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Pain in the Gas, Pt. 2
Author: BobR    Date: 03/02/2012 13:35:12

On Wednesday, I wrote a blog about why gas prices are high, and why there is nothing a president can do about it (nor a presidential candidate). In short, the reasons are:

  • Oil is a commodity, and trading oil shares largely sets the price of crude
  • Refineries are closing, driving down supplies so that throws the supply/demand equation out of balance
  • Drilling here will take years to get oil online
  • Most of the untapped oil here in the U.S./Canada is more expensive to process

There are some more things to consider as well when contemplating the high price of oil and politicians. One of the things I touched on regarding the trading of oil shares on the commodities market is that the perception of a potential shortage is as bad as - if not worse - than an actual shortage. Therefore, it is in the interests of those that make money off of oil to continue the meme that the Middle East is volatile area and could explode any moment into all-out war. One of the most frequently cited examples is that Iran is close to achieving a nuclear weapon. But what if they weren't? There is some evidence to suggest that Israel has already destroyed their capability:
The mega-leaks website, WikiLeaks, has partnered with the hackers cooperative Anonymous, to publish internal emails of the American strategic intelligence company Stratfor. In one of the hacked emails, Stratfor officials discuss information obtained from one of their sources who reports that Israeli commandos, in cooperation with Kurdish fighters, have destroyed Iranian nuclear installations.
[..]
In one of the emails from November 2011, Startfor officials discuss the explosion at an Iranian missile base near Tehran and quote a source who "was asked what he thought of reports that the Israelis were preparing a military offensive against Iran. Response: I think this is a diversion. The Israelis already destroyed all the Iranian nuclear infrastructure on the ground weeks ago."

There is no way to know if this is true, but if it is, then one has to wonder at the rationale for keeping this suppressed. It certainly does not help crude oil prices to continue the charade.

Another news item belies the false notion that "drill here, drill now" will lower gas prices. While the U.S. may indeed be the largest importer of crude oil, we are actually increasing the amount of "oil products" (eg: gasoline) that we export:
The U.S. exported more oil-based fuels than it imported in the first nine months of this year, making it likely that 2011 will be the first time since 1949 that the nation is a net exporter of such goods, primarily diesel.

That's not all. The U.S. has reversed another decades-long trend. It began producing more crude oil in 2008 than the year before and accelerated that upswing 3% in the first nine months of this year compared with the same period in 2010. That production has helped reduce U.S. imports of crude oil by about 10% since 2006.

So much for President Obama hindering oil production. So both statistics show that expanding drilling into environmentally sensitive areas will not help. Business is business, and if an oil company can keep prices high by exporting diesel, then it will.

Which leads to the final notion: We want lower prices. We want jobs in America. Certain people clamor that expanding drilling in the U.S. will do both, when all evidence shows that it won't. The only way it will work is if the federal government nationalizes the oil companies or sets in pricing regulations, both of which are antithetical to the Republican philosophy. Since oil is also a "fungable" commodity, there is no way of knowing where gas that we pump into our tank started out. It could be Canadian oil, or it could be Middle Eastern oil; there's no way of knowing.

We CAN, however, determine the country of origin for most of the other products we buy and use. For the most part, it's printed right there on the label. To be honest - most of those labels say "Made in China". To those who clamor most loudly for building a pipeline to create jobs and provide oil from non-Middle Eastern countries I pose this question: Do you also refuse to buy products made in China? Who do you think is one of Iran's biggest supporters outside of the Middle East? (answer: China).

You actually have a choice when we buy clothes or hardware or electronics. Do you buy American, or do you buy from a country that supports one of the "axis of evil" countries? Think about that the next time you are listenting to your iPod while getting gas.
 

39 comments (Latest Comment: 03/03/2012 02:54:59 by trojanrabbit)
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Comment by Scoopster on 03/02/2012 14:04:42
Mornin' all & Happy Fridee!

Given the event early in the day yesterday, I know there wasn't much chatter about this latest stinking flow of diarrhea that came out of Rush Limbaugh's mouth.

