28 Feb

Why Barack Obama doesn’t care that you’re paying $5 a gallon for gasoline [Reader Post]

Because he doesn’t pay for gasoline of course. But that’s not it.

Despite his protestations to the contrary, Barack Obama thinks you’re stupid. Gasoline prices are 90% higher today than they were when he took office and he wants you to think he has nothing to do with it. At the same time however he wants you to give him credit for the fact that imports make up the lowest percentage of US energy usage in years.

The President reminds me of the “Magic Grits” scene from My Cousin Vinny; where perhaps the laws of economics cease to exist on Obama’s watch. Unfortunately for America, they don’t.

It is accurate that American energy imports are down and production is up since Obama took office. Contrary to the President’s spin however, it’s in spite of his actions, not because of them. Last year oil production on state and private land (where the feds have less influence) was up by 14% and 12% respectively. On federal lands, you know, the ones that President Obama controls… down 11%. At the same time, during the last quarter of 2011, permitting for drilling in the Gulf fell off a cliff. Then of course there is the languishing economy that reduces demand for oil in the first place. Not to mention a mild winter and a surge of natural gas production, that is, again, overwhelmingly on private land. Add those things up and you simply have less demand overall and a smaller need for foreign oil

Now to gas prices. The single biggest factor in the price of gasoline in the United States is the cost of oil. Oil is denominated in dollars which means that when you print lots more money – as the fed has been doing with Obama cheerleading – the price of stuff denominated in dollars tends to increase. Then there is the unrest in the Middle East, a Saudi production cut and the increasing (but ever more slowly) demand from China and India. Why do these things matter? Because all of these factors tend to drive up the price of crude oil, and crude makes up about 76% of the price of a gallon of gasoline today, up from a historic average closer to 65%.

So back to the President. It’s higher oil prices that translate into higher gasoline prices – as opposed to the price gouging by Big Oil which is what the President would have you believe. Enraged, the President tells us he’s been working to bring down gas prices. How? His answer is to reduce demand for gasoline by pouring billions of taxpayer dollars into green energy boondoggles while simultaneously putting the brakes on exploration and development on federal lands. Oddly that strategy hasn’t worked. Prices are the highest they’ve ever been at this time of the year. Is it possible that our 4th best president failed Econ 101 and that this is all just a terrible mistake? Actually no. Just listen to candidate Obama from January 2008: “Under my plan, electricity rates would necessarily skyrocket”. So, it turns out he actually does know what he’s doing, only right now he’s doing it with gasoline. He’ll have you driving an electric brick within five years if it’s the last thing he does!

Five dollar a gallon gasoline is the result of Barack Obama’s desire to have the American people foot the bill for his gullibility in the face of the global warming hoax. That is a key element in his long term goal: To join the likes of Alexander the Great, Julius Caesar, Napoleon, George Washington and others in the pantheon of great men on the stage of history. Not sure? Remember this: “This was the moment when the rise of the oceans began to slow and our planet began to heal”?

Of course the price you pay for his grandiosity is found in much more than just gasoline. Oil and energy play a role in virtually every aspect of the economy, from food to transportation to chemicals and virtually everything else, like stuff packaged in plastic, products made out of metal, commodities that need to be excavated or buildings that need to be heated. It may not be easy to see, but the price of oil and gasoline impact everything in the economy. As a result, just when consumers need a little more money in their pocket to spend, inflation is inching back up. Believe it or not, that’s just fine with President Obama.

Why? Polls tell the story. Despite the fact that gas prices are up 90% on his watch; despite the fact that there are millions fewer Americans working than when he took office; despite the fact that he’s added $5 trillion to the national debt in a mere 3 years, President Obama leads whoever the flavor of the week GOP candidate is in virtually every poll.

Unfortunately the electoral math is pretty simple. Fifty percent of Americans pay no income taxes. There are 2.1 million federal employees who love the fact that they earn average salary and benefits of $123,000 per year, double the civilian workforce. There are 14 million state and local employees, half of whom are teachers and many of whom are in unions making more than their civilian counterparts. None of these constituencies are particularly interested in getting rid of Barack Obama and potentially destabilizing their gravy trains. Add to that the fact that blacks (who make up 12% of the population) tend to vote Democrat at a 9 to 1 or more ratio regardless of the consequences and the idea that $5 gasoline will somehow undo Barack Obama is pretty hard to imagine.

The reality is that Barack Obama doesn’t need to get rid of $5 gasoline to become reelected. He simply needs to use it as a foil with which to pillory his opponents and demagogue corporate profits. At the end of the day $5 gasoline is not a net negative for Barack Obama. It allows him to play the populist advocate who is seeking to break the stranglehold big business in general and Big Oil in particular have on the American people. Populist messages sell, particularly to those who are warm and comfy in the swaddling clothes of government largess and who don’t want to be forced to stand up and venture out in the world and actually take care of themselves.

