WaPo: What’s going on with gas prices?

posted at 9:21 am on February 20, 2013 by Ed Morrissey

We’re in the middle of a colder-than-usual winter, with record snow storms in the Northeast and average-or-better snowfall in the Midwest.  After last year’s mild winter, temperatures have gotten much frostier in 2013.  Normally, this would lower demand for gasoline and push prices downward.  So why, the Washington Post wonders, have gas prices increased for 33 straight days, and are now approaching summer 2012 levels?

The average price of a gallon of regular gasoline has jumped 45 cents in the past 31 days, according to AAA, the fastest run-up since 2005.

Retail gasoline prices have climbed for 33 days in a row. A month ago, a gallon of regular gasoline cost $3.30; on Tuesday it stood at $3.75 nationwide.

Gasoline prices have risen to within a nickel of $4 a gallon in the District as pump prices nationwide have been marching higher — the result of refinery closures and maintenance, lower oil production by Saudi Arabia, market anxiety about tensions in Iran and Iraq, and guarded optimism about the prospects for economic recovery in the United States, Europe and China.

The timing couldn’t be worse, either, as a spokesperson for AAA pointed out:

“This is the most expensive we’ve seen gasoline in the dead of winter,” which is ususally a time of relatively low consumption, said John Townsend, a spokesman for AAA Mid-Atlantic. Noting that the increase comes just as the payroll tax cut has expired, Townsend said that “this is a double whammy for many consumers, especially on the East Coast, because many people there use home heating oil. . . . People got that shock to the system and now a shock at the gas pumps.”

In New Jersey, a single refinery closure for routine maintenance is the culprit:

Tuesday marked the 33rd consecutive day of rising gas prices across the U.S, according to a spokesman from the American Automobile Association, marking the longest run of fuel-cost increases since 2011.

According to South Jersey AAA spokesman Rich Bradley, the most recent spike in gas prices stems partly from a refinery closure in Saint Croix resulting in one million barrels of crude oil sitting idle, combined with slowdowns at 25 percent of U.S. refineries for scheduled maintenance work.

“Gas companies are also switching over from a winter blend to a summer blend, so there’s just not a lot of fuel out there, which is driving up cost,” said Bradley. “Also, there’s still the remnants of the disruption caused by (Superstorm) Sandy — that’s going to be less and less each day, but it’s still a factor.”

And when gas prices rise …

Worse yet, increasing fuel prices are expected to impact the cost of other goods and services, hitting consumers with a second punch.

How can we avoid these prices spikes in the future?  First, we could produce more of our own oil — a point recently made by several Southern governors to incoming Interior Secretary Sally Jewell.  We also need more refineries in order to provide more flexibility for maintenance scheduling and output capacity.  For both purposes, we need the EPA to back off its regulatory adventurism, and state and local governments to do the same.

Unfortunately, the former looks like a pipe dream — almost literally — in a second Obama term, even with Jewell’s experience in the oil industry.  Get used to rapidly rising fuel costs, and the associated inflation they bring.  Only another round of recession and economic stagnation will prevent it.


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Well. The market is responding to Obama’s economic policies.

Washington Nearsider on February 20, 2013 at 9:26 AM

even with Jewell’s experience in the oil industry

Why does anyone look at any potential Obama appointee as anything other than a sycophant? Obama’s not interested in opposing viewpoints, or even mildly suggestive opposing viewpoints – he wants soldiers. Anyone coming aboard will be just that, or they wouldn’t have been offered the job.

The good news on oil prices is that as crazy stock purchasers keep ballooning the market, the pop will probably come soon rather than later. So, oil prices will drop dramatically. Of course, so will GDP, but no one cares about that anymore.

BKeyser on February 20, 2013 at 9:30 AM

And yet the lsm will NOT blame dear leader like they did with W

Even Obama blamed W

Arrrgghh

cmsinaz on February 20, 2013 at 9:31 AM

I blame Bush….

mouell on February 20, 2013 at 9:32 AM

The Children are in charge.

Del Dolemonte on February 20, 2013 at 9:32 AM

“Only another round of recession and econimic stagnation will prevent it”

Hey Ed, having we been enduring this the last four years?If you are referring to a worse scenario that gives me shudders.

jeffinsjvca on February 20, 2013 at 9:35 AM

As long as people are sacrificing, the O’s are happy…

Pest on February 20, 2013 at 9:35 AM

We have the oil, we have the technology, we can finish the Keystone Pipeline, and we can build more refineries. It is the rabid left wing eco-nuts and Obooba that keep us from moving forward. Where has the outrage been at these kind of gas prices? This has been going on for 4 years and no one is screaming their heads off. If no one complains LOUDLY then I guess we are just willing to accept the lower standards of living we are headed for. Welcome to the new Amerikka. Yippee.

