Obama wants $8 a gallon gasoline

[ViperOverLord]

Obama's secretary of energy, Mr. Chu (who was unapologetic about Solyndra), stated that he wants gas prices to be as high as Europe ($8 a gallon). He has also stated that it is not his goal to lower gas prices.

Candidate Obama said this:

Obama: I think that we have been slow to move in a better direction when it comes to energy usage, and the president frankly hasn’t had an energy policy. As a consequence, we’ve been consuming energy as if it’s infinite. We now know that our demand is badly outstripping supply with China and India growing as rapidly as they are.

Harwood: So, could these high prices help us?

Obama: I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps to help people make the adjustment, first of all by putting more money into their pockets, but also by encouraging the market to adapt to these new circumstances more quickly, particularly U.S. automakers, then I think, ultimately, we can come out of this stronger and have a more efficient energy policy than we do right now.

Source

Obama wants us to believe that prices cannot go down even as oil companies rack up record profits (Someone's been bought and paid for).

[Neoteny]

So... is this thread legit or satire of satire?

I can't tell anymore.

[Timminz]

He has also stated that it is not his goal to lower gas prices.

As a supporter of free-market solutions, I agree. In general, it should not be the government's job to affect the price of goods.



I wonder how much gas prices would rise, and what other effect(s) would arise (specifically economically), if all subsidies to oil and gas companies were ended.

[ViperOverLord]

He has also stated that it is not his goal to lower gas prices.

As a supporter of free-market solutions, I agree. In general, it should not be the government's job to affect the price of goods.

I wonder how much gas prices would rise, and what other effect(s) would arise (specifically economically), if all subsidies to oil and gas companies were ended.

Gas isn't a free market matter. Government heavily taxes it, prevents drilling, blocks the Keystone Pipeline. And on top of that, special interests have allowed for gas prices to be based on speculation instead of supply and demand. But even regarding supply and demand, govt and oil companies have walked lock step to block refinery capacity.

[AndyDufresne]

My gasoline drinking addiction is going to suffer then.


--Andy

[ViperOverLord]

My gasoline drinking addiction is going to suffer then.


--Andy

Are you a hybrid? Part man, part car? Or can you change to either? Are you a Transformer?

[GreecePwns]

It shouldn't Obama's goal to lower gasoline prices. It should be Obama's goal to create a free market for energy. Gasoline prices are artificially kept low due to subsidies to oil companies, which make up around 70-80% of the $100 billion of subsidies in the energy sector of the economy. Removing all subsidies to the energy industry (in a gradual fashion, of course) would lead to higher gasoline prices. Yes, even as high as $8 a gallon. But it also will remove the incentive to stay with oil-based energy, which is inherently a less efficient energy source than renewable energy sources. Cutting taxes by that same amount leads to an extra $330 in each American citizen's pocket each year as well. Surely you like these things, VOL?

The next century's world economic power will be the nation which leads the way in the green energy sector and high-speed infrastructure.

[oVo]

Gas isn't a free market matter. Government heavily taxes it, prevents drilling, blocks the Keystone Pipeline. And on top of that, special interests have allowed for gas prices to be based on speculation instead of supply and demand. But even regarding supply and demand, govt and oil companies have walked lock step to block refinery capacity.

+1 and it's been that way for the majority of American citizens' lifetimes.

I find it interesting that the OP has President Obama speaking in the 3rd person.
That's something new.

[AndyDufresne]

My gasoline drinking addiction is going to suffer then.


--Andy

Are you a hybrid? Part man, part car? Or can you change to either? Are you a Transformer?

I've always been part man and part machine since the accident. One of these days I will upgrade.


--Andy

[thegreekdog]

He has also stated that it is not his goal to lower gas prices.

As a supporter of free-market solutions, I agree. In general, it should not be the government's job to affect the price of goods.

I wonder how much gas prices would rise, and what other effect(s) would arise (specifically economically), if all subsidies to oil and gas companies were ended.

Gas isn't a free market matter. Government heavily taxes it, prevents drilling, blocks the Keystone Pipeline. And on top of that, special interests have allowed for gas prices to be based on speculation instead of supply and demand. But even regarding supply and demand, govt and oil companies have walked lock step to block refinery capacity.

