for Obammy is that “fast and furious” has all but vanished from the news. Makes you wonder, doesn’t it?

predator on August 8, 2011 at 7:42 PM

The NSM has been trying to bury Walkergate for months now, and just when the news on it became “Fast and Furious”….

But I’m not sure it could be a conspiracy – most likely it’s just rank incompetence on the part of Bluffy the Economy Slayer.

Chip on August 8, 2011 at 7:50 PM

Time for a Blue-Ribbon Sooper Dooper ShamFriggin’Wow Shazam! Energy Committee.

Bugler on August 8, 2011 at 7:50 PM

Increasing domestic energy production, an obvious two-fer: Jobs and security. Agreeing to the House-passed CCB, a multiple-fer: Actually cut real spending, cap it as a percentage of GDP, a balanced budget down the road, a degree of certainty to businesses large and small thus freeing them to hire, the credit rating agencies happy and, as a result of all of the above, the libs get their heart’s desire, their life’s blood … more revenues for their church, the government.

Then again, these policies deprive them of their daily fix of class warfare and punishing the “rich”, and keeping the takers, their voters, hooked on a feelin’.

TXUS on August 8, 2011 at 7:53 PM

…unless he’s doing all of it “on purpose”, Collie? Yes, the thought HAS occurred to me. My faith in Hanlon’s razor was once unshakable — but now, I’m not so sure.

CyberCipher on August 8, 2011 at 7:30 PM

Remind Scruffy about the Bush years. You remember … one day he was the Village Idiot, and the next day he had crafted a diabolical scheme to enrich his friends who owned oil stocks by murdering thousands of civilians and U.S. soldiers through his mind control over maggoty IslamoNazi Muslims? One day he was so stupid he couldn’t speak in complete sentences and the next day he had somehow convinced the sophisticated liberal Democrat Senators to support his blood lust war for oil in Iraq and gotten them to spew outrageous lies about Saddam Hussein having “weapons of mass destruction”?

Remember?

I’d be careful about fantasies that have Obama being such a genius that he destroyed the U.S. economy single handedly … on purpose. He’s just a liberal idiot.

Jaibones on August 8, 2011 at 7:55 PM

He’ll empty out that reserve 3 weeks before the 2012 election.

Take it to the bank.

Knucklehead on August 8, 2011 at 7:20 PM

Yeap. Couple that with the movie Hollyweird is planning about his “heroic execution of the raid that got Osama,” and you’ve got Barry’s best chance of keeping his throne.

predator on August 8, 2011 at 7:55 PM

What have we got, two of them now?

Knucklehead on August 8, 2011 at 7:42 PM

We have an infestation.

Nuke it from space. It’s the only way to make sure.

portlandon on August 8, 2011 at 7:57 PM

Chip on August 8, 2011 at 7:50 PM

Nothing these people do is by accident. Do I think that this “team” of abject statists would stoop to any level to take attention away from what is one of the most disgraceful policies in my lifetime in order to save their collective a$$es by creating economic chaos? Or at least do as little to rectify it as possible in order to save said a$$?

The answer is yes–absolutely.

predator on August 8, 2011 at 8:02 PM

President’s policies Meant to push gas prices even higher than before release of reserves

There FIFY

bluemarlin on August 8, 2011 at 8:11 PM

He’ll empty out that reserve 3 weeks before the 2012 election.

Take it to the bank.

Knucklehead on August 8, 2011 at 7:20 PM

What bank might that be. The recent release (which hasn’t actually hit the market yet) is a pumping at a high capacity rate or a month. It would take several months to draw down the reserve at FULL pumping capacity.

Kermit on August 8, 2011 at 8:15 PM

BO BO da Clown !

Hummer53 on August 8, 2011 at 8:16 PM

BTW, Libya’s production will likely be cranking up in a couple of months.

Kermit on August 8, 2011 at 8:16 PM

I believe that little Bammie’s mysterious and inconsequential release of oil from the SPR was a method that the campaign devised to calibrate this tool for political purposes. Now they know X Barrels = Y Change in Oil Prices, and can plan how much to release just before the election.

slickwillie2001 on August 8, 2011 at 8:23 PM

crn just says what crr believes.

CW on August 8, 2011 at 8:26 PM

JellyToast on August 8, 2011 at 7:34 PM

The best thing about this whole downgrade deal for Obammy is that “fast and furious” has all but vanished from the news. Makes you wonder, doesn’t it?

predator on August 8, 2011 at 7:42 PM

The NSM has been trying to bury Walkergate for months now, and just when the news on it became “Fast and Furious”….

But I’m not sure it could be a conspiracy – most likely it’s just rank incompetence on the part of Bluffy the Economy Slayer.

Chip on August 8, 2011 at 7:50 PM

No worries folks GW/F&F won’t be off the radar long, Issa is a freakin pit bull, once he gets his teeth into something, he just won’t let go.

Archimedes on August 8, 2011 at 8:33 PM

Change…you can step in.

chewydog on August 8, 2011 at 8:48 PM

“PERRY AND TRUMP”

2012….NO BS…NO CRAP…TO HELL WITH CHINA….TELL IT LIKE IT IS…AND MOVE THE CAPITAL TO DALLAS…..WHERE THE OIL GUYS KNOW HOW TO MOVE THIS STAGNANT, MORIBUND, DISMAL ECONOMY.

Twana on August 8, 2011 at 9:04 PM

President’s policies push gas prices even higher than before release of reserves

NO MYSTERY HERE: Use of the strategic reserve was evidence of abject stupidity and total inability to think ahead.

landlines on August 8, 2011 at 9:15 PM

I’d be careful about fantasies that have Obama being such a genius that he destroyed the U.S. economy single handedly … on purpose. He’s just a liberal idiot.

Jaibones on August 8, 2011 at 7:55 PM

Yep, I vote for the idiot. However, he has done serious damage either way.

whbates on August 8, 2011 at 9:46 PM

Obama is a one man disaster… The out come is always the opposite of what he says it will be…
-

RalphyBoy on August 9, 2011 at 2:18 AM

Ogabe is the most honest Prez this country has ever had. He said he would de-weaponize space, NASA is done. He wanted gas prices high, we’ve been at $4 a gallon for awhile. He said he would destroy the coal industry, check. He said he would fundamentally change America(to a Progressive Socialist Nanny State in full), check. He’s actually doing all the things he campaigned on. The only question is are there enough American Idiots out there who hate the country enough to reelect the Kommunist from Kenya………

adamsmith on August 9, 2011 at 7:22 AM