NJ Red on February 20, 2013 at 9:36 AM

Waiting for the hearings on the Hill to begin…just like what happened under Bush…in 3….2….1…crickets chirp!

SPGuy on February 20, 2013 at 9:36 AM

Barack Obama:

“Under my plan of a cap and trade system, electricity rates would necessarily skyrocket …”

Except its coming to fruition sooner than later because of the lack of drilling and energy resources being used, ethanol subsidies and other government regulations shrouded in bullcrap EPA regulation.

TX-96 on February 20, 2013 at 9:38 AM

I fueled up this morning and couldn’t believe the price. Guess I haven’t been paying attention, but when I purchased gas a couple weeks ago it was around $3.20. This morning? $3.85.

changer1701 on February 20, 2013 at 9:39 AM

The Children inmates are in charge.

Del Dolemonte on February 20, 2013 at 9:32 AM

Cleombrotus on February 20, 2013 at 9:39 AM

Increase in demand?

Maybe there are new regulations requiring all domestic corn products to be 10% petroleum?

ROCnPhilly on February 20, 2013 at 9:40 AM

No worries. Our 2Cs, Christie and Coulter are on it. Its NJ. They’re gonna be pumpin gas soon. /

tommy71 on February 20, 2013 at 9:40 AM

I’m going to go against the grain (slightly) and suggest that this rise is not just a supply issue, but fallout from the Fed’s QE-Infinity monetary policies. Last time I looked US oil production was fairly high.

It seems to me that pumping extra dollars into the system in the vain hope that it will spur employment is actually creating inflationary pressure. Contra Keynes, though, this pressure is hitting unevenly and is being expressed in some key sectors, oil/fuel being one of them.

My perspective is that it’s not necessarily that gas is getting more expensive, but that the Dollar is losing value against that commodity.

JohnTant on February 20, 2013 at 9:42 AM

We also need more refineries in order to provide more flexibility for maintenance scheduling and output capacity.

More refineries??? Can some one point out to me where a new refinery has gone online in the United States—-in the past 30 years! Does anyone know what the impact would be in the U.S. with just three new refineries, (running at full capacity)? Meanwhile, Obama and the Democrats are still waging war on fossil fuel production—no ANWR, no Keystone Pipeline—fed by the environmental lobby, and sucking the life out of this still fragile economy.

Rovin on February 20, 2013 at 9:43 AM

It went up yet again overnight by 6 cents at the local gas station to $3.65. And that’s after a 10 cent spike the day before and another 10 cent spike last week. How high will it have to get before we hear something other than crickets from the drive-bys? 5 bucks a gallon?

Doughboy on February 20, 2013 at 9:43 AM

Don’t forget we could get rid of all the different fuel blends. It’s unnecessary. That and new refineries are needed.

dforston on February 20, 2013 at 9:47 AM

BTW, here in Northern California, we’ve been over four dollars/gallon for weeks now—average price: $4.27 !!!

Rovin on February 20, 2013 at 9:47 AM

the Dollar is losing value against that commodity.

JohnTant on February 20, 2013 at 9:42 AM

Absolutely.

BTW: Reality is contra-Keynes.

ROCnPhilly on February 20, 2013 at 9:48 AM

And McCain is lambasting his constituents over “immigration reform.”

http://news.yahoo.com/mccain-defends-immigration-plan-angry-residents-004915369.html

The Pugs are as gutless, or in McCain’s case, more so than any dem.

Mr. Arrogant on February 20, 2013 at 9:52 AM

Ed,

You couldn’t resist. You already said that the culprit for the price rise was a lack of refining but then conclude

First, we could produce more of our own oil — a point recently made by several Southern governors to incoming Interior Secretary Sally Jewell. We also need more refineries in order to provide more flexibility for maintenance scheduling and output capacity. For both purposes, we need the EPA to back off its regulatory adventurism, and state and local governments to do the same.