About Vince

The product of a military family, growing up in Naples, Italy and Guantanamo Bay, Cuba, and being stationed in Germany for two years while in the Army, Vince spent half of his first quarter century seeing the US from outside of its own borders. That perspective, along with a French wife and two decades as a struggling entrepreneur have only fueled an appreciation for freedom and the fundamental greatness of the gifts our forefathers left us.
This entry was posted in Barack Obama, Baracks Broken Promises, Economy, Energy, Environment, Obamanomics, Oil, Politics and tagged , , , , . Bookmark the permalink. Tuesday, February 28th, 2012 at 2:00 pm

18 Responses to Why Barack Obama doesn’t care that you’re paying $5 a gallon for gasoline [Reader Post]

  1. johngalt says: 1

    It’s all about gaining control of the dialogue. Of being the one whose words define the issue. And with the help of a complicit MSM, Obama’s, and the lib/progs, jobs are that much easier. Obama tells the masses that the “Evil Oil Companies” are to blame for the high price of gasoline, and the useful idiots believe him. They aren’t interested in hearing about the truth. They don’t care about facts. Econ 101 doesn’t mean a damn thing to them. As long as they have someone to blame, and as long as Obama and the rest of the elites point towards the link between that someone and the GOP, Obama’s reelection is all but guaranteed, and the useful idiots will provide the applause in the background as they line up for their new shackles.

  2. Greg says: 2

    How long have people been warning us that $5 a gallon gasoline is inevitable?

    Gasoline prices will fluctuate, but the overall trend will remain upward. That’s been the case for decades. The trend won’t reverse, because world demand will remain ahead of any world production increases.

    According to the International Energy Agency, the point of maximum global oil production–peak oil–was reached and passed in 2006. Overall global production will trend downward from that point forward, while demand will increase as the global economy recovers from the 2008 crash, and with increasing Third World industrialization.

    If anyone thinks Mr. Mittens or Saint Rick have a magical solution to eliminate that unfortunate reality, they’re dreaming.

    Oil shale? There’s been some breakthrough that suddenly makes that cheap on the large scale? Or that would somehow supply the enormous quantities of required water, and deal with the enormously negative environmental consequences? People talk as though solutions have been found. But try to find out what, and you’ll be looking for a long time.

  3. liberalmann says: 3

    Sorry John, it’s ‘useful idiots’ like you who are lapdogs for the oil companies who show record profits and continue to get tax breaks.

    Oil exploration and drilling are up 340% under Obama. And up from the negaitive figures under Bush, oil exports are up 8%. It’s now our biggest export.

    Bet a clue. The President has no involvement in the price of gas. But the GOPs constant sabre rattling about invading Iran sure can send it skyrocketing.

  4. MataHarley says: 4

    Well, Vince, I do think that $5 gal gas will hurt the Zero. He will indeed shift the cause/effect erroneously to those nasty big oil execs, and the gullible will believe him.

    However excuses and demonization aren’t a solution, and every one – regardless of political stripes – is going to feel the effects of $5 or $6 gas prices. Not only in the fill up at the pump, but at every store and in every product price increases across the board.

    This will continue to depress and already depressed “recovery”… and that won’t fly with the nation, no matter how soaring the rhetoric, and how popular a sport it is to blame the Big Oil devil.

    That said… the Dems and specific demographics will continue to vote Obama… even when PO’ed at him. And the GOP will have their demographics vote as usual. There’s nothing new about the swing voters being the deciding factor in elections.

    And the swing voters aren’t going to be silently swallowing the Obama blame game. They will be looking for those that are presenting solutions instead.

  5. Brother Bob says: 5

    Now everybody, feel free to drop hints but don’t do Greg’s and liberalmann’s homework for them – let them figure out what is wrong with their statements. Otherwise how will they learn?

  6. bbartlog says: 6

    ‘Gasoline prices will fluctuate, but the overall trend will remain upward. That’s been the case for decades. The trend won’t reverse, because world demand will remain ahead of any world production increases.’

    Your decades-long trend is an illusion caused by monetary inflation. Try this chart: http://inflationdata.com/inflation/images/charts/Oil/Gasoline_inflation_chart.htm
    Now as it happens I agree that we’ve probably hit peak oil, but (strange to say) this *does not* necessarily mean that gasoline prices are going to keep going up. If we begin switching substantial portions of the US motor vehicle pool over to natural gas while continuing to increase US oil production, gas prices may yet fall again.

    As for demand being ‘ahead of’ production, that is a meaningless statement. We live in a world of scarce resource; demand is always ahead of production. Be more precise.

  7. johngalt says: 7


    Playing the “no I’m not, you are!” game, are we? A little history for you; When Stalin was talking about “useful idiots”, he wasn’t talking about those who opposed him. No, instead he was talking about the rubes in the masses who ate up his words and essentially marched themselves into slavery to the state. Exactly as you do with everything Obama says.

  8. Rob in Katy says: 8

    I work for a Drilling Company, we had close to 40 rigs working in the gulf before Barry, we now have 3 which are not drilling but in support of production rigs. Where are they all now, most are in Brazil as are the jobs that support them. If production is up, it is from advances in getting the existing wells working better, not from new drilling or exploration. But, if production is up then why are prices up, in the past with higher production we have had lower prices…. oh, it is because Barry is so busy devaluing our “Dollar!”

