Video: Why gas prices are so high (hint: it’s not the evil oil companies)

posted at 12:45 pm on February 24, 2012 by Tina Korbe

To listen to the president talk, you’d think federal government policy had nothing to do with the high gas prices we face at the pump. Oh, no; Middle Eastern instability or the greed of big oil companies are to blame. Unfortunately for the president, that doesn’t square with his energy record, which has — at every turn — created obstacles to American energy production and, in effect, driven gas prices higher. House Speaker John Boehner has released a timeline that captures Obama’s deleterious impact on the oil and gas industry — and, consequently, on gas prices. The timeline extends to the beginning of Obama’s term in office, but, as a sample, take a look at just the five most recent decisions the administration has made:

  • JANUARY 2, 2011 – TIME reported that the Obama administration issued the first in a series of regulations on January 2 designed to unilaterally impose a national energy tax. Gas is $3.05 a gallon.
  • JUNE 21, 2011 - The White House opposes the House-passed Jobs & Energy Permitting Act that would unlock an estimated 27 billion barrels of oil and 132 trillion cubic feet of natural gas. Gas is $3.65 a gallon.
  • NOVEMBER 8, 2011 – The Obama Administration releases a plan for a five-year moratorium on offshore energy production, placing “some of the most promising energy resources in the world off-limits,” according to the House Natural Resources Committee. Gas is $3.42 a gallon.

Yesterday afternoon, Fox Business Network’s Gerri Willis interviewed Gulf Oil CEO Joe Petrowski, who confirmed what Boehner’s timeline suggests. The government has an inordinate amount of influence over the energy industry and has repeatedly proved itself adept at picking losers to subsidize and winners to penalize.


It makes no sense, this administration’s endless war on energy. It makes even less sense when you consider Candidate Obama’s stated promises to achieve energy independence. If that’s his goal, he has a funny way of showing it. When he ran for president, he even shilled for the Alaska pipeline — a project that, under his actual administration, has met with significant regulatory hurdles and is not slated to begin construction until 2015.

At some point, the president will have to accept that the American public can see through his rhetoric. He might say he wants a clean and secure source of energy, but his actions repeatedly say otherwise. According to a recent AP/GFK poll, 58 percent of Americans disapprove of his handling of high gas prices. What’s up with the other 42 percent?


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0bama’s “arbitrary and capricious” Gulf of Mexico drilling moratorium attacked the economy of Louisiana, sent the rigs overseas, and choked out domestic supply.

If you have not yet watched Bobby Jindal’s speech at the “Rally for Ecdonomic Survival,” given in front of 11,000 enraged Cajuns at the Cajundome in Lafayette, Louisiana inJuly, 2010, you should. Listen to what Jindal says about 0bama’s attack on our domestic oil industry, you need to:

Sorry about the filming – I was using an unfamiliar camera – but after the beginning the filming improves….

Bobby Jindal moratorium speech, July 2010:
Part 1
Part 2

cane_loader on February 24, 2012 at 1:47 PM

Irrelevant when the chain of events is as follows:

a) Obama will cite “record oil company profits – (and those greedy fat cats got a tax break too)!”
b) MSM will replay it 24/7
c) Gallup will construct a poll in which at least 55% of the public agree.

Rinse and repeat.

mudskipper on February 24, 2012 at 1:30 PM

You forgot …

d) Boehner and the repugnant leadership will scream like little girls and join with dems to pass a tax on “big oil”.

Lost in Jersey on February 24, 2012 at 1:48 PM

At some point, the president will have to accept that the American public can see through his rhetoric.

WRONG! He will not. He’s a committed socialist and will go down with his socialist ship in NOV 2012.

TX-96 on February 24, 2012 at 1:50 PM

What would be the reaction of the MSM if Rick Perry was the one who came up with the algae suggestion?

galtani on February 24, 2012 at 1:50 PM

O’s policies to blame but not letting smooth talking big oil off the hook either. Spin,spin everywhere.

jeanie on February 24, 2012 at 1:52 PM

How Obama Makes Decisions

slickwillie2001 on February 24, 2012 at 1:47 PM

And all believable.

