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I am very disappointed in Obama's comments: Make your voices heard!
Well, Obama has finally done it: he is beginning to pander on the issues of gasoline prices. Here are some quotes (from AP News story):
Barack Obama
on Friday blamed high gasoline prices on Washington and a political
establishment that he says hasn't stood up to oil companies, his two
rivals for the presidency included."The candidates with the Washington experience — my opponents — are
good people. They mean well, but they've been in Washington for a long
time and even with all that experience they talk about, nothing has
happened," Obama said in remarks prepared for delivery later in the
day. "This country didn't raise fuel efficiency standards for over 30 years."The result, the Illinois senator said, is that consumers are suffering.
"So what have we got to show for all that experience?" Obama asked. "Gas that's approaching $4 a gallon."
Let's be honest: the problem was not Washington, it was us.
There was a drop in energy usage in this country until the production of oil in Alaska and the North Sea artificially gave us the temporary drop in prices in the late 80's and 90's. And what did the US population do? Everyone bought SUVs.
Is the US population really like a group of children that won't do something responsible unless they feel like they are being watched by their parents (the Fed)?
Where was our responsibility? And now Obama seeks to exploit our "Who, us?" attitude by absolving our past behavior and blaming it on someone else.
Chillingly, another energy article came out today. It, too, has some interesting quotations.
The
price of oil is likely to hit 150 dollars (Canadian, US) a barrel by
2010 and soar to 225 dollars a barrel by 2012 as supply becomes
increasingly tight, a Canadian bank said Thursday.The CIBC report
says the International Energy Agency's current oil production estimates
overstate supply by about nine percent, since it wrongly counts natural
gas liquids -- which are not viable for transportation fuel -- in its numbers.
Analyst Jeff Rubin in his report noted accelerating depletion rates in
many of the world's largest and most mature oil fields. He estimates
oil production will hardly grow at all, with average daily production
between now and 2012 rising by barely a million barrels per day.
and
We shouldn't expect other countries to act any differently than us. And here's another thing: countries like Russia who export oil, will export the stuff after they have satisfied their own country's needs. Therefore, in addition to being in post-peak oil production, expect a more significant drop in post-peak oil availability to the US.Rubin cites, for example, the recent
launch of Tata's 2,500-dollar car that will allow millions of
households in India to soon own automobiles.He also notes
that car sales last year were up 60 percent in Russia, up 30 percent in
Brazil and up 20 percent in China.Transport fuel now accounts for half of the world's oil usage.
Although US oil consumption is likely to fall by over two million
barrels a day over the next five years as pump prices rise, he says,
more drivers on the road in Russia, China and India will surely pick up
the slack in demand.
Translation: even higher prices faster.
Remember that US Oil Companies only control about 5% of the world's oil supply. No matter what they charge, gas prices are going up, ladies and gentlemen.
I urge all Obama supporters to write him and let him know he shouldn't get people all twisted on this issue. Should he become POTUS, the issue will come around and bit him, especially for giving the US false expectations.


Comments (109)
Yes, we are a big part of the problem. But, just as you can't expect other countries to act differently you can't expect consumers to change without consequence. Yes, as a whole we are like children. That being said, you are right to say we should contact Obama and ask him to speak to us like adults as he has on other issues. It should be clear that we will experience a lot more pain at the pump and there is no magic pill to make it go away. But, 30 years without raising fuel efficiency standards is a failure of our government and auto makers.
April 25, 2008 2:10 PM | Reply | Permalink
Small cars are by definition more fuel efficient. But people bought the big gas-guzzlers anyway. The bottom line is unless you outlaw trucks and SUVs for the typical suburban consumer, raising fuel efficiencies hides the problem.
I think $6/gal gas (it's coming) will automatically raise fuel efficiencies. I will not feel sorry for *anyone* who bought a car with less than 20 mpg efficiency since there are so many options out there with better efficiencies.
By the way, there are tricks to get around fuel efficiency numbers -- these are occasionally reported and the reason why your gas mileage is never good as the sticker on your car. So "raising efficiency" is not an efficient way of dealing with the issue anyway.
At this point, I want the markets to decide because the people are too gluttonous to control themselves. But it's sad it had to come to that.
April 25, 2008 2:18 PM | Reply | Permalink
Is it really too much to ask for the Back to the Future car that runs on banana peels and garbage? That just would be so damn cool.
But seriously, trucks and SUVs would never be outlawed. And yeah, too many people buy Hummers cause they think they're cool. But some people actually do need trucks and the like for work purposes.
April 25, 2008 7:01 PM | Reply | Permalink
Hey Mensa, when gas hits $6 a gallon, getting to soccer practice inexpensively is going to be the least of your worries.
A much bigger concern will be how fast you can reload and cap your neighbors as they try to steal the water you've collected from the rain gutters.
April 25, 2008 11:23 PM | Reply | Permalink
Yes, the government didnt invest in alternative technologies, they allowed big oil to block electric cars, they invested in obfus. My investment fund dinner date just said the Iraq war. We do choose the wrong environmental choice, we should own that, but the government, and out ability to change that, has let us down and handcuffed . The only letter I will write is to Kool Aid, noting the umbrage you take in the name of partisan politics, and the lack of blogging you HAVENT done on this issue when it wasn't advantageous for Hillary to try the manufacture an issue out of thin air.