Quote by Raine:
Rush needs to be taken off of Armed forces Radio once and for all.

Limbaugh Doubles Down On Sexist Attack Against Sandra Fluke, Demands She Post Sex Tapes Online



Now more than ever we need to push to get this pill-glomping chauvinist OFF THE AIR. Call or even picket your local radio stations, boycott his sponsors, and pass the word on to everyone you know to do the same.

Comment by wickedpam on 03/02/2012 14:13:26
Morning

Comment by Raine on 03/02/2012 14:21:50
Good Morning.



Comment by Raine on 03/02/2012 14:37:52
I woke up to a shocking phone call this morning. A dear friend of the family has passed.

She was a big sister to my sisters, and an Aunt to my niece and nephews. She was family, and now she is gone. My heart is breaking for my sisters.

She wasn't supposed to leave so soon, or so quickly.

Comment by Mondobubba on 03/02/2012 14:39:52
Quote by Raine:
I woke up to a shocking phone call this morning. A dear friend of the family has passed.

She was a big sister to my sisters, and an Aunt to my niece and nephews. She was family, and now she is gone. My heart is breaking for my sisters.

She wasn't supposed to leave so soon, or so quickly.





Comment by wickedpam on 03/02/2012 14:56:23
Quote by Raine:
I woke up to a shocking phone call this morning. A dear friend of the family has passed.

She was a big sister to my sisters, and an Aunt to my niece and nephews. She was family, and now she is gone. My heart is breaking for my sisters.

She wasn't supposed to leave so soon, or so quickly.


I'm so sorry for your family's loss

Comment by Mondobubba on 03/02/2012 15:22:18
Quote by Scoopster:
Mornin' all & Happy Fridee!

Given the event early in the day yesterday, I know there wasn't much chatter about this latest stinking flow of diarrhea that came out of Rush Limbaugh's mouth.

Quote by Raine:
Rush needs to be taken off of Armed forces Radio once and for all.

Limbaugh Doubles Down On Sexist Attack Against Sandra Fluke, Demands She Post Sex Tapes Online



Now more than ever we need to push to get this pill-glomping chauvinist OFF THE AIR. Call or even picket your local radio stations, boycott his sponsors, and pass the word on to everyone you know to do the same.



Eww? Rush why do you feel a need to share your lurid sexual fantasies? Pig!

Comment by Scoopster on 03/02/2012 15:26:39
Quote by Raine:
I woke up to a shocking phone call this morning. A dear friend of the family has passed.

She was a big sister to my sisters, and an Aunt to my niece and nephews. She was family, and now she is gone. My heart is breaking for my sisters.

She wasn't supposed to leave so soon, or so quickly.

My heart goes out to you & your family Raine

Comment by Raine on 03/02/2012 16:30:28

Grateful Dead - Words by Robert Hunter; music by Phil Lesh

Look out of any window
any morning, any evening, any day
Maybe the sun is shining
birds are winging or
rain is falling from a heavy sky -
What do you want me to do,
to do for you to see you through?
this is all a dream we dreamed
one afternoon long ago
Walk out of any doorway
feel your way, feel your way
like the day before
Maybe you'll find direction
around some corner
where it's been waiting to meet you -
What do you want me to do,
to watch for you while you're sleeping?
Well please don't be surprised
when you find me dreaming too

Look into any eyes
you find by you, you can see
clear through to another day
I know it's been seen before
through other eyes on other days
while going home --
What do you want me to do,
to do for you to see you through?
It's all a dream we dreamed
one afternoon long ago

Walk into splintered sunlight
Inch your way through dead dreams
to another land
Maybe you're tired and broken
Your tongue is twisted
with words half spoken
and thoughts unclear
What do you want me to do
to do for you to see you through
A box of rain will ease the pain
and love will see you through

Just a box of rain -
wind and water -
Believe it if you need it,
if you don't just pass it on
Sun and shower -
Wind and rain -
in and out the window
like a moth before a flame

It's just a box of rain
I don't know who put it there
Believe it if you need it
or leave it if you dare
But it's just a box of rain
or a ribbon for your hair
Such a long long time to be gone
and a short time to be there


Thank You it means alot.