“We should explore this.”
“I’m out of here, Steve.”

Absolutely unqualified for anything other than talking.

Lanceman on February 24, 2012 at 1:54 PM

Let Boehner give a similar timeline for gas prices when Bush was president. The same reason it went high under Bush is the same reason it’s gone high under Obama – a lot of spending, some of permanent, financed by the Federal Reserve, by means of inflation.

http://lewrockwell.com/orig12/woodhill2.1.1.html

rickv404 on February 24, 2012 at 1:56 PM

The closing this week of the Chicago Climate Exchange, which was envisioned to be the key player in the trillion-dollar “cap and trade” market, was the final nail in the coffin of the Obama administration’s effort to pass the controversial program meant to combat global warming.

JPeterman on February 24, 2012 at 1:16 PM

Thank you. But it was actually sold. This is simply about money and control. He’s not stupid it’s intentional.

Chicago Climate Exchange is North America’s largest and longest running greenhouse gas emission reduction program. From 2003 through 2010 CCX operated as a comprehensive cap and trade program with an offsets component. In 2011 CCX launched the Chicago Climate Exchange Offsets Registry Program to register verified emission reductions based on a comprehensive set of established protocols. Participants interested in acquiring registered offsets may apply to become a CCX Registry Account Holder by filling out the Participant Agreement.

And this from wiki:

On March 4, 2009, ICE announced that ICE US Trust, LLC (ICE Trust), a New York limited liability trust company, received regulatory approval from the Board of Governors of the Federal Reserve System to become a member of the Federal Reserve System and to serve as a clearing house and central counterparty for credit default swap (CDS) transactions, initially for North American CDS indexes and later adding liquid single-name swaps. Now known as ICE Clear Credit LLC it is subject to direct regulation and supervision by the CFTC and the SEC.
In December, 2010, The New York Times fielded a substantial examination of the Trust and its members, saying in part “the details of their meetings, even their identities, have been strictly confidential. Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives … [and also] share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance,” a system with “costly implications” for customers and smaller banks. “The marketplace as it functions now ‘adds up to higher costs to all Americans,’ said Gary Gensler, the chairman of the Commodity Futures Trading Commission, which regulates most derivatives. More oversight of the banks in this market is needed, he said.”[7] In the same month, ICE said it was “well positioned” to establish a swap execution facility (SEF), having met with Commissioner Gensler or his staff four times in the past year to discuss SEF registration. An SEF or multiple SEFs will be the derivatives-trading platform(s) newly required under Dodd-Frank financial-markets reform.

FLconservative on February 24, 2012 at 1:59 PM

I figured ITguy would have already weighed in when I posted. Again, good stuff ITguy.

DanMan on February 24, 2012 at 1:26 PM

Thanks, DanMan.

I hope the HotAir audience, in general, finds my comments helpful and not annoying. There are certain things that I think we can’t emphasize enough… like this comparison. We need to get these numbers out to our friends and associates who don’t read HotAir.

Far from being “Bush’s fault”, things were actually very good under Bush and the Republican House and Republican Senate. Over the last five years, the Demonrats have absoultely tanked our economy.

ITguy on February 24, 2012 at 2:01 PM

CC: Fracking moron Bill O’Reilly

Buy Danish on February 24, 2012 at 2:05 PM

rickv404 on February 24, 2012 at 1:56 PM

I thought a big part of the spike in 08 was because of the dem moratorium on drilling. A barrel of oil was 140. After Bush canceled the moratorium, within 6 moths a barrel was selling for 45.
I point this out to libs and they don’t believe it. They are blinded by their own extremist bullcrap. On dec 31 of 2008 a gallon of gas was 1.53.
They don’t believe it.

Mimzey on February 24, 2012 at 2:07 PM

Time for all of us to check our tire pressure again…

right2bright on February 24, 2012 at 2:15 PM

I hope the HotAir audience, in general, finds my comments helpful and not annoying.