I have some additions and a slight modification:

(1) Government heavily taxes gasoline consumption, not production. Those consumption taxes are born by consumers, not by oil companies.
(2) Government provides various tax benefits to oil companies, including, but not limited to depreciation benefits, grants for oil production, credits for oil production, etc. Oil companies have among the lowest effective tax rates in the United States.

I too wonder what would happen if the tax code applied equally to all industries.

[ViperOverLord]

It shouldn't Obama's goal to lower gasoline prices. It should be Obama's goal to create a free market for energy. Gasoline prices are artificially kept low due to subsidies to oil companies, which make up around 70-80% of the $100 billion of subsidies in the energy sector of the economy. Removing all subsidies to the energy industry (in a gradual fashion, of course) would lead to higher gasoline prices. Yes, even as high as $8 a gallon. But it also will remove the incentive to stay with oil-based energy, which is inherently a less efficient energy source than renewable energy sources. Cutting taxes by that same amount leads to an extra $330 in each American citizen's pocket each year as well. Surely you like these things, VOL?

The next century's world economic power will be the nation which leads the way in the green energy sector and high-speed infrastructure.

1. I agree that I just want gasoline prices based on the free market (though if govt. did regulate it, I'd want price ceilings to keep gas prices down. I think that can be done given the fact that gas companies still could make very healthy profits. Current cost/price regulation is not agency based though. It's Congress based).

2. No. I don't believe for one second that gasoline prices are low in America based on subsidies/grants. They're high in Europe b/c of insane tax rates. I'm fine with cutting taxes, subsidies, grants etc and any other artificial barriers and watching gas prices dip like crazy.

3. So-called green energy is not efficient yet. When it becomes efficient, all countries will naturally go in that direction. Currently, it's just smoke and mirrors perpetrated by politicians and special interests.

[Johnny Rockets]

If you make fossil fuel consumption the path of least resistance,( or in this case cost...) then alternative energy sources will never get focused on enough to be developed or perfected rapidly.
The tactic here is to increase the pump price to stimulate development and to perfect alternative energy.
Clinging onto a disappearing resource is destructive as hell socially. Rising food prices = abject poverty = civil unrest. Best to (forcefully if needed) wean the sheeple off the sweet crude tit, if you want your nation to be relevant in the next 20 years.

JRock

[ViperOverLord]

If you make fossil fuel consumption the path of least resistance,( or in this case cost...) then alternative energy sources will never get focused on enough to be developed or perfected rapidly.
The tactic here is to increase the pump price to stimulate development and to perfect alternative energy.
Clinging onto a disappearing resource is destructive as hell socially. Rising food prices = abject poverty = civil unrest. Best to (forcefully if needed) wean the sheeple off the sweet crude tit, if you want your nation to be relevant in the next 20 years.

JRock

That's there logic and it's a gimmick and an excuse to line their pockets and their benefactors pockets. Alternative energy will be more affordable as we create breakthroughs. I don't mind debating the argument for R & D, but I'm not going to pretend that higher fuel costs are a means to that end.

Fossil fuel is not a disappearing resource either. When you die, there will still be plenty of it in the ground. When your great, great, great, great grand children die there will still be plenty of it in the ground.

[MeDeFe]

I too wonder what would happen if the tax code applied equally to all industries.

You might have to get a new job. *rimshot*

[InkL0sed]

If you make fossil fuel consumption the path of least resistance,( or in this case cost...) then alternative energy sources will never get focused on enough to be developed or perfected rapidly.
The tactic here is to increase the pump price to stimulate development and to perfect alternative energy.
Clinging onto a disappearing resource is destructive as hell socially. Rising food prices = abject poverty = civil unrest. Best to (forcefully if needed) wean the sheeple off the sweet crude tit, if you want your nation to be relevant in the next 20 years.

JRock

That's there logic and it's a gimmick and an excuse to line their pockets and their benefactors pockets. Alternative energy will be more affordable as we create breakthroughs. I don't mind debating the argument for R & D, but I'm not going to pretend that higher fuel costs are a means to that end.

Fossil fuel is not a disappearing resource either. When you die, there will still be plenty of it in the ground. When your great, great, great, great grand children die there will still be plenty of it in the ground.