Lets see, no posts on environment or personable accountability before the primaries; now during a life and death struggle for one candidate this issue is now decriable (meanwhile, fighting two wars and starting another don't make the blog priority tonite. Obama bad wite letter, yes, thats the ticket.
April 26, 2008 12:23 AM | Reply | Permalink
Too mush wine at dinner. Too clarify the uncompleted, above:
- obfuscate global warning realities
- Iraq War is almost entirely responsible for the increase in oil prices. 300% in 8 years guys, its not just supply and demand, its managed (OPEC) supply and unmanaged demand.
Anyone heard about Brazil's discovery?
April 26, 2008 12:26 AM | Reply | Permalink
If it wasn't so true, I'd be rolling on the floor laughing. But I guess I really ought to cry.
April 26, 2008 11:38 AM | Reply | Permalink
IMAGINE THIS
Obama in a Prius. There goes the "Pimp My Ride" vote. For a guy who can't bowl his IQ this would complete the picture. Please God nominate this whimp.
Anxious in Texas
K. Rove
VOTE YOUR CONSCIENCE
NOT YOUR GUILTY CONSCIENCE
April 26, 2008 1:02 PM | Reply | Permalink
HEY KOOLAID!
April 25, 2008 2:11 PM | Reply | Permalink
I see your point, CT, and I chalk it up to oversimplification on the campaign trail. It's true he's conflating fuel standards with world oil supply, but I'm hopeful that his previous statements about planning to direct $150b at an Apollo- or Manhattan-style Project toward commercializing alternative energies will be taken up and forcefully advocated when he's president.
April 25, 2008 2:19 PM | Reply | Permalink
I'm no economist but, the rapid increase in gas price doesn't appear to be driven by the normal supply and demand curves. For the moment, the problem is being driven by the rapid devaluation of the U.S. Dollar, which makes any import good, such as crude oil, more expensive. The root of the problem is that our Gov't is carrying too much debt. One more crisis in the making, thanks yet again to the Republican congress and Bush.
April 25, 2008 2:20 PM | Reply | Permalink
The dollar's value plays some role, but there's no question that global oil supply is decreasing (because we've crossed the peak production threshold), production costs are rising, and demand in Asia has increased enormously and shows no sign of reversing. It's an ugly picture, all told, and like CT has said before, the vast majority of Americans are not clued into just how bad the situation has gotten and is going to get. Even if the dollar recovers against the Euro, for example, you will not see gas prices return to where they were in 2005.
April 25, 2008 2:30 PM | Reply | Permalink
Also, this is very complicated if you consider the term "petro-dollar." In a sense, all of the oil is simply Uncle Sam's, because oil is marked in dollars. This isn't simply because the dollar is a sort of lingua franca-- it has much more to do with nuclear submarines et. al parked outside the Persian Gulf.
April 25, 2008 2:50 PM | Reply | Permalink
While it is true that oil and gold have tracked remarkably well -- and shown that some of the price is because of the dollar -- LBP has the real point here: all oil is traded in dollars (petrodollars).
In a sense, while we used to peg our currency on gold, we now peg our currency on oil. That has, in part, *stabilized* our dollar because it ensures a demand for it.
However, the dollar's weakness means that we may not have petrodollars much longer. (One of the things that Saddam did that we didn't like was there were lots of rumors of his dealing oil to the Russians with Euros, etc.)
The Saudis have pledged to keep us in petrodollars -- as long as they have no reason to break that agreement.
Should we go off of petrodollars, you will see a much more rapidly declining value of the dollar.
However, even in the case you argue, the way to deal with $4 /gal gas is provide a sound economy, not go after the oil companies. Which again, shows that Obama is playing to an emotional issue dishonestly.
I suggest everyone enjoy $4/gal gas while you can. These will be the good old days very soon. We are running out of oil, and more rapidly each year.
April 25, 2008 4:59 PM | Reply | Permalink
Maybe I'm missing something fundamental (econ was never my strong suit), but isn't the relative cost of oil to the U.S. market getting more expensive because of the decline of the dollar? To be simplistic, the Germans get a $1.60 worth of oil when they trade in a euro for dollars and send those dollars to an OPEC provider. Next week they might get $1.70 in oil, while we still get however much we've agreed to get for a dollar.
And what is the impact of discontinuing pertro-dollars? Not sure I understand why, if oil were sold in Euros instead, we would get any less for our dollar (except for the tiny marginal difference in transaction fees for us to acquire Euros). Wouldn't 1.00 Euro get us $1.60 worth of oil? Is it the cumulative effect of having many fewer dollars reinvested in the US financial industry because OPEC would no longer take in dOllars?
April 25, 2008 5:14 PM | Reply | Permalink
You're not required to pay in dollars, but the price is dollar-denominated, meaning that is must adjust to the value of the dollar, which makes volatility in the value of the dollar problematic, especially if you want predictable returns on trading oil. This creates an incentive in currency markets to prevent large fluctuations in the value of the dollar. Without that impetus, the dollar is just another currency, with far fewer parties invested in its welfare.