Drill baby drill, regardless of the situation.

segasagez on February 20, 2013 at 9:52 AM

Don’t forget we could get rid of all the different fuel blends. It’s unnecessary. That and new refineries are needed.

dforston on February 20, 2013 at 9:47 AM

Try explaining this “unnecessary” process to Jerry Brown and the liberal Democrats in California if you care to exercise futility. It’s not going to happen.

Rovin on February 20, 2013 at 9:53 AM

More refineries??? Can some one point out to me where a new refinery has gone online in the United States—-in the past 30 years! Does anyone know what the impact would be in the U.S. with just three new refineries, (running at full capacity)? Meanwhile, Obama and the Democrats are still waging war on fossil fuel production—no ANWR, no Keystone Pipeline—fed by the environmental lobby, and sucking the life out of this still fragile economy.

Rovin on February 20, 2013 at 9:43 AM

The last oil refinery was built in 2008. More importantly though, it seems like we should focus on that side of the coin than on oil production, right? I mean, if we don’t have the capacity to refine the oil we’re producing now, why would we increase production? How would that make economic sense?

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

Every time I hear someone say, “Damn these gas prices!” I reply, “Did you vote for Obama? This is exactly what he promised.”

Funny what I get back in response…

beatcanvas on February 20, 2013 at 9:57 AM

P.S.

In November you voted to lower your standard of living.

This is the beginning.

Wander on February 20, 2013 at 9:57 AM

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

Raising hand…

I live in Houston. Yes, please. More refineries.

beatcanvas on February 20, 2013 at 9:58 AM

Is this all going to get fixed when the Republicans take over?

ss396 on February 20, 2013 at 9:58 AM

Barry is quite comfortable with $6 – $7 dollar a gallon gasoline.

GarandFan on February 20, 2013 at 9:58 AM

Raising hand…

I live in Houston. Yes, please. More refineries.

beatcanvas on February 20, 2013 at 9:58 AM

I support that. More refineries in Houston.

segasagez on February 20, 2013 at 10:00 AM

The result of having no real and serious plan on energy. Of course all that green money was well spent, right?

Bmore on February 20, 2013 at 10:00 AM

Don’t you all realize that only Republican presidents can raise gas prices? When a Democrat is in office, you see, there are market forces beyond the control of the presidency. It’s a strange phenomena called Republamea Demopassia.

jjjdad on February 20, 2013 at 10:04 AM

Is this all going to get fixed when the Republicans take over?

ss396 on February 20, 2013 at 9:58 AM

The R’s will not be taking over anything. Didn’t you get that memo. No sadly you are stuck with the most incompetent America hating President in history. We are out numbered by the dregs of society. The looters, the moochers rule the day. May they all feel the pain of this failed Presidency.

Bmore on February 20, 2013 at 10:07 AM

Strapping roller skates on a Donkey to get back and forth from work is a better plan than anything Obama has pushed forward.

Obama has already made it clear.

He wants to raise the prices of our established energy resources (oil,coal,fracking…etc.etc.) so that the unreliable, high priced and failed alternatives put forth by his green lobbyist buddies becomes more competitive and “mainstream”.

These “green” policies have already greatly contributed to bankrupting Europe to the point that they are scaling back on them dramatically.

But by all means…nothing screams “forward” like emulating the failed policies of Spain.

Baxter Greene on February 20, 2013 at 10:07 AM

I’m going to go against the grain (slightly) and suggest that this rise is not just a supply issue, but fallout from the Fed’s QE-Infinity monetary policies. Last time I looked US oil production was fairly high.

It seems to me that pumping extra dollars into the system in the vain hope that it will spur employment is actually creating inflationary pressure. Contra Keynes, though, this pressure is hitting unevenly and is being expressed in some key sectors, oil/fuel being one of them.

My perspective is that it’s not necessarily that gas is getting more expensive, but that the Dollar is losing value against that commodity.

JohnTant on February 20, 2013 at 9:42 AM

You’ve got that right. Despite the fall in gold and silver prices, there’s a stampede on right now to acquire gold and silver bullion: http://news.coinupdate.com/us-mint-temporarily-sold-out-of-silver-eagles-1815/

The US Mint just had its biggest one month sales total this ever for its silver eagle coins, coming just shy of 7.5 million.

People are clearly worried about Obama’s deliberately inflationary policies. We’re starting to look like Venezuela.

And McCain is lambasting his constituents over “immigration reform.”

http://news.yahoo.com/mccain-defends-immigration-plan-angry-residents-004915369.html

The Pugs are as gutless, or in McCain’s case, more so than any dem.