You don't know what gimmick means.

But then again, I'm not sure you know what reality means, either.

[sportsgod24]

The president has nothing to do with oil or gas prices short term. Some of you guys should take a world economy class or something. We are lucky in the US that 1. The world economy is based off the dollar and 2. that we are a net exporter of oil.

Instead of complaining about politicians being the reason for high gas prices, why don't you urge the government to move towards alternative energies faster. If we didn't have motor vehicles and someone invented them today, people would be laughed at for suggesting an internal combustion engine. It's a thing of the past and we need t move forward.

And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

[thegreekdog]

I too wonder what would happen if the tax code applied equally to all industries.

You might have to get a new job. *rimshot*

It's the curse of being both a tax attorney and Libertarian. That being typed, I'm fairly confident that things will not become simpler and will only become more complex.

The president has nothing to do with oil or gas prices short term. Some of you guys should take a world economy class or something. We are lucky in the US that 1. The world economy is based off the dollar and 2. that we are a net exporter of oil.

Instead of complaining about politicians being the reason for high gas prices, why don't you urge the government to move towards alternative energies faster. If we didn't have motor vehicles and someone invented them today, people would be laughed at for suggesting an internal combustion engine. It's a thing of the past and we need t move forward.

And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

I cannot tell you how excited I am to have a bona fide liberal on this site who actually posts party-line stuff like this. I'm really hoping you stay around so we have someone to argue with. And yes, I'm being serious.

[codeblue1018]

I Guess the 50 cents a gallon that the citizens pay in the Middle East would be out of the question?

[Lootifer]

The oil market is so fucked right now that supply and demand has almost nothing to do with observed prices.

(example: The LRMC of oilsands is less than that of the average price for 2011).

Blaming Obama for this is beyond idiotic.

[thegreekdog]

Loot - FYI:

The president has nothing to do with oil or gas prices short term. And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

Just sayin'.

[notyou2]

The oil market is so fucked right now that supply and demand has almost nothing to do with observed prices.

(example: The LRMC of oilsands is less than that of the average price for 2011).

Blaming Obama for this is beyond idiotic.

Then who should the right wing blame? Is there anyone else?

[Lootifer]

Loot - FYI:

The president has nothing to do with oil or gas prices short term. And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

Just sayin'.

Yer, I agree with that kind of. My exception to that is the president kinda does have a lot to do with the oil price. So much interferance from the state, big oil co's and speculators means oil price is a joke - but a joke that defines world economics...

[ViperOverLord]

Loot - FYI:

The president has nothing to do with oil or gas prices short term. And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

Just sayin'.

The president can't snap his fingers and change prices. But he does control many factors and he can ultimately drive down/up the price if he chooses.

[sportsgod24]

I too wonder what would happen if the tax code applied equally to all industries.

You might have to get a new job. *rimshot*

It's the curse of being both a tax attorney and Libertarian. That being typed, I'm fairly confident that things will not become simpler and will only become more complex.

The president has nothing to do with oil or gas prices short term. Some of you guys should take a world economy class or something. We are lucky in the US that 1. The world economy is based off the dollar and 2. that we are a net exporter of oil.

Instead of complaining about politicians being the reason for high gas prices, why don't you urge the government to move towards alternative energies faster. If we didn't have motor vehicles and someone invented them today, people would be laughed at for suggesting an internal combustion engine. It's a thing of the past and we need t move forward.

And if you do want to play the blame game, you have to start at Bush (W) who saw gas prices rise 2.5 times what they were when he came into office.

I cannot tell you how excited I am to have a bona fide liberal on this site who actually posts party-line stuff like this. I'm really hoping you stay around so we have someone to argue with. And yes, I'm being serious.

Haha, that last comment is just a shot at how stupid it is. Obama used that fact to try to get support in 2008 and now all the candidates are saying the same thing about rising gas prices in his term.

To tell you the truth I am an independent, but I believe in civil rights, education, and innovation so I end up voting mostly democratic. If Jon Huntsman somehow would have won the republican nomination, he would be my choice.

[Neoteny]

Huntsman! Whoo!

The most best conservative candidate was one of the first to go.