And to clearthinker, I think Obama is right to criticize energy companies for funding research questioning the validity of climate change, for actively manipulating markets to create artificial aberrations in supply / demand curves and for overstating estimates of recoverable reserves. That doesn't lend itself to good speeches, so Obama goes instead with the bottom-line figures (how much gas costs and how much Exxon-Mobil clears in a year). It's not disingenuous, from my perspective, although it does simplify the issue to a form that's more amenable for political persuasion. That's the difference between Obama and Ross Perot -- Perot thought he was the chair of the world's largest board meeting, where people get paid to hear all about the boring little details of how economics actually works. If Obama wants to convince you you're getting screwed by fossil fuels, he needs you to get the message before the next story on Hannah Montana or a suspicious package cycles in.
April 26, 2008 10:26 AM | Reply | Permalink
I've always said that people who drive SUV's that guzzle gas should pay an extra gas tax. Our own use and abuse of natural resources is why we are in the position we are.
Accept responsibility!
April 25, 2008 2:40 PM | Reply | Permalink
Clearthinker, as you might have seen in some of my comments, I've been reading more on peak oil since your last article on it.
I'm beginning to approach it as a separate issue, and this is giving me some clarity on it. Let me be specific: before, my view of peak oil was to lump it in with a coming environmental catastrophe, famine, genocide, and fascist police state, etc. Now I'm beginning to look at it in less apocalyptic/conspiracy-theorist terms, and more as a giant, but manageable, problem, though still one of great moral consequence.
I'd like to get your opinion on Permaculture. For some time now I've thought of Permaculture as a legitimate way out, at least from a survivalist perspective. But leaving the survivalism aside, on your scale of alternatives, where does permaculture rank? My sense is it is something that has a very high practical ranking, but would rank lower when thinking about feasability-- meaning political and social acceptance of a very different way of life.
I guess as a follow up question- do you believe there is a moral imperative to fire the grid at all costs, in order to prevent massive starvation and death? Or do you believe that 6+ billion people is an unmanageable situation to begin with, and we simply must come down from there. Right now my feeling is: we have got to fire that grid. Though it is due to our own greed and gluttony, billions do not deserve to die because of it. And even if they do deserve it, there seems to be a strong moral imperative to stop this death at all costs.
April 25, 2008 2:44 PM | Reply | Permalink
Permaculture? Fire the grid?
Let's not speak in terms the masses will only find confusing. Care to rephrase in more standard terminology?
By the way, the planet holds as many people as technology allows -- there has been this trend throughout humans' existence on the planet. So, if we lose technology, by definition, we are too populated.
I suggest you check out OVERSHOOT by Catton. Written in 1980, it sounds even more modern today. Easily available on Amazon. It is a readable, scholarly work.
April 25, 2008 5:02 PM | Reply | Permalink
Eh? Doesn't that presuppose that technology has a finite limit in its ability to sustain or enhance human habitation? What happened to the idea of getting more bang for the buck? Less overall technology, but more efficient technology = losing technology but sustaining more life.
April 25, 2008 5:17 PM | Reply | Permalink
Semantic issue: "losing" less efficient technology for more efficient isn't what I consider "losing" technology. That's what I call upgrading.
Losing technology means things you used to be able to do with technology, you can no longer do.
I think we agree once we iron out that language issue.
April 25, 2008 6:16 PM | Reply | Permalink
speaking of semantic, we still want to know what the hell 'permaculture' and 'fire the grid' mean, although clearthinker expressed this inquisitive sentiment much more eloquently in an earlier comment.
April 25, 2008 8:45 PM | Reply | Permalink
There are definitely finite limits. There are but four sources of energy in the end:
1. Gravity (dams and tide)
2. Geothermal
3. Nuclear
4. Solar (including wind, biomass, photovoltaics, etc.)
Fossil fuels are just a bank account that contains the investments of previous solar input and they will be depleted before my young children depart this earth, at the rate we're going. Long before that, they will be so scarce and prohibitively expensive that only governments (or government-affiliated industry) will use them.
Solar is exhaustible in that only so much light passes by our spot in the solar system every minute and the means we employ to capture it are crude, inefficient and expensive.
The supply of fissile material that is recoverable here on earth is likewise limited.
I'm not at all certain how exploitable geothermal power is outside the areas of easy access where it is already employed.
We may run out of arable land or clean water supplies before we exceed the earth's energy carrying capacity, but that doesn't mean there isn't one. Increased efficiency only buys you so much against a finite resource. Our rent is currently more than we make each month, and we've been living on the trust fund for a century and a half now.
April 26, 2008 10:47 AM | Reply | Permalink
I like parts of your fourfold categorical breakdown of energy types, but I would refine it as follows:
1. Gravity (tides, dams..) - perfect. elegant.
2. Geothermal - this should just be "Thermal." The earth isn't the only source of heat we might use. Temperature differences of as small as 10 degrees can now be harnessed to produce an electric current. There's an almost infinite ubiquity of waste heat that we're simply not using, and heat is bloody energy. Whether it comes from the earth or from a chemical reaction, heat is energy.
3. Nuclear - while fissile materials are indeed limited, you forgot fusion, which seems eternally out of reach, but materials suitable for fusion will not "run out" any time soon.
