Obama prepares to fight gas prices with new bumper sticker

posted at 4:30 pm on February 26, 2012 by Jazz Shaw

People are increasingly concerned about the possibility of crippling gas prices this summer, perhaps none more so than Barack Obama. And you can rest assured that he’s getting ready to do something about it. His plan? We’re going to figure out a solution which involves a new way to talk about it.

President Barack Obama will try to head off the political impact of rising gasoline prices as Republicans vow to make the price at the pump an issue in the 2012 election campaign.

Obama this week plans events focusing on his administration’s efforts to expand domestic exploration and development of alternative energy sources to combat cyclical spikes in gas prices.

Obama’s political team has been preparing to counter Republican attacks since the administration denied a permit for TransCanada Corp.’s Keystone XL oil pipeline, White House officials said. The renewed focus on what Obama has described as an “all-of-the-above” energy strategy kicks off with a speech tomorrow at the University of Miami.

So basically our response to rising gas prices is to figure out a way to talk about it differently. Well… now that that’s all sorted out I guess we can move on to finally developing those flying cars.

Obama almost deserves some sympathy here because he’s caught between something of a rock and a hard place. His approach – crafted in meticulous talking points – focuses on two aspects of the energy issue, neither of which are going to do much to help his prospects. The first will be his repeated call for more alternative energy supplies. Sadly, these primarily deal with generating more electricity, which is nice, but doesn’t address our need for bulk liquid fuels. (OK… the algae kind of, sort of will someday.. maybe.)

The second and more pressing issue is the raw supply of gasoline which, of course, rides on the supply of oil. Obama will claim that he’s doing what he can to open up domestic drilling options. (Unfortunately ignoring that the permits currently in circulation still can’t touch 85% of our combined onshore and offshore potential.) But the real fly in the ointment is the fact that even if we modestly bumped up our domestic crude production, the downstream effect is completely muted by the fact that everyone is fighting to supply a global market, not just our needs in the US. This is explained at length in a recent article from Joe Weisenthal.

NOTE: The global market argument is valid, but Joe also discusses domestic refinery capacity. His view on this should, for the moment, be taken with a grain of salt. We’ll have more on American refinery capacity later this week.)

  • Demand is booming in Asia and the Former Soviet Union, offsetting mediocre demand in US and Europe.
  • Inventories are low.
  • Supply has been hit in several countries due to geopolitical and technical problems.
  • To some extent, all of the above has been a modest surprise to the market, at least as compared to official predictions.

Add in some kind of “fear” premium due to a possible war with Iran, and it’s just not that hard to see why the price of a barrel of oil has surged like this.

So basically, external demand continues to grow even when domestic demand dips. And we don’t just sell our refined petroleum products at home… we sell them to whoever will pay the going price which is set by demand. It would take a massive surge in domestic production to move that needle very much. Combine that with the fact that day to day oil prices are frequently driven by speculation and nervous nellies who react to things like Iran threatening to shut down the straits, and you’ve got a recipe for rising prices per barrel.

Still, corrective actions can be taken, both in short term foreign policy efforts and long term domestic supply improvements. But it’s going to require more than a new way to blame somebody else.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2 3

I suggest Barry Hussein’s bumper stickers say this:

Obama 2012: Can’t Afford to Fill Your Gas Tank? You Should Be Thanking Me, America!

AZCoyote on February 27, 2012 at 10:01 AM

To Obama “all of the above” doesn’t seem to include oil. Maybe we should find him some cronies in the petroleum industry, so he could funnel leases, loans, and contracts to them like he does for the solar and wind industries.

hawksruleva on February 27, 2012 at 10:08 AM

I’ve seen a few sticky notes on the pumps here in STL.

I always audibly thank Obama for my price at the pump. $3.65 and rising.

Thank you democrat voters!

tom daschle concerned on February 27, 2012 at 10:12 AM

Bumper Sticker?

Obama as Alfred E. Neuman. What me worry? Next to a picture of a gas pump.

Marcus Traianus on February 27, 2012 at 10:16 AM

So now he has an “all of the above plan”, with nuclear, oil, gas, coal, and everything.

Right. That was what he claimed when he ran for President the first time.

Of course, he also said he would “look at” nuclear power (translation; but do everything possible to block it, starting at Yucca Mountain), “bankrupt” anybody trying to operate a coal-fired powerplant, and then made “cap and trade” the centerpiece of his energy policy, which, by all indications, it still is (even after ClimateGate and the recent Gleick scandal). Which is why his answer to the higher fuel prices (which he wanted- just not so fast) is supposedly algae. We are supposed to believe that a technology still in its infancy (and yes, I’ve read the literature) will reach IOC faster than drilling in the areas the President declares off limits.

If I could meet him face to face, I would start the conversation with, “Mr. President, either you are a very stupid individual or you must think the rest of us are morons. Which is it, exactly?”