  9. Nan G says: 9

    Good information, Vince.

    I wonder what, if anything, Obama can do to look good before the 2012 election.
    Will he open the Strategic Oil Reserves for such a crass reason as simply gaining polling points?
    In June 2011 Obama opened the SOR to lower gas prices.
    Remember we had to pay top dollar to OPEC refill those reserves…..if we even did refill them.
    Will he engineer or define something as a catastrophe to justify setting prices or rationing?

    One of the things often overlooked in how higher gasoline prices affect us is product changes.
    The ”new” Ivory dishwashing soap (for example) is now 24 fl. oz when the old one was 30 fl. oz.
    Lots of products look the same but weigh less, from cereals to packaged salads.
    Many detergents have become ”concentrated” so as to save transportation costs of water in them.
    Even the packaging itself is flimsier.
    The prices may be the same (or even higher) but you get less.

    Higher energy costs impact us in all aspects of our lives.

  10. A.Men says: 11

    ABO 2012 ( Anybody But Obama)

    I don’t think there are enough stupid Americans to re-elect Odummer !

  11. Bob57 says: 12

    High gasoline prices are Obama’s magic bullet for re-election. Why? Because this is the hand-out election. Student loan forgiveness, mortgage debt amelioration, increased food stamps, stimulus plans, make-work jobs of all kinds, “green” energy subsidies, are all part of a nearly endless list. As long as the government keeps redefining inflation away, then Obama’s ability to spend on hand-outs is limitless. Skyrocketing fuel prices gives Obama the ultimate election trump card – the promise of gasoline welfare. The electorate will run to vote for Obama like lemmings to the cliff.

  12. Nan G says: 13

    One thing Obama is not counting on, however, Bob57.
    Many of those who have been forced by circumstance to take assistance hate Obama for manufacturing these situations that made them suffer.
    There are many who cannot wait to get off the dole.
    They will NOT be voting for the person or party that even thinks the dole is a great thing for our economy.
    Obama wrongly assumed that bad circumstances would neuter men and women into dependant-child-like beings.
    He was wrong.

  13. Liberal1 (objectivity) says: 14

    I oil companies were nationalized, then they’d be capable of responding to the needs of this country better—instead of exporting all the best gasoline and importing cheap gas for domestic consumption.

  14. MataHarley says: 15

    libzero: I oil companies were nationalized, then they’d be capable of responding to the needs of this country better—instead of exporting all the best gasoline and importing cheap gas for domestic consumption.

    Wow… not a surprise, mind you. But every time I see examples of those the Dems believe are too stupid to make wise decisions for themselves, I am floored. What’s even sadder is when you actually provide the education basics, their resistance to learn is far stronger than their ability to absorb knowledge.

    So libzero, reality does so interfere with your talking points:

    1: “Nationalizing” the American oil companies, which is absurd in itself since they are international in their business, would not affect the price of the barrel on the global market. Nor would it do much good when your POTUS and party doesn’t want the American oil companies to tap US resources. BTW, just how many “American” companies do you think there are? And how large and influential are they compared to the competition?

    I might also add that the few American oil companies lose money on that part of their business which supplies refined gas to stations. They make their profits on E&P endeavors to make up for that loss. And, of course, most of the E&P is done outside the US (see above about POTUS and party resistance…). Therefore the evil oil types don’t need to pay the greater amount of the taxes on profits earned for off shore and foreign contracts.

    2: The US refineries are among the most efficient and modern in the world. Thus the reason that foreign countries like to buy our diesel fuel. However 90% of all domestic gasoline is produced by US refineries, and purchased by American consumers at the pump – leaving only 10% approx imported.

    And why do you think that 10% is superior quality, libdud? Or is this just more of your off hand, undocumented cyber lip flap?

  15. Oil guy from Alberta says: 16

    @Liberal1 (objectivity): Mr. Liberal- you have got to be a plant. Yes, the I Q of a vegetable. If you would read some history, you will find dozens of examples of nationalized failures. I’ll give you 2 from Canada. The Federalis had a plant near Fort McMurray. Yes, its the same oil sands area of today. The end result was that the plant burnt down and the Canadian taxpayer lost millions of dollars. In 1980, Pierre Trudeau brought in the National Energy Program. The end result was that over 100k Albertans lost their jobs and Canada was hurting economically for a decade. Trudeau could give a damn because it was W. Canada.

    Mr. Libzero, you make as much sense as Maxine Waters(iDiot- Commiefornia).

  16. FAITH7 says: 17

    Nan@13 / Mata@15 – You two have such a great way of putting things into perspective!!

    Obama wrongly assumed that bad circumstances would neuter men and women into dependant-child-like beings.
    He was wrong.”

    “Wow… not a surprise, mind you. But every time I see examples of those the Dems believe are too stupid to make wise decisions for themselves, I am floored. What’s even sadder is when you actually provide the education basics, their resistance to learn is far stronger than their ability to absorb knowledge. …. ”

    What a hoot!

  17. Pingback: Gas Price Check - Page 267

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