4. Solar - fine the way it is.
I'd add 5th and 6th categories:
5. chemical reactions
6. mechanical energy
Neither of which can be harnessed to the degree to which they might make a dent in our problem, but they should be mentioned. I guess the same goes for Thermal, which is why limiting this to Geothermal is reasonable; but since you were so broad with "Gravity" I figured that "Thermal" was more appropriate.
April 26, 2008 8:57 PM | Reply | Permalink
I thought permaculture was essentially the latest version of biointensive farming -- in other words, a more effective, smaller-scale approach to crop raising that doesn't require chemical fertilizer or pesticides. It sounds like you're talking about something else entirely, though....
April 25, 2008 6:25 PM | Reply | Permalink
No, you are just about right on the money. Permaculturists believe their system of farming is a sustainable alternative to the present system. It has a cult following, and has met with success in many different countries; however it has never been tested on a massive scale.
The thing that is exciting about it from the perspective of Peak Oil-- 1) no fertilizers, 2) no shipping. Now I'm going to try to grossly oversimplify the idea in one sentence. The idea is that you grow everything you need on one piece of land-- while there would be a surplus, for a small community the farm would be self-sufficient.
Now, as for "fire the grid." You know, by "the grid" I just mean slang for power, energy, and essentially our society. You often hear of adventurers, hermits, mystics, etc. say that they are going get "off the grid." I've definitely even read this a few times on TPM. Ha!-- but it is probably too late in the day now for this clarification to have any relevance.
April 25, 2008 11:04 PM | Reply | Permalink
Local economies.
Wendel Barry?
April 25, 2008 11:58 PM | Reply | Permalink
Right, but the key difference here would be that... well, let me rephrase this as "permaculturists would argue" that their methods are not ideological, poetic, romantic, religious, etc. Their argument would be that permaculture is superior to monoculture, in that it ultimately supplies higher yields after you factor in the destructive waste of monoculture farming. This would include the energy wasted (i.e. oil), labor wasted, topsoil, environmental destruction, disease (via bio-engineering, pesticides, fertilizers, etc.)
April 26, 2008 12:14 AM | Reply | Permalink
Sounds good to me.
I do try to support local business. Today at the Getty Station (that was .08¢ cheaper than the Citgo on the opposite corner, the station owner was complaining that he was losing money. A bent, humped over 85 year old lady and I wondered aloud who was making money. Maybe the same people getting major subsidies from the taxpayers on top of record profits?
I tend to think so. We're subsidizing the big oil companies so that they'll find new fields, upgrade infrastructure, and build refineries. They haven't done so. Time for a refund.
Pres Bush was in our state today, and this little old lady said, "someone ought to shoot him."
I worry about folks like her.
:(
April 26, 2008 12:29 AM | Reply | Permalink
I also worry: that they might be unarmed.
April 26, 2008 12:34 AM | Reply | Permalink
Senator Obama's point is well taken. While we consume oil, energy policy for this country is most definitely set in Washington. Having two oil men in the White House, and a Republican Party willing to go along for the ride, we've been unable to get a sound energy policy that decreases our dependence on oil - No conservation policies, no (real) CAFE standard increases, huge tax breaks for big oil, no investment in a post-fossil-fuel economy, no vision, nothing.
The lack of vision by this administration is costing all of us (environmentally, economically, socially), just as the costs of rising fuel costs are already impacting the most vulnerable.
It is OUR responsibility to elect an administration with vision, to hold them accountable, and work together to make that vision a reality.
April 25, 2008 2:49 PM | Reply | Permalink
The problem I see with most green energy technologies is that they don't much reduce the demand for gasoline. Most imported oil is used for transportation. Current green technologies primarily address building heating and electricity generation.
Hydrogen fuel cells won't really help either because the most ready source of hydrogen is in hydrocarbons, as in OIL! New thin-film solar technologies show promise, where solar generated electricity could be used to electrolyze water and produce hydrogen, or to charge batteries. Assuming the solar panels become cheap enough for places like China and India where car and truck growth will be greatest.
Meanwhile, looks like greater vehicle fuel efficiency will be needed to bridge us through to these future green technologies.
April 25, 2008 2:51 PM | Reply | Permalink
Fuel cells would help if they were economically viable (obviously, more investment is needed, and we've blogged about this...); fuel cells don't necessarily have to run on hydrogen either. One of my professors from undergraduate is working on building a methanol fuel cell. Don't dismiss fuel cell or battery technology, because humanity has really only scratched the surface.
April 25, 2008 5:19 PM | Reply | Permalink
You know what's got me really excited? Oil and biodiesel from algae.
If we can get this to be viable, it would solve a lot of problems.
Algae isn't food.
Algae can be grown anywhere if you grow it indoors; it can grow in many places that are marginal or useless for agriculture. Scaling this technology up would have little impact on land use.
You can feed it practically anything. All you need is water, CO2 enriched air, and whatever carbon sludge du jour you might have available - crop wastes, sewage effluents, yard wastes, etc.
If it turns out this is viable on a large scale, it would be the beginning of an entire new industry.