Mr. Arrogant on February 20, 2013 at 9:52 AM

The Democrats embrace their constituents; the Republicans attack them. The parallel couldn’t be more clear.

Doomberg on February 20, 2013 at 10:09 AM

Everything turns to Donkey Poo,under Hopey!

canopfor on February 20, 2013 at 10:10 AM

Everything turns to Donkey Poo,under Hopey!

canopfor on February 20, 2013 at 10:10 AM

Too bad Donkey poo won’t fuel my truck. There is such an abundant supply I could travel many , many miles. Of course as luck would have it Donkey poo is very, very expensive. ; )

Bmore on February 20, 2013 at 10:13 AM

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

Curious as to what you heat your home with, what your car runs on?

Bmore on February 20, 2013 at 10:15 AM

I want a prez candidate who runs on $2.00/gal gasoline and $0.05 KWH electricity. With fracking, it seems very doable.

petefrt on February 20, 2013 at 10:16 AM

$.45 per gallon is NINE DOLLARS for a 20 gallon fillup. That’s $18 for a two car family per week.

That’s ONE Dinner out for many that can’t be taken because it’s going to the oil companies Obama hates so much.

Remember, BIG OIL can make a profit at $45 a barrel. WE NEED refineries. A new refinery hasn’t been built in CA in 29 YEARS. How many are driving a 1984 car and putting 40,000 miles a year on it? Think OLD refineries don’t break down?

originalpechanga on February 20, 2013 at 10:17 AM

Refinery facts according to the gov.

Bmore on February 20, 2013 at 10:20 AM

Ummm… If you don’t want to live near an oil refinery, then don’t buy/rent a house there.

Same with airports, penitentiaries, pig farms, railroad tracks, blah blah blah

petefrt on February 20, 2013 at 10:21 AM

The site is actually worth a tumble.

Bmore on February 20, 2013 at 10:22 AM

petefrt on February 20, 2013 at 10:21 AM

Lol! You left off paper mills. ; )

Bmore on February 20, 2013 at 10:24 AM

Bush’s oil buddies?

thebrokenrattle on February 20, 2013 at 10:25 AM

The last oil refinery was built in 2008. More importantly though, it seems like we should focus on that side of the coin than on oil production, right? I mean, if we don’t have the capacity to refine the oil we’re producing now, why would we increase production? How would that make economic sense?

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

I do think more refineries are important, yes. I would also not have much problem having one near my house and would probably not be afraid to buy housing near one. If anything, it might help me get a discount buying a house due to peoples’ fears.

Doomberg on February 20, 2013 at 10:26 AM

Bmore on February 20, 2013 at 10:24 AM

Phew, most of all, paper mills. I remember one in VA you could smell 15 miles down wind.

petefrt on February 20, 2013 at 10:27 AM

We can produce the entire worlds supply of oil and if government doesn’t allow or mandate enough refining capacity to cover needs including shut downs, then prices will always be high.

Just like they were before 33 days of increases.

Speakup on February 20, 2013 at 10:30 AM

Bush, Cheny, Halliburton, Oil Buddies don’cha know?

philoise65 on February 20, 2013 at 10:31 AM

WaPo: What’s going on with gas prices?

…the igauguration was last month!…F Y people !…I’m golfing …Mooch is skiing!…F O and inhance my revenue…get to work…walk to work!

KOOLAID2 on February 20, 2013 at 10:35 AM

The real question is, why did gas prices fall so sharply just a few weeks before the election? Coincidence?

dkmonroe on February 20, 2013 at 10:37 AM

They made a deal with Obama to keep prices low during the election. Prices have been climbing since inauguration day and Obama isn’t even pretending to threaten them with the usual strategic reserves hoax. Obama is Big Oil’s best friend. Everything he does seems designed to increase their profits. The electric cars and such are meaningless red herrings designed to throw off the scent.

The last thing the big oil companies want is for the US to open up new lands for drilling.

Buddahpundit on February 20, 2013 at 10:52 AM

What’s going on with gas prices?

Hey, idiots, the election’s over. No need for low priced gas now.

CJ on February 20, 2013 at 10:53 AM

dkmonroe on February 20, 2013 at 10:37 AM

.
That IS a good question.

Beyond that, I believe it’s mostly due to the U.S. Dollar going DOWN.

listens2glenn on February 20, 2013 at 10:56 AM

The last thing the big oil companies want is for the US to open up new lands for drilling.