There are only two possibilities here. Either the President is a delusional idiot, or he is a doctrinaire’, far-left, anti-technology ideologue who is also a compulsive liar. They can generally be spotted by the frequency with which they contradict their previous statements without actually realizing they’ve done so. Or else just hoping everybody else has a short memory.

Here’s something everyone should remember. This President’s “promises” and “initiatives” all come with built-in expiration dates, usually going off after he no longer needs them for good PR.

I predict this set of promises will expire about three nanoseconds after he’s re-elected in November, if in fact he is.

clear ether

eon

eon on February 27, 2012 at 10:17 AM

Obama almost deserves some sympathy here because he’s caught between something of a rock and a hard place. His approach – crafted in meticulous talking points – focuses on two aspects of the energy issue, neither of which are going to do much to help his prospects.” – Jazz

Excuse me?
Any “sympathy” of any sort should go to those who can’t afford the gasoline, electricity, etc, and the tens of thousands of skilled workers who are being ignored, wallowing in sorrow, shame, and depression.
The “leader of the free world” would just as soon bury us as he pretends to be competent.
Just UndØ it.

~(Ä)~

Karl Magnus on February 27, 2012 at 10:30 AM

When the Big O speaks, we get lots of gas.

TimBuk3 on February 27, 2012 at 10:34 AM

When a Republican is in charge, any increase of any kind in the cost of any product or service or any dip in the stock market is an abject failure of leadership and he must go. Any decrease in the exponential growth of social programs is evil and will lead to the death of the elderly/children/animals/oceans.

With Obama in charge, well, you know gas prices are what they are. The economy is cyclical and business cycles dictate prices. Hey, come on, he’s just the POTUS, he doesn’t really create jobs or have an impact on the economy. Give the guy a break.

Am I missing something or is there a bit of a double-standard going on? It can’t be from any media bias, right?

smfic on February 27, 2012 at 10:45 AM

“$5 gas? Mission accomplished!”

EddieC on February 27, 2012 at 11:03 AM

Barry should be algea.

rjulio on February 27, 2012 at 11:04 AM

Obama gave us unemployment so about 6 million people don’t need to buy expensive gas to drive to work.

See how he is saving them money?

seven on February 27, 2012 at 11:16 AM

Obowma has acted stupidly…..and American’s that voted for this tool did as well.

dthorny on February 27, 2012 at 11:18 AM

Word is that George Will has finally completely lost it or a foul ball finally caught him drowsing.

Apparently on This Week Will’s bow tie wasn’t the only thing spinning as he was telling ABC’s notorious Clintoon and DNC hack George Stuffinenvelopes that it was “preposterous” to use oil prices as a campaign issue.

George Will could learn a lot from Gulf States oil producers of how Zero has screwed Gulf of Mexico oil production, exploration and development. George Will could learn a lot from Keystone pipeline states of how Zero has screwed that oil supply development project to favor / payback his notorious contributor Warren “Union Pacific” Buffett.

viking01 on February 27, 2012 at 11:22 AM

HA!! Suckers!! I ain’t payin’ any more at the pump! That’s thanks to my handy dandy, magic Obama tire pressure gauge! Between that little wonder of technology and algae, I’ll be getting 25 to 30 miles per gallon! Oh, wait. That’s what I was getting before. Oh well, never mind. I’ll go back inside and see if the Leader of the Free World has any more brilliant ideas.

http://www.time.com/time/politics/article/0,8599,1829354,00.html

PorchDawg on February 27, 2012 at 11:22 AM

We’ll see how Barry’s bumper stickers fare against gas pump sticky notes.

RebeccaH on February 27, 2012 at 11:29 AM

There was a bumper sticker in 1980 that read:

Vote for Omar Torrijos
The best president we ever had!

That was after Jimmuh Cottuh gave the Panama Canal back to the LIPs.
General Torrijos was a corrupt, Panamanian goon.

~(Ä)~

Karl Magnus on February 27, 2012 at 11:40 AM

HOPE: I can afford to fill up.
CHANGE: None after I do.

buckeyerich on February 27, 2012 at 12:35 PM

onlineanalyst on February 27, 2012 at 12:24 AM
-
Undeserved but thank you. %-)

diogenes on February 27, 2012 at 1:10 PM

talk about it differently

Duhhhh! That’s been the strategy of this Prezuhdunce from moment one of his first campaign. If what he said yesterday gets panned, he talks about it differently today. If what he proposed yesterday gets turned down, today he claims he meant something different. If what he did yesterday fails miserably as just about everything he’s done has, he talks about it differently today, even to the extreme of denying that he did what he did or that what he did even failed.

stukinIL4now on February 27, 2012 at 4:55 PM

Comment pages: 1 2 3