April 25, 2008 4:59 PM | Reply | Permalink
There are going to be riots in the streets when the price of algae goes up. LEAVE THE ALGAE ALONE!!! Isn't anything sacred anymore? Once our sewage effluents dry up, we're shit out of luck.
April 25, 2008 6:28 PM | Reply | Permalink
New Plan:
Power our cars with projectile vomit ejected from demonically-possessed teenage girls.
April 25, 2008 6:37 PM | Reply | Permalink
If that script doesn't get picked up by Universal, I'll swear off Sorbitol. But who are we going to get to play the lead?
April 25, 2008 7:29 PM | Reply | Permalink
The girl who's closest to the appropriate age, as well as having the right look? Chelsea Clinton of course.
J/k. It's too bad I specified teenage girls. GHWB got sick in Japan, and GWB choked on a pretzel. Either of them might be better for the part.
April 25, 2008 8:52 PM | Reply | Permalink
Oh, and the exorcist can be played by a SCARY BLACK PREACHER MAN!
April 25, 2008 11:18 PM | Reply | Permalink
WOW! The big fella pandered! So he is human after all.
I'd still take him over the other 2 crooks! McBomb and Clinton have ZERO integrity. I'm not saying Obama has a truckload but he's got more his 2 opponents.
April 25, 2008 5:46 PM | Reply | Permalink
Obama is right. People simply prefer bigger and more wasteful stuff and a truly free-market economy is in theory supposed to make us pay reasonably for these preferences. But in our business-welfare state, the government has pandered to the oil and automobile manufacturing lobby to subsidize oil exploration and keep CAFE standards low, and hidden its destructive actions by keeping the language technical and obtuse.
It'd sure be nice if Americans weren't on average so avaricious and short-sighted, but I blame Washington for making all of us into low-information citizens by keeping all of this secret, or releasing it in language that is nonsense even to most elitists.
Every American should know what a CAFE standard is (and that it's not a $5.00 coffee drink). A good government would ensure they did. That, in my view, is what government is for.
April 25, 2008 5:48 PM | Reply | Permalink
Hey, top 10! And you were worried :)
April 25, 2008 5:57 PM | Reply | Permalink
Touche, my friend!
April 25, 2008 6:13 PM | Reply | Permalink
whose lobbyist wrote this post?
April 25, 2008 6:03 PM | Reply | Permalink
Good question.
April 26, 2008 12:00 AM | Reply | Permalink
Gee, if we had had the "Great National Discussion on Energy Independence" back in Jimmy Carter's administration -- and had actually done something back then about it -- we wouldn't be having the "Great Discussion" today. And McCain and Hillary and Bill have all this experience, all these great plans -- Heck, Bill and Hill had their own eight year to do something and didn't. So what do we have today? $4 a gallon gas.
I'm not sure I follow (or agree with) your disappointment regarding Obama's comments.
Do you drive less? No. Do you carpool or use mass transit? No. Have you bought only the fuel-efficient cars and demanded Detroit build them? No. Spell it S-U-V. Call it big-ass pick-up trucks. Did Bill or Hillary or McCain demand fuel effiency or higher CAFE standards or limited (rationed) energy, or restrict drilling, improve standards, or do anything else to reduce energy dependence? No. We've been talking about "bio-fuels" since I was in college 30 some years ago.
Four bucks a gallon for gas? I say Obama's right (a leadership vacuum) and we asked for it (by not demanding more.) Time for us to get off OUR ASSES require more of the "experienced set" in Washington.
April 25, 2008 6:25 PM | Reply | Permalink
His comment was pandering, and his energy policy with regards to ethanol is troubling. I do like many of his other proposals toward getting cleaner, more renewal energy out there though.
I do, however, think it's unfortunately necessary that we focus on the automakers rather than consumers when it comes to fuel efficiency and oil. Like you say, Americans are like children about this -- and cars are one of our favorite toys. I don't have enough faith in an electorate that voted Bush into office twice to understand a nuanced explanation of the nature of gas prices, or to accept that we need to regulate ourselves ('cause after all, we have tons of oil in that there ANWAR but the freakin' liberals won't let us have it).
It's a mess. Rising oil prices are a blessing in disguise because Americans wouldn't give two craps about the industry otherwise.
April 25, 2008 6:30 PM | Reply | Permalink
Well said. I don't like his ethanol thing either, and I think all the candidates and most in Washington are pandering by plugging ethanol. However, right now it's about as close as we're going to get on an actual discussion of environmental policies. And America has been convinced that ethanol = good.
I've been hoping for $5 gas for many years. High oil prices are the best thing that's happened for air quality in the Salt Lake Valley since the Geneva Steel plant shut down. Light rail is filled to capacity with commuters and they're chomping at the bit to buy tickets to the new commuter rail line up north.
But this stuff is becoming a third rail for American politics. What's a tree hugger to do?
April 25, 2008 9:09 PM | Reply | Permalink
You are wrong.
1. Washington is responsible for the price of gas. They invaded Iraq. It was $20 a barrel before. Now its $120.
2. Secondly, by Washington pandering to Detroit, they've kept very bad fuel efficiency for decades. That uses more fuel. Using more fuel raises prices by increasing demand.
"But, 30 years without raising fuel efficiency standards is a failure of our government and auto makers."