Buddahpundit on February 20, 2013 at 10:52 AM

.
So … the stockholders of petroleum companies are doing better ?

listens2glenn on February 20, 2013 at 11:00 AM

Freedom Works has a petition to stop the EPA’s new regs coming in May that will impose even worse energy restrictions on dishwashers.

Maybe they can set one up for refineries and pipelines too.

Note that none of the media ever talk about WHY refineries are going off line. Don’t want to offend our enviro priests!

And what the hell is the GOP doing? Can’t they put the brakes on these insane bureaucrats?

PattyJ on February 20, 2013 at 11:13 AM

Obama, controlled by the oil cartel…at least that is what they would say if he was a Republican…

right2bright on February 20, 2013 at 11:17 AM

The last thing the big oil companies want is for the US to open up new lands for drilling.

Buddahpundit on February 20, 2013 at 10:52 AM

The last thing anyone should listen to is you…and your expertise in oil, besides changing the oil for the french fries, is what?

right2bright on February 20, 2013 at 11:18 AM

We also need more refineries in order to provide more flexibility for maintenance scheduling and output capacity. For both purposes, we need the EPA to back off its regulatory adventurism, and state and local governments to do the same.

Bingo Ed. Clearly refinining capacity is a choke point, and with the EPA now determining much of our economy, the prospect of additional capacity, and even (gasp) more competition is bleak

JusDreamin on February 20, 2013 at 11:22 AM

fossil fuel

Oil is not a “fossil fuel”.

Oil does not come from fossils, it is produced on an ongoing basis in the Earth.

Oil is a “biofuel”, and is “sustainable”.

Prove me wrong. Prove to me how oil is made. Prove that it is a “fossil” fuel, and not a “bio” fuel. Prove to me that oil is not renewable and sustainable.

I remember being lectured in the 70′s that we were running out of oil. That was false then, and it’s false now.

The left has been lying for decades about the supposed scarcity of, and ficticious “Global Warming” impact of, oil.

We have proven oil reserves that are multiple times the amount of Saudi Arabia’s. Yet we make them rich, and oursevles poor, by sending our money over there in return for their oil.

Open wide our production of, and refining of, oil, and watch the U.S. economy boom like you’ve never seen in your lifetime.

ITguy on February 20, 2013 at 11:26 AM

Oil is not a “fossil fuel”.

Oil does not come from fossils, it is produced on an ongoing basis in the Earth.

Oil is a “biofuel”, and is “sustainable”.

ITguy on February 20, 2013 at 11:26 AM

Oil is a fossil fuel.

segasagez on February 20, 2013 at 11:38 AM

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

Curious as to what you heat your home with, what your car runs on?

Bmore on February 20, 2013 at 10:15 AM

I have a natural gas burner at home, but I get your point.

My point is that it’s easy to say “we need more refineries”. It’s harder to get people to accept them being built in their back yard.

segasagez on February 20, 2013 at 11:39 AM

Oil is a fossil fuel.

segasagez on February 20, 2013 at 11:38 AM

Prove it.

ITguy on February 20, 2013 at 11:53 AM

I see a lot of people are complaining of gas prices in the high three dollar/gallon range. Here in the San Diego region we’re running around $4.25 as of yesterday when I filled the tank. And that was at the local discount station.

hachiban on February 20, 2013 at 12:01 PM

How important is it to Drill and Refine HERE?

Look at this survey of gas prices around the world in 2010, and look at how those who pay the least are those who produce and refine their own oil…

Here’s what a gallon of gas goes for in the 34 cities around the world that AIRINC surveyed:
(As of June 30, 2010)