ITguy on February 24, 2012 at 2:01 PM

As someone who’s generally found to be annoying, let me say your comments are not annoying.

You are absolutely correct that we need to get this word out, but I do find it difficult to convey hard numbers to “purply” friends, coworkers and relatives (the ones for whom I think there’s hope). If you get too far into the weeds, their eyes tend to glaze over and you can feel the “why should I bother to even vote, they’re all the same” kinda vibe.

I try to stick to general ratios like oil lease sales are “half” of what they were. Annual deficit has almost “tripled”. National debt is “double” what it was. I can usually hold their attention quite a bit longer than if I start throwing numbers like 13 Trillion at them.

Lost in Jersey on February 24, 2012 at 2:17 PM

While it certainly appears to be true that the Obama Administration has not helped the situation, Big Oil is not exactly being forthright themselves. The question is, “if more oil is being produced in North America, then what is keeping Big O from selling it abroad for a higher profit”?

DDay on February 24, 2012 at 2:19 PM

You forgot the directive by Obama which allowed 38 (or More) formulations of gasoline up from 8 under Bush, thus increasing costs of delivery and production. I think he signed it his first Week in Office.

Bulletchaser on February 24, 2012 at 2:22 PM

ITguy on February 24, 2012 at 1:18 PM

I didn’t read your post before I posted, but thought that was the way it went.

Good info ITguy.

Mimzey on February 24, 2012 at 2:26 PM

In Calif, the EPA and state regulators have not issued new well permits for over 2 years to allow new water injection wells which supplements oil production in existing oil wells. Without these new water injection wells, oil production typically drops at 10% less oil production levels per year, with new water injection wells the production rate is leveled to a 3% oil production decrease.

The fact is the admistration increasing oil production is a LIE. Without new water injection well permits, oil production decreases every year.

Another LIE is that it takes 5 – 10 years for new oil production to the market. A new oil well can be on production within 30 days. A new well location can be setup so that portable tanks can hold the produced oil and water temporarily until a pipeline can be constructed, providing the EPA allows the permit.

LIE #3: domestic oil production is shipped to China? BS. Our production is shipped directly to a local refinery and used in ASouthern Calif.

dthorny on February 24, 2012 at 2:27 PM

They don’t believe it.

Mimzey on February 24, 2012 at 2:07 PM

“NO way, dude HALLIBURTON, blah, blah, blah, oil buddies, blah, blah, blah, war for oil”.

Q for libs: If the Iraq and Afghanistan wars were for oil, why did oil increase in price in 2008? Explain GW Bush dropping the drilling moratorium as prices dropped below 2 dollars a gallon?

Liberals are stupid. If you can get them to believe in “hopeandchange” slogans, sponsored by the communist party and Alinsky, you can sell them anything.

dthorny on February 24, 2012 at 2:34 PM

NONSENSE!
residentblue on February 24, 2012 at 1:04 PM

Shut up.

jawkneemusic on February 24, 2012 at 1:38 PM

All of his posts are nonsense; he’s just going for brevity this time…

affenhauer on February 24, 2012 at 2:44 PM

I thought a big part of the spike in 08 was because of the dem moratorium on drilling. A barrel of oil was 140. After Bush canceled the moratorium, within 6 moths a barrel was selling for 45.
I point this out to libs and they don’t believe it. They are blinded by their own extremist bullcrap. On dec 31 of 2008 a gallon of gas was 1.53.
They don’t believe it.

Mimzey on February 24, 2012 at 2:07 PM

I had the same exact conversation practically with a semi-liberal co-worker a few months back. I pointed out that gas had gotten down to the $1.60/gallon range in our area after Bush’s actions in 2008, and he just would not believe that it had gotten that cheap.

I had to dig up actual chart statistics for our area to prove my point!

It’s so frustrating when so many otherwise bright people can be so dense when it comes to issues such as these. They complain about whatever the problem happens to be, but ultimately vote in the same types of people over and over again who have so clearly caused the problem in the first place without even thinking about it…

TempestGuy on February 24, 2012 at 2:48 PM

Lost in Jersey on February 24, 2012 at 2:17 PM

Mimzey on February 24, 2012 at 2:26 PM

Thank you both. I appreciate that feedback.