Yep.
April 25, 2008 6:37 PM | Reply | Permalink
Your first point is oversimplification. Iraq is a factor, but by far not the only thing impacting the price of oil.
April 25, 2008 6:41 PM | Reply | Permalink
The exploding numbers of automobiles in China in India, the USA folks who drive gas hogs to impress others, the fact that production peaked in recent years, and commodity market speculators are responsible for the increasing prices.
Get used to it because prices are not going to go down.
April 26, 2008 2:16 AM | Reply | Permalink
Hmm, so how did the price of a barrel of oil go up six-fold in relation to the Iraq misadventure? Iraq may have relatively large reserves still, and it's per annum production is down on average, true... but that doesn't begin to explain the six-fold increase.
It's pathetic that we consumers have been so short-sighted and indifferent that we're only now coming to see just how badly the current administration has managed every single aspect of energy policy over which they had some influence. This point in the curve of oil production and consumption has been coming for a long time. But short-term corporate profits have always been more important than long-term strategizing. Which, sadly, illuminates most of our government policies from the last 7 years.
April 25, 2008 6:49 PM | Reply | Permalink
Wow, interesting topic. I don't think you can have a rational discussion about skyrocketing oil prices without factoring in the arrogance of Bush/Cheney economic and pre-emptive war policies. Every time an oil producing country has made a move away from the dollar to trading for euros, it has spelled trouble.
Saddam Hussein was making an effort to increase oil production which would have driven the price of oil down. Not good news for our friends in Saudi Arabia. But more importantly, the switch in currency would deal a severe blow to the U.S. dollar, which foreign countries including Japan and China have begun slowly phasing away from in favor of a more financially stable portfolio of currencies. Mutual interests between S.A. and the U.S. were served by invading Iraq. And they're still being served by keeping most of the oil in Iraq in the ground as it escalates in value year after year. The current rhetoric about attacking Iran is also of mutual benefit. The U.S. has to honor its promise to protect Saudi Arabia from potential threats like Iran. Iran opened its first oil exchange in February 2008. It also wants to trade oil for euros, not dollars. The administration has been itching to attack Iran for any reason they can think of. That's why Dick Cheney insisted the N.I.E. showing Iran's nuclear ambitions being deserted in 2002. He sat on it for almost a year before it became public, deflating the reason Bush gave for attacking Iran in the first place. Bush continued to try and discredit that report but it was futile. The fact that Iran has been cooperating with the IAEA on all inspections and U.S. raised suspicions. In March 2008, the IAEA found no credible evidence that suggested Iran was hiding or building or planning on weaponizing a nuke. The U.S. continues to raise suspicion which the IAEA continues to question Iran about and it leaves the issue open and unresolved, and sanctions are imposed.
The threat of nukes in Iran isn't working out as Bush and Cheney had hoped. So they've tried a few different things. One was in late January, a potential "gulf of tonkin" like event, in which Iranian speed boats approached a U.S. naval destroyer in the Strait of Hormuz and allegedly threatened to blow up the destroyer. Fortunately, the public was paying attention and questioned the validity of the claim. Long story short, there was no such threat. Interestingly, the administration started talking about how Iran was the real enemy in Iraq.
Follow the logic train and it leads directly into an attack on Iran and another spike in oil prices. And gas prices.
Peak oil, or the end of the era of cheap oil, has certainly exacerbated all this and we're seeing what history will call the resource wars.
Is Obama right about rising gas prices being related to Washington. Absolutely. While it's true that they were bound to rise anyway, had Gore been elected President in 2000, oil would never be at 119 dollars a barrel and our investment in alternative energy sources would have been 500 billion, not a few pennies, and we'd be 8 years ahead of the game. The only problem with our solar and wind technology is that it hasn't been invested in and deployed on the kind of large scale that would make an immense difference. The alternative energy industry would have been and still could be the next bull market in the U.S. if we get off our butts and lead the race to discovery.
April 25, 2008 7:56 PM | Reply | Permalink
Just wondering where we might be with 8 years of Gore fills me with such yearning that I'm literally sick at heart.
April 25, 2008 9:01 PM | Reply | Permalink
Ya mon. He totally deserves the title: Gorical.
I voted for him.
:(
April 26, 2008 12:03 AM | Reply | Permalink
The Iranian "oil bourse"---the reason for the renewed drumbeat about Iran. But, nobody's listening.
April 26, 2008 1:23 AM | Reply | Permalink
Plus, didn't the government encourage the purchase of huge SUV's by giving tax breaks to truck owners? That is a key component to explore before blaming Obama for making misleading comments.
Bush and Cheney being oil freaks, they wanted Americans buying SUVS and large trucks simply because it keeps them in business.
Our oil-government helped create the demand for the SUV. And paid you for purchasing one.
April 25, 2008 10:18 PM | Reply | Permalink
all bull.
where would your argument be without the war in Iraq?
there is no decline or shortage of oil on the market the last 5 years.
yet prices keep going up.
reasons are many ,
the fall of the dollar,but most important, oil must remain at this price level and was brought there to ensure this country can borrow back enough money to pay its bills.