1. Asmara, Eritrea | $9.59

2. Oslo, Norway | $7.41

3. Copenhagen, Denmark | $6.89

4. Hong Kong | $6.87

5. Berlin, Germany, and Monaco, Monte Carlo | $6.82

6. London, U.K. | $6.60

7. Rome, Italy | $6.44

8. Paris, France | $6.04

9. Sao Paulo, Brazil | $5.69

10. Seoul, Korea | $5.55

11. Tokyo, Japan | $5.40

12. Singapore, Singapore | $4.81

13. Nairobi, Kenya | $4.31

14. Mumbai, India | $4.25

15. Santiago, Chile | $4.18

16. Johannesburg, South Africa | $4.05

17. Sydney, Australia | $3.84

18. Toronto, Canada | $3.81

19. Beijing, China | $3.71

20. Bangkok, Thailand | $3.64

21. Buenos Aires, Argentina | $3.58

22. Havana, Cuba | $3.64

23. Karachi, Pakistan | $3.02

24. New York, U.S. | $2.85

25. Moscow, Russia | $2.80

26. Mexico City, Mexico | $2.45

27. Lagos, Nigeria $1.62

28. Dubai City, United Arab Emirates $1.57

29. Cairo, Egypt | $1.17

30. Kuwait, City, Kuwait | 85 cents

31. Riyadh, Saudi Arabia | 45 cents

32. Tehran, Iran | 32 cents

33. Caracas, Venezuela | 6 cents

ITguy on February 20, 2013 at 12:05 PM

The last oil refinery was built in 2008. More importantly though, it seems like we should focus on that side of the coin than on oil production, right? I mean, if we don’t have the capacity to refine the oil we’re producing now, why would we increase production? How would that make economic sense?

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

How many have closed since 2008.

RickB on February 20, 2013 at 12:05 PM

Oil is a fossil fuel.

segasagez on February 20, 2013 at 11:38 AM

Prove it.

ITguy on February 20, 2013 at 11:53 AM

It can’t be proven. It’s a theory that has a significant amount of evidence that supports it. Similarly Abiogenic petroleum theory is just that. A theory.

The difference is that biogenic theory has led to actual discoveries of oil while abiogenic as not.

You can choose what to believe, but there’s a reason why oil companies use biogenic theory and WND chooses the latter.

segasagez on February 20, 2013 at 12:07 PM

How many have closed since 2008.

RickB on February 20, 2013 at 12:05 PM

I don’t know. How many?

segasagez on February 20, 2013 at 12:10 PM

Time to release the Kraken Strategic Oil Reserves – Typical Dem.

RickB on February 20, 2013 at 12:11 PM

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

An your car runs on unicorn farts?

itsspideyman on February 20, 2013 at 12:13 PM

And just pertinent, raise your hand if you want to live near an oil refinery.

segasagez on February 20, 2013 at 9:56 AM

An your car runs on unicorn farts?

itsspideyman on February 20, 2013 at 12:13 PM

How far is the closet oil refinery to you?

segasagez on February 20, 2013 at 12:15 PM

I see a lot of people are complaining of gas prices in the high three dollar/gallon range. Here in the San Diego region we’re running around $4.25 as of yesterday when I filled the tank. And that was at the local discount station.

hachiban on February 20, 2013 at 12:01 PM

$4.29 this morning in Chula Vista. And I picked the cheaper of 3 stations. I fully expect prices over $4.50 soon, and this stings badly, I have NO other options for commuting, the wife and I are already damn frugal when it comes to driving, no way we can make up the difference with less miles, and I am sure there are many, many folks in the same boat. Already seeing the effect at the grocery store as well.

And yes, we (meaning not me)voted for this, over and over.

JusDreamin on February 20, 2013 at 12:26 PM

It’s OK…

… Obowma will never pay for gas for the rest of his life.

Don’t you feel better…?

Seven Percent Solution on February 20, 2013 at 1:00 PM

biogenic theory has led to actual discoveries of oil while abiogenic as not.

You can choose what to believe, but there’s a reason why oil companies use biogenic theory and WND chooses the latter.

segasagez on February 20, 2013 at 12:07 PM

My point is that oil is a “biofuel” not a “fossil” fuel.

fos·sil [ fóss'l ]

1.preserved remains of animal or plant: the remains of an animal or plant preserved from an earlier era inside a rock or other geologic deposit, often as an impression or in a petrified state

Oil is produced on a daily basis in the Earth. It is a current, biogenic process. Not a process from an earlier era using “fossils”.

The name “fossil fuels” is a terrible misnomer.

Oil is a renewable biofuel.

Oil wells that were abandoned decades ago because they had “gone dry” now mysteriously have oil in them again. Where did that oil come from? It didn’t come from “fossils”.

Oil is a renewable biofuel.

ITguy on February 20, 2013 at 1:15 PM

A comment I submitted roughly an hour and a half ago has still not appeared. I don’t have a clue what might have sent it to moderation. I’ll try to resubmit some of the material, but don’t beat me up if the earlier comment is later released, making the following comment redundant…

ITguy on February 20, 2013 at 1:21 PM

the price has nothing to do with supply and demand for oil. It’s the financial market for oil, filled with both professional speculators and amateur investors betting on poorly understood oil exchange-traded funds, who have ratcheted up the price of gas to such sky high levels.