ITguy on February 24, 2012 at 2:50 PM

Palin already covered this issue earlier today:

https://www.facebook.com/note.php?note_id=10150581060688435

Obama’s Anti-American Energy Policies Invite the Next Crisis

ChuckTX on February 24, 2012 at 2:52 PM

According to a recent AP/GFK poll, 58 percent of Americans disapprove of his handling of high gas prices. What’s up with the other 42 percent?

I’ll tell you what’s up with the other 42 percent. They are far-left Obama supporters who either support the Enviro Industry or work for the Enviro industry. They drive hybrid “smugmobiles” such as Volts, Leafs, Prius’s (Priae?). Or they are Limousine Libtards who are filthy rich and high gasoline costs aren’t on their radar screen (filthy rich as in they got their wealth via Crony Capitalism, not free-market capitalism).

In short, the other 42 percent don’t care about our country, don’t care about American jobs, don’t care about the American economy, and sure as hell don’t care that under their watch, the American debt has almost doubled in less than 4 years of their irresponsible incompetency.

CatchAll on February 24, 2012 at 2:54 PM

Hey, Tina. they featured this thread at http://www.ihatethemedia.com/

davidk on February 24, 2012 at 2:57 PM

Gas is up to $2.90 today, from $2.86–where I live in Colorado. Are gas prices A LOT higher in other states? If so, then WHY?

DixT on February 24, 2012 at 3:02 PM

What’s wrong with the other 42%? They don’t buy gas for themselves.

AH_C on February 24, 2012 at 3:08 PM

I had the same exact conversation practically with a semi-liberal co-worker a few months back. I pointed out that gas had gotten down to the $1.60/gallon range in our area after Bush’s actions in 2008, and he just would not believe that it had gotten that cheap.

I had to dig up actual chart statistics for our area to prove my point!

It’s so frustrating when so many otherwise bright people can be so dense when it comes to issues such as these. They complain about whatever the problem happens to be, but ultimately vote in the same types of people over and over again who have so clearly caused the problem in the first place without even thinking about it…

TempestGuy on February 24, 2012 at 2:48 PM

Im Georgia, under President George W. Bush, gasoline bottomed at $.89 a gallon, late 2002-early 2003. It was under a dollar a gallon for around six months.

We tend to forget times when it is cheap.

slickwillie2001 on February 24, 2012 at 3:16 PM

It’s inflation.

Crude priced in Gold is probably low compared to crude priced in dollars.

fatlibertarianinokc on February 24, 2012 at 3:36 PM

Not to mention the billions of dollars wasted on alternative energy sources such as Solyndra, and now the Chevy Volt. Complete failure and a wasted four years that will take much longer to recover from.

lea on February 24, 2012 at 4:12 PM

Gas is up to $2.90 today, from $2.86–where I live in Colorado. Are gas prices A LOT higher in other states? If so, then WHY?

I live in Colorado, and work in Wyoming where gas is cheaper. In Wyoming, it is now $2.99 to $3.03, so I’m sure Colorado has gone up too. State taxes can make a big difference in the price of gas from location to location.

lea on February 24, 2012 at 4:16 PM

What’s up with the other 42 percent?

Getting their gas and or transport from the teat of government no doubt.

chickasaw42 on February 24, 2012 at 4:18 PM

Gas is up to $2.90 today, from $2.86–where I live in Colorado. Are gas prices A LOT higher in other states? If so, then WHY?

DixT on February 24, 2012 at 3:02 PM

My last fill was $3.21 for premium in Colorado Springs last weekend.

dentarthurdent on February 24, 2012 at 4:21 PM

They drive hybrid “smugmobiles”

CatchAll on February 24, 2012 at 2:54 PM

LOL, love ‘smugmobiles’. Stealing it!

jclittlep on February 24, 2012 at 4:58 PM

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