Friday, August 19, 2005

Why Are Gas Prices So High

As I posted earlier

here the high price of gas is the major reason that President Bush's poll numbers are down. The Dems are trying to make hay per this article:

hay time?

In a letter to the White House, Reid also said the Federal Trade Commission should investigate instances where a state's retail prices rise 20 percent in any given week "to determine if the price of gasoline is being artificially manipulated."

Harry rest-up and come back when your mind is sound and lucent again, and when your intentions are pure and positive................................

I can't blame them, when your party is so far out of the mainstream, you grasp at any mainstream issue that you think might give you some traction, even if its a free market issue. That said it's a looser for them:

Gore Wants To Tap Reserves

In 2000 Gore wanted to not only tap into emergency reserves but create a regional subsidy in the Northeast via the Communist Chinese blue print formula for oil distribution via liberal CNN:

Among the vice president's short-term solutions was his proposal to siphon oil from the strategic reserves..............Gore also called on Congress to create a permanent home heating oil reserve for the Northeast.................The reserve, Bush said, "is an insurance policy meant for sudden disruptions of the oil supply or for war. It should not be used for short-term political gain ...

(kind of a time warp isn't it back to 2000 with another crazy democrat talking about easy and short term fixes instead of doing the things that will really make us less dependent on foreign oil)

Here is what Bush said back in 2000:

Rather, Bush said, plans must be implemented to make the United States less dependent on oil imports. "I would like to aggressively explore our own continent for oil and natural gas."

(sounds like the energy plan that Bush got passed this month after four years of Gore & Harry Reid like obstruction)

Here is what Kerry said last year on how he would solve the gas price crisis:

Kerry's Wants To Tap Reserves

Kerry outlined several steps that he said would help hold down gasoline prices, including diverting oil going into the Strategic Petroleum Reserve.........

So do you see the theme, no solutions from the Democrats to address tough supply and demand fundamental laws, instead their solution is to siphon oil from the strategic reserve.......then what? Well nothing but, no way to new safe drilling in Alaska, no way to more refineries, yes to more nothing but siphoning off the reserve, sort of like their social security plan................

Bush just got his energy plan passed on 8/9/05 and here is what he said it would do:

President Bush signed the first national energy legislation in more than a decade on Monday, hailing the measure as a smart way to make Americans more secure and less dependent on foreign oil.

At a bill-signing ceremony at the Energy Department's Sandia National Laboratories, Bush said the new energy policy will go a long way toward weaning Americans off imported oil by encouraging the domestic production of oil and natural gas and greater use of cleaner-burning, domestic energy sources such as nuclear power, ethanol and liquefied natural gas.

"I'm confident that one day Americans will look back on this bill as a vital step toward a more secure and more prosperous nation that is less dependent on foreign sources of energy," Bush said.

(sounds exactly like what he has been saying for the past four years, difference is that the Republicans have a majority now in the Congress and were able to get this done - and our gas issues will be better sereved now because of it)

So the President passes laws that even WaPo has to admit are a long term fix, but what the Dems have for us is more siponing or sucking off the reserves intended for a disaster. Nice non-plan guys & gals..............................

For those Art majors that never took a business class here is a little crash course on Supply & Demand related to OIL:

Supply & Demand Oil

Oil is only half the equation, you can not pour oil in your car it has to be made into gas.

Oil to Gas

South East gas can not be sold in the Mid-West, just as Mid-West gas can not be sold in the North East, and North East grad gas can not be sold in the West. The Enviro-Terrorists require this restriction via the DNC. Don't like it then tell the DNC......................

Bad Mix Rew

High Demand means the price will also go up and the higher the demand the higher the price. It's pretty simply, like me trying to find extra tickets to the NCAA Finals here in STL last year. We had Illinois, Michigan State, Louisville, and NC in the tournament (all but NC close and Illinois real close). Illinois drove the demand up huge for tickets and the price rose equally to the demand. It did not come down even up to game time, because the demand was so high. Why was demand so high? Illinois fans were outside the Dome up until the tip off looking to buy tickets so the demand was high and stayed high.

Oil export countries are like NCAA ticket holders in my prior comment, they are the ones making money on this deal. Here are the top export countries in terms of oil:

Juicing You

1) Saudi Arabia 2) Russia 3) Norway 4) Iran (yes Iran) 5) Venezuela (yes that socialist South American country) 6) UAE 7) Kuwait 8) Nigeria (got some yellow cake?) 9) Mexico ( oil for immigrants?) 10) Algeria ( yes the country that is currently conducting genocide)

If your pissed these are the guys to be pissed at. They hold the tickets and are making money on their resources that they sell on the free market. I'm not pissed, I say supply and demand are a good thing. The model has severed us better than any other model since the cave men started trading so we know its a solid model. America is the second producer but turns the product back and is to its citizens and does not sell it to other countries, which keeps prices way down. If there was an American oil conspiracy the US would be in the top 10 exporters. That's not the case, America does right by their citizens and provides cheap oil for us.

The Democrats want to suck from the strategic reserves to solve the oil issue, over and over and over again. Nothing else they have offered for years and here they come again. You saw above four years of that being the case, no answers and obstruction in most cases are the Republicans moved to a solution. Sucking from the reserve does nothing to solve the problem, which come to think about it is what most democratic solutions end up fanning out.....................................