“There is no supply issue going on here – what you have is the perception of the possibility of a supply issue,” Dicker says. “A whole bunch of people are pouring money into an oil market trying to take advantage of what they perceive to be a real risk in supply. It’s a marketplace that I argue should not be allowed to be wagered on like a stock or bond.”

Among the biggest winners of the new oil markets are investment banks like Goldman Sachs… In 2004 and 2005, Goldman Sachs made $1.5 billion a year trading oil, Dicker says. In the first half of 2009 alone, the firm made $3.4 billion oil trading profits.

ITguy on February 20, 2013 at 1:22 PM

Take a look at:

http://data.bls.gov/timeseries/APU000074714
Consumer Price Index – Average Price Data
Series Id: APU000074714
Area: U.S. city average
Item: Gasoline, unleaded regular, per gallon/3.785 liters

Here are some facts about the U.S. city average price of unleaded regular gasoline in 2008:

January 2008: $3.047 per gallon

July 2008: $4.090 per gallon

December 2008: $1.689 per gallon

The electorate was up in arms about the 30% increase in gas prices between January 2008 and July 2008. There was a “Tea Party” like reaction at the time (you could even call it the “‘Texas Tea’ Party” because it was over the price of “Texas Tea”, i.e. oil).

So, what are some of the factors that led to the price of gasoline DROPPING an amazing 59% in just 5 months, from $4.090 per gallon in July 2008 to $1.689 per gallon in December 2008?

Here are some significant data points:

July 14, 2008: President Bush lifted an executive order banning offshore oil drilling, and urged Congress to follow suit. President Bush also called for exploration of Alaska’s Arctic National Wildlife Refuge (ANWR).

September 16, 2008, the House approved on a 236-189 vote legislation that would open waters 50 miles off the Pacific and Atlantic coasts to oil and natural gas development.

September 27, 2008, the U.S. Senate by a 78-12 vote eliminated a 27 year ban on offshore drilling off the Atlantic and Pacific coasts of the United States.

Open up supply, remove any “perception of the possibility of a supply issue”, and the price of gas dropped nearly 60%!!!

So who do we have to thank for gas prices approaching new record highs?

Barack Obama for his illegal moritorium.

Barack Obama for his illegal war in Libya.

Barack Obama for his Middle-East policies.

Barack Obama and Democrats in general who seem do be doing everything they can to stand in the way of U.S. oil production and refining.

Do you want to see gas prices drop by more than 50%?

Allow us to DRILL & REFINE HERE! DRILL & REFINE NOW!!!

ITguy on February 20, 2013 at 1:25 PM

by John Nolte 20 Feb 2013, 9:33 AM PDT

Hot Air’s Ed Morrissey helps to clear up the “Washington Post’s” confusion over the startling 45 cent rise in gas prices in a single month. What’s also of interest, though, is a word found nowhere in the “Post’s” 750-worder; and that word is “Obama.” Not once does the “Post” question, examine, or consider how White House policies or lack of policy might be exploding the price of a gallon of gas.

…nowhere does the “Post” mention the calls (mostly from the right) to build more refineries that would offset these fairly regular and predictable maintenance shut downs. And who blocks those calls? The left.

What about the president blocking the Keystone Pipeline? What about ANWR? If you recall, one of the primary arguments against drilling in ANWR was that it would take 10 years before production would affect the price of a gallon of gas. That was over 15 years ago…

ITguy on February 20, 2013 at 2:12 PM

This is Obama’s dream for America. This is what the idiots voted for and now you have it. How’s that working a min. wage job paying $4.75+ for gas. Leaves you with a lot of spending money doesn’t it idiots. Oh hey let’s keep the Keystone Pipline in storage! Get job liberals!!!

karlinsync on February 20, 2013 at 2:15 PM

How far is the closet oil refinery to you?

segasagez on February 20, 2013 at 12:15 PM

It’s in Lake Charles, Louisiana, about 200 miles from me. Lived in Lafayette, only 50 miles away. Gas prices pretty good here. Plus jobs, average salaries 50-70,000. When the Keystone is finished they’ll be a boom down here. We’ll take any kind of unskilled laborer.