Comment by Raine on 03/02/2012 16:54:36
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.

Comment by livingonli on 03/02/2012 17:18:28
Good day everyone.

Raine, my sympathies on your loss.

Comment by Mondobubba on 03/02/2012 17:46:28
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.



Glad to see the Boner is with humanity on this one.

Comment by trojanrabbit on 03/02/2012 17:52:13
So sorry, Raine.

Comment by livingonli on 03/02/2012 18:14:54
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.



Glad to see the Boner is with humanity on this one.

He apparently got bombed with faxes today. There is now a campaign to boycott Rush's advertisers a la Glenn Beck and hopefully Ms. Fluke will sue him for libel and defamation and that might finally put an end to that miserable person's radio career and he can hollow himself out in that West Palm Beach mansion like Charles Foster Kane in his later years.

Comment by wickedpam on 03/02/2012 18:32:04
Quote by livingonli:
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.



Glad to see the Boner is with humanity on this one.

He apparently got bombed with faxes today. There is now a campaign to boycott Rush's advertisers a la Glenn Beck and hopefully Ms. Fluke will sue him for libel and defamation and that might finally put an end to that miserable person's radio career and he can hollow himself out in that West Palm Beach mansion like Charles Foster Kane in his later years.



if he actually used her name and inferred that she is something that she is not and damaged her reputation, I don't see why she wouldn't have a case

Comment by Raine on 03/02/2012 18:50:56
Quote by wickedpam:
Quote by livingonli:
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.



Glad to see the Boner is with humanity on this one.

He apparently got bombed with faxes today. There is now a campaign to boycott Rush's advertisers a la Glenn Beck and hopefully Ms. Fluke will sue him for libel and defamation and that might finally put an end to that miserable person's radio career and he can hollow himself out in that West Palm Beach mansion like Charles Foster Kane in his later years.



if he actually used her name and inferred that she is something that she is not and damaged her reputation, I don't see why she wouldn't have a case
I have a feeling she is too classy to do so.

I think she does have a defamation case, but I really believe what is happening now is just what the situation needs.






Comment by Raine on 03/02/2012 18:51:37
Hey, since it appears I will be out of town Monday, can anyone please cover the blog?

Comment by wickedpam on 03/02/2012 18:52:46
Quote by Raine:
Hey, since it appears I will be out of town Monday, can anyone please cover the blog?



I'll do it if no one else can

Comment by Scoopster on 03/02/2012 18:57:45
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.


Glad to see the Boner is with humanity on this one.

Whaaaatever.. He used it as an excuse to bash the Democrats for "fundraising off Limbaugh's comments".

Comment by Raine on 03/02/2012 19:00:02
Quote by Scoopster:
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.


Glad to see the Boner is with humanity on this one.

Whaaaatever.. He used it as an excuse to bash the Democrats for "fundraising off Limbaugh's comments".
I saw that too.

What an ass.


Comment by Mondobubba on 03/02/2012 19:00:12
Quote by Scoopster:
Quote by Mondobubba:
Quote by Raine:
What? John Boehner actually said Limbaughs comments were inappropriate.

wow.


Glad to see the Boner is with humanity on this one.

Whaaaatever.. He used it as an excuse to bash the Democrats for "fundraising off Limbaugh's comments".



Or not...

Comment by Mondobubba on 03/02/2012 19:02:03
Quote by Raine:
Hey, since it appears I will be out of town Monday, can anyone please cover the blog?


Nothing like a unexpected family reunion in the middle of the New York winter! I got to do that when my Grampa Smith died, it was very bittersweet.

Comment by Raine on 03/02/2012 19:24:34
Quote by Mondobubba:
Quote by Raine:
Hey, since it appears I will be out of town Monday, can anyone please cover the blog?


Nothing like a unexpected family reunion in the middle of the New York winter! I got to do that when my Grampa Smith died, it was very bittersweet.