April 25, 2008 11:03 PM | Reply | Permalink
SPQR:
Just saw your posts. Please let me clarify. The problem with fuel-cells is that they all utilize hydrogen, but hydrogen does not exist in nature on this planet. It is always bound to some other element, such as carbon forming hydrocarbons. Methanol, like oil, is a hydrocarbon.
Hydrocarbons can undergo a high-capacity process called 'reforming' where heat (generated by burning guess what?) is used to separate the hydrogen from the carbon. Problem here is that too much energy is consumed in releasing the hydrogen, and the carbon combines with oxygen to form greenhouse gases to boot! Some direct hydrocarbon (methanol) fuel-cell technologies exist but these still produce greenhouse gases as a by-product.
Yes. Almost all of the hydrogen on this planet is bound in water. Electrolysis is a highly energy inefficient means of obtaining that hydrogen. The reason solar cells are desirable for this purpose (along with wind, etc.) is that they are green technologies which all use the sun (even the wind is sun powered). The last thing we would want is to burn coal to produce the electricity for electrolyzing water, for example.
April 26, 2008 12:02 AM | Reply | Permalink
Thanks, see below.
April 26, 2008 9:23 PM | Reply | Permalink
Thanks for the response.
Clearly my comments were misinterpreted by both you and CT. :) By "Ready" I was playing semantic games, and making reference to the ubiquity of water, and the scarcity of real hydrocarbons. (See the definition of 'hydrocarbon' below.)
You don't need to teach me any basic chemistry, I know it already, thanks. :-)
April 26, 2008 9:47 PM | Reply | Permalink
Technically, hydrocarbons are composed of ONLY carbon and hydrogen. Methanol has one oxygen atom in it. If you allow methanol to be a hydrocarbon, you have to let in sugars and fats and all sorts of other gobbledygook.
April 26, 2008 9:26 PM | Reply | Permalink
"Is the US population really like a group of children that won't do something responsible unless they feel like they are being watched by their parents (the Fed)?"
Look, the "Fed" is us. And yes there are lots of folks in the USA that need us to tell them that they can't drive a gas hog SUV or compensator pickup just so they can think they are impressing their friends and neighbors. The dumb asses that do so drive the price of fuel up for all of us.
We can wait for $5.00 per gallon gas to drive the dumb asses from their gas needless hogs, or we can slap some sense into them by imposing CAFE standards which the sluts in the USA Congress have been unwilling to do, for fear of losing their automotive and oil industry johns.
Yes, there are lots of folks who will bankrupt themselves, through promiscuous credit card debt and home equity loans so they can buy gas hogs they really can't afford, not to mention the boat, personal water craft, snowmobiles, and etc.
Let's face it, about half the population of the USA are dumb asses. It's the same half that continues to believe that Iraq and al Queda were in league, because Cheney tells them so, and that Iraq was involved in the 9-11 attacks.
So yes, there are folks who need the rest of us to tell them they must behave in socially and economically responsible ways, as there behavior costs us economically and environmentally.
April 26, 2008 2:09 AM | Reply | Permalink
Okay, how many of you anti-car, ban trucks and SUVs even have driver's licenses?! Some of your knee-jerk reactions and extremist views are self-defeating in having a substantive discussion as you completely turn off most of the American public.
Banning vehicles, raising taxes, and so forth are DOA. Let's work on serious alternative energy not on trying to punish everyone to fit your worldview.
Matthew
http://www.TheIndependentView.com
April 26, 2008 2:12 AM | Reply | Permalink
Licensed and registered -- but also someone who thinks taxes have their place in society, and who knows that we'll never get an alternative fuel source until it's cheaper than dirty energy.
April 26, 2008 3:42 AM | Reply | Permalink
"your worlview"
So in your opinion, the current energy situation, including its environmental effects and its effects on prices consumers pay at the pump is just fine and dandy?
Man, is there anything you don't like to be contrary about?
April 26, 2008 9:48 AM | Reply | Permalink
And yep, I am a licensed driver and own a car that gets between 25-30 mpg.
April 26, 2008 9:52 AM | Reply | Permalink
We'd be looking at Democratic nominee Joe Lieberman, for one thing. So it wouldn't all be good.
April 26, 2008 2:34 AM | Reply | Permalink
Whoa-- what a point! That was a sleeper... where has that point been!?! That gets point of the day.
April 26, 2008 2:51 AM | Reply | Permalink
LOL. yeah. Do you think he'd've picked Joe Lieberman to be his VP again in a 2nd term? Can we even say whether Gore would've won a 2nd term? I guess we'll never know
April 26, 2008 10:45 PM | Reply | Permalink
http://upload.wikimedia.org/wikipedia/commons/9/9f/Chart-of-Oil-Trading-Nation.gif
Yeah, it's Wikipedia, but I found this .gif germane to the subject. I also found it sad and chilling, but there you go.
April 26, 2008 3:39 AM | Reply | Permalink
The oil companies have not built a new refinery is over 30 years - even though demand has increased (tripled). This is one of the primary reasons for the increase in gas prices (supply & demand). I have proposed to the Obama campaign that when Obama becomes President that the Gov't built at least 5 new refinery's to produce fuel for Federal Gov't vehicles, the Military and if there is excess it goes to State Gov't's. This will reduce the demand on the existing refinery's and will result in lower gas prices until other long term solutions can be implemented such as increasing fuel standards of new vehicles.