Even you.

itsspideyman on February 20, 2013 at 2:34 PM

ITguy on February 20, 2013 at 11:26 AM

ITguy is gay, prove that you are not.

All crude oil & natural gas produced has had a biological marker origin. Morons think in terms of dinosaurs yet we see it being made offshore the mouths of rivers where 10 feet thick layers of dead phytoplankton lay on the ocean floor. This in turn is gets covered with sediment and over time may or may not become oil or natural gas. It is not about plant leaves or carcases of ancient land dwelling mobile animals and reptiles.

Hydrocarbons have been made in laboratories out of the basic elements, but no were else has this been observed. Is it possible to be made by the earth itself? Yes. Has it happened? No.

Kermit on February 20, 2013 at 3:34 PM

The price spikes are also due to switching the blend of oil from winter to summer. More government overreach in the free market system. The regulatory imbeciles can’t make a connection between the onerous requirements to have multiple various blends in different parts of the country and the resulting fuel shortages/higher prices. Of course, since they don’t want prices to be down anyway, it just meets their goal of forcing poor people off the road since they can’t pay the high prices for fuel and justifying economically the energy efficient vehicles that only the “rich” can afford. Another case of the progressive agenda hurting the people that liberals profess to be fighting for.

nitram on February 20, 2013 at 3:40 PM

For a number of months there has been a gasoline glut in the U.S. with refineries themselves losing money daily. That is why the price has been down, no other reason.

Keystone XL would bring a blend of produced very heavy crude oil from Canada’s Tar Sands region and synthetic crude oil from upgraders which remove the asphaltenes and the sulfur from strip mined deposits near the surface. This blend is just right for refineries presently configured for heavy and very heavy crude sources which mostly are on the Gulf and West Coasts.

I would not mind seeing Enbridge complete its already approved expansion from Canada to IL which would connect with Capline. Capline, if reversed, could bring an additional 1.2 million barrels per day (quite a bit more than Keystone XL, though a round about way) to the Gulf Coast at St. James, LA.

Now it is not just Keystone XL, the present pipeline infrastructure is in a bit of disarray due it being configured for importing crude oil from the coast to inland, and different types of crude than what is being produced from various shale plays inland.

Not all crude oil is the same. Not all crude oil refineries are configured the same.

Kermit on February 20, 2013 at 3:43 PM

nitram on February 20, 2013 at 3:40 PM

Not the change in oils, but the need to change out catalysts in the reactors. That costs money. In some states (such as California) there are even “boutique” gasoline standards for each metro and partial metro area.

Kermit on February 20, 2013 at 3:49 PM


Only another round of recession and economic stagnation will prevent it.

Wow. By a sheer coincidence, we are about to enter one of those thanks to Obamacare.

Theophile on February 20, 2013 at 4:31 PM

Perception is reality.
If it is perceived that the president hates fossil fuels and he sicks the EPA attack dogs out to maul the oil business within the continental United States, then, oil prices will rise. Limit the supply, increase the demand.

If it is perceived that the president hates refineries and will not increase gasoline/fuel production inside the continental United States, then, gas prices will rise. The Hess refinery in New Jersey is shutting down.

If it is perceived that the president is so in love with selling Chevy Dolts, therefore, he flat out refuses to sign off on the Keystone pipe line … drip, drip, drip.

Now ask yourself … why are energy prices being artificially inflated?
Answer: So that fossil fuels will rise to the same lofty costs as the demon-crats beloved “green energy.”
We have now reached the law of intended consequences.

kregg on February 20, 2013 at 5:21 PM

Maybe gasoline prices are rising because they were way too low just a couple months ago. Refiners were producing a lot of distillate fuels like diesel and heating oil because they in great demand this time of year. But at the same time they had to produce gasoline and then dump it on the market for whatever price they could get.

Now a lot of refineries are going through routine maintenance shutdowns before they start producing summer-blended gasoline, and the oversupply of gasoline is expected to abate.

Refineries produce gasoline and distillate fuels in a roughly fixed ratio of 2:1. They cannot quit producing gasoline just because there is too much of it, without also stopping the production of distillates.

Often, the future markets will make it possible to store surpluses. But with different formulas for different times of the year, winter-blend gasoline isn’t as useful in the spring and summer, so there is no reward to putting it into storage. Ergo, it gets dumped on the market and the price goes way down for a few months.

J Baustian on February 21, 2013 at 1:09 AM