I have a feeling this might be an Irish style wake.

But, yeah -- I knowwhatyou mean Mondo.



Comment by Mondobubba on 03/02/2012 19:49:52
Quote by Raine:
Quote by Mondobubba:
Quote by Raine:
Hey, since it appears I will be out of town Monday, can anyone please cover the blog?


Nothing like a unexpected family reunion in the middle of the New York winter! I got to do that when my Grampa Smith died, it was very bittersweet.

I have a feeling this might be an Irish style wake.

But, yeah -- I knowwhatyou mean Mondo.




Yeah not much liquor at that event. The Eastern Star ladies did a HUGE lunch after the funeral though. Three words: Lake Effect Snow ( Gramma and Grampa Smith lived really close to Lake Erie).

Comment by Raine on 03/02/2012 20:14:07
Randi goes there! she opened the show with this:


And in case you haven't heard-- that vile thing doubled down on his radio show today.



Comment by Raine on 03/02/2012 20:18:01
OMG -- I want to know where Randi got this sound clip of Tim Murphy (?) interrogating Kathleen Sabilius.

I amastounded.

Comment by Raine on 03/02/2012 20:21:45
Comment by wickedpam on 03/02/2012 20:26:34
This guy is an idiot

Comment by Mondobubba on 03/02/2012 20:30:08
Quote by Raine:
Randi goes there! she opened the show with this:


And in case you haven't heard-- that vile thing doubled down on his radio show today.




Again? Doubled down on what he's already doubled down on?

Comment by wickedpam on 03/02/2012 20:31:36
Quote by wickedpam:
This guy is an idiot



let me amend that - this guy is a Fucking Obtuse Idiot

Comment by livingonli on 03/02/2012 21:29:32
Quicken Loans has just pulled their ads from Rush's show.

Comment by Raine on 03/02/2012 21:43:20
Quote by livingonli:
Quicken Loans has just pulled their ads from Rush's show.
So has AutoZone.




Comment by Mondobubba on 03/02/2012 22:34:24
Quote by Raine:
Quote by livingonli:
Quicken Loans has just pulled their ads from Rush's show.
So has AutoZone.





Well maybe the Fat Fuck will start paying attention.

Comment by Will in Chicago on 03/02/2012 22:35:31
Hello, bloggers!! I am coming to you live and direct from Quincy, Massachusetts. My flight went well and I am going to have dinner with some friends.

My flight went well, and I have spent most of the day sight seeing. I also stopped at a J.P. Lick's Ice Cream shop and enjoyed the Butter Wallnut and Rum Raisin flavors.

BobR, good blog. I would argue that we need to not only buy American but also set up some barriers to trade like many other countries.

I will try to check in over the weekend, but tomorrow will be dominated by 8 hours worth of teaching tests.

Comment by trojanrabbit on 03/02/2012 23:44:02
Quote by Mondobubba:
Quote by Raine:
Quote by livingonli:
Quicken Loans has just pulled their ads from Rush's show.
So has AutoZone.





Well maybe the Fat Fuck will start paying attention.


Doubtful. The Koch Brothers will probably write Rush/Premier/Clear Channel/Bain a check.

Comment by livingonli on 03/03/2012 01:27:06
The Devils are smacking down the Caps tonight.

Comment by TriSec on 03/03/2012 01:45:39
Passing through...

In the greatest of ironies, I'll be spending much of this weekend in Quincy myself.

Aboard the USS Salem with Pack 250.

Alas, I won't have any chance to get away. Duty calls, and all that.



Comment by Will in Chicago on 03/03/2012 02:09:36
Quote by TriSec:
Passing through...

In the greatest of ironies, I'll be spending much of this weekend in Quincy myself.

Aboard the USS Salem with Pack 250.

Alas, I won't have any chance to get away. Duty calls, and all that.




Irony may be one of the fundamental building blocks of the universe.

Comment by trojanrabbit on 03/03/2012 02:54:59
Still in Andover testing. But I think I might be home before tomorrow.