Chazzg
April 26, 2008 4:06 AM | Reply | Permalink
I think the point is pretty clear. The United States hasn't had an energy policy that prepared us for the what is the obvious natural outcome that we have now.
Supply and demand - simple. It was entirely predictable that oil consumption would continue to go up, not only here in the U.S., but globally. It was entirely predictable that at some point a conflict in the middle east would disrupt oil supplies. The policy we've had is to do nothing except try and maintain the status quo. For example, no increase in fuel efficiency standards for 30 YEARS!!! We're behind China - my God, CHINA!!! - in fuel efficiency standards.
And it isn't even just the price of gas at the pump - we spend BILLIONS and BILLIONS (I'm channelling Carl Sagen) of dollars to subsidize oil, go to war to defend our "national interests" (oil), have bases in the middle east and numerous other resources dedicated solely to oil. My goodness, if we just spent one tenth of that money over the last 15 years developing alternative fuel technologies and putting an infrastructure in place to support it, we'd be exporting our new technologies to the world and sitting pretty by now.
Why isn't that happening? That's a key question. Who's blocking it? You figure out which entities like things just the way they are, and you have your answer. Hint, they have a lot of money, and they give it to politicians who then support whatever policies they want... like tax breaks for 'alternative energy research'. Yeah, right. And, let's set a 'goal' to reduce our consumption of petroleum - by 2025. Boy howdy, that's fast!
Gimme a break. Obama is calling it like it is. You can't expect millions of individuals, many of which have no idea about economics or geopolitical politics, to sit back and think "gee, maybe sometime in the next 5-10 years, China's economy may boom so much that with their huge population that it could actually drive up the cost of oil around the world. Do you really think the average Jane or Joe is reading the CIBC report? Of course not. It is the job of elected officials to represent us in managing our communities and nation successfully. When they don't, they should be replaced by someone who will. The Clinton's and McCain's in our government have been around long enough to do something, and they haven't. Next up, Obama.
April 26, 2008 4:11 AM | Reply | Permalink
Hear, hear. Alternative energy is waiting, to be sure - but it won't be unveiled until the last profitable drop of oil is pumped, refined and sold - and even then Shell and Exxon Mobil will be the ones providing it.
April 26, 2008 10:07 AM | Reply | Permalink
Clearthinker: I am a greenie who has been rooting for $6 gas for years. Perhaps it is because I work from home and it doesn't pain me very much. But it is mostly because of my total resentment of SUV drivers (including some in my immediate family). I have an in-law who cries poverty and claimed she didn't have enough money to send her daughter to pre-school (and thus sent her to kindergarten totally unprepared) who nevertheless drives an SUV she can't afford, much less the gas to fill it. My point? People are too flippin' greedy and stupid to give up their status cars; and hatred of SUV drivers is not enough. We also have to have the political courage to raise CAFE standards (sans loopholes) and to tackle the pollution crisis (it's not "global warming" or "climate change," it's pollution!! We need to stop using right wing terminology). The marketplace is not a reliable method for stopping the environmental crisis facing this planet. People won't stop allowing their purchases to be placed in plastic bags until we force them by governmental fiat. That is simple fact. They will continue to be lazy/selfish and not carry their own re-usable bag. If we had a $2 tax per plastic bag, or banned them outright, we would only then see them turn to re-usable bags (which are infinitely better, stronger, and hold twice as much merchandise). Similarly, we have to be innovative in our solar thinking. There are communities in California in which you can "lease" solar panels in 25 year contracts, and you get a fixed power rate in exchange. This by and large fixes the "upfront cost" issue with solar panels. I don't think Obama was suggesting SUV drivers have clean hands. I think he was merely stating what any environmentalist would agree with, which is that we have to change the CAFE standards. And his point about $4 gas is well taken: Try being a single parent working in the service industry (a job that cannot be telecommuted) and surviving in this economy. Even a Corolla driver would struggle under these prices. What these gas prices, which were artificially low for way too long, demonstrate is that we need to invest, massively, in public transportation.
April 26, 2008 4:30 AM | Reply | Permalink
libgirl:
It scares me that without pre-school, you enter kindergarten "totally unprepared". Are you living in a really nice neighborhood?
CO2 gas is not pollution. It's not an unnatural toxin to the environment (say like cadmium which is refined and then left out in an unnatural state).
In fact, if you were plant, it would be awesome to have more CO2. As George Carlin said: the planet is fine, it's the people that are fucked!
In fact, most of our O2 atmosphere was generated by the explosion of algae growth a long time ago -- so they "polluted" the environment allowing for the development of the animal kingdom!
I agree about $6 gas and mass transit. However, both of these points need to be stated in the proper framework:
This is what Obama should be saying.
April 26, 2008 5:03 AM | Reply | Permalink
If he really, really doesn't want to win.
Sadly.
April 26, 2008 7:01 AM | Reply | Permalink
This is true. But then, it does bring about the notion that the problem is *us* -- the general electorate who won't take responsibility for our own civilization.
April 26, 2008 1:05 PM | Reply | Permalink