Science

Whither Gasoline Prices?

Prices up, poll numbers down, round up the usual suspects!

|

Gasoline prices are up to $3.88 per gallon on average in the United States because the price of crude is running at around $112 per barrel on the New York Mercantile Exchange. It's really simple; the price of oil goes up, then so too does the price of gasoline.

In the face of falling poll numbers, President Barack Obama has ordered his minions in the executive branch to "round up the usual suspects" to investigate oil and gas markets for evidence of fraud or illegal manipulation in pushing pump prices up. It's sad to see the man who promised "hope and change" engaging in the same cynical political posturing as his predecessors. For example, back in 2006, the Federal Trade Commission investigated gas price increases in the wake of the Hurricane Katrina disaster and uncovered no evidence of wrongdoing by oil and pipeline companies or refiners. Bold prediction: The Obama administration's new investigation will also be unable to find any substantial amount of oil market misbehavior.

Of course, explaining that gasoline prices are going up because of oil prices leaves unanswered the question: Why are oil prices going up? Let's turn to some experts. Oil market analyst Timothy Evans at the Citigroup Future Perspectives notes that the Libyan civil war has taken petroleum production of about 1.4 million barrels per day off the market, about 1.6 percent of global supply. Even so, he observes that spare global capacity for oil production hovers around 4 million barrels per day. Compare this to 2008 when the price of crude spiked to $147 per barrel, global spare capacity was down to just 1 million barrels per day. 

Could low inventories account for the current run up in prices? Evans discounts this and points out that as of mid-April total U.S. petroleum inventories were at 54 days of supply. That was two days lower than last year at the same time, but three days above the five-year average. During the 2008 spike, U.S. inventories had fallen to 46 days of supply. Are U.S. consumers and businesses demanding more oil? Actually, no. Americans are burning 9 percent less oil than they did at peak usage in 2007. But surely global demand must be driving the price? Think of all the new cars in China!

Evans notes that, as one would expect, the economic recovery last year boosted global oil demand, which grew by 2.8 percent. However, he projects that global demand for this year should rise by about 1.7 percent. This is by no means an extraordinary increase. It is in line with recent history which saw demand rise an average of about 1.7 percent per year between 1993 and 2007.

So if there is adequate spare capacity, inventories are fine, and global demand is not extraordinary, where else might President Obama look for an explanation for pain at the pump and in his poll numbers?

Evans wryly points out that the situation in the Middle East has been a "bit unsettled" of late. Remember Libya? In early January, the price of oil was $82 per barrel; it sells for $112 per barrel today. "Primarily what we are seeing is a geopolitical risk premium being added onto the price of petroleum," explains Evans. 

Market players are worried that further unrest in the Middle East and North Africa could result in greater supply disruptions. Evans mentions one dire scenario in which Saudi Arabia and Iran engage in the struggle for power in Bahrain between the ruling Sunnis and the Shi'ite majority. This could put shipments from the entire Persian Gulf region at risk. "The $112 price is basically a compromise," says Evans. "Market players are betting that there is a 50 percent chance the price will fall back to $82 and 50 percent chance that it will spike up to $140 per barrel."

Michael Lynch, an oil market analyst at the consultancy Strategic Energy and Economic Research, agrees that political unrest in major oil producing countries accounts for a lot of the recent oil price rise. Lynch, however, also thinks that the U.S. Federal Reserve bears some responsibility. Lynch argues that the price of oil was about $65 per barrel before the Fed began its program of "quantitative easing," in which the central bank basically printed more money in an effort to shore up the economy. Lynch asserts that this Fed policy is "inflating a lot of assets like commodities including oil." He attributes $20 of the recent petroleum price increase to inflating the money supply and $25 as a geopolitical risk premium.

On the other hand, Evans doesn't think that Fed monetary policy has contributed that much to higher crude prices. Since March 2009 when the stock market hit rock bottom, Lynch notes that the major currencies dollar index has fallen by about 17 percent. The price of oil recovered as the global financial crisis waned and averaged $71 per barrel in 2010. A 17 percent decline in the value of the dollar would roughly boost the price of oil to $83 per barrel by itself, which is about where it stood at the beginning of January. In fact, there has been a 60 percent increase over the 2010 average price.

But what about those pesky speculators? Evans notes that since 2003 the number of futures and options contracts in the oil market have increased by more than 400 percent while the physical oil market has increased just 8.5 percent. "That tells me that futures and options trading is playing a larger role in setting the physical price," says Evans. On the other hand, Evans suggests that the futures market may be "warning us that things are going to get a lot worse than we expect" with regard to supply disruptions emanating from the current unrest. 

Assuming the turmoil in the Middle East and North Africa begins to abate, what can drivers expect to be paying at the pump later in the year? Both Evans and Michaels think that oil would drop back to $80 per barrel, which implies a gasoline price of about $3 per gallon. What about future oil production? Evans dismisses peak oil as a "religion."

Both Evans and Lynch point out that despite a deepwater drilling moratorium, U.S. domestic oil production has increased by 300,000 barrels per day since 2005. In addition, they argue that the underreported story is how much additional oil is coming online from smaller producers around the world, including Colombia, Oman, Uganda, and Sierra Leone. While both Evans and Lynch acknowledge that oil markets experience big price swings, they believe that oil will settle for the foreseeable future at around $80 to $85 per barrel. From their point of view, this price encourages adequate investment in exploration and production, while not dramatically discouraging consumption.

A final note: When contemplating the future of oil prices, one should always keep in mind U.S. foreign service officer James Akins' observation, "Oil experts, economists, and government officials who have attempted in recent years to predict the future demand and the prices of oil have had only marginally better success than those who foretell the advent of earthquakes or the second coming of the Messiah." Akins wrote that in 1973.

Science Correspondent Ronald Bailey is author of Liberation Biology: The Scientific and Moral Case for the Biotech Revolution (Prometheus Books).

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

262 responses to “Whither Gasoline Prices?

  1. It has nothing to do with all that money being printed by the Fed so don’t even go there.

  2. My car is powered by my own sense of self-worth

    1. You’re Ed Begley Jr.?

    2. That’s why mine reads “E”.

  3. Why? It’s very single.

    1. Obama hasn’t granted a single deep-drilling permit after disaster in the gulf.

    2. Obama did not agree to drilling in the Atlantic seabord.

    3. Obama doesn’t want to drill in Alaska.

    4. Obama and his Democratic minions don’t want drilling in California.

    5. Obama and his green tree lovers don’t want drilling in the national parks.

    6. Obama doesn’t want drilling off the coast of Florida (Fidel Castro does ironically).

    7. Obama wants to reduce our “oil addiction” whether we want it or not.

    8. Obama is anti-business.

    BIKERS: THE ULTIMATE FREELOADERS.
    http://libertarians4freedom.bl…..aders.html

    1. This. Obama is doing what he’s wanted to do his entire life: punish America for its sins.

      If it’s bad for America he’s for it; if it’s good for America he’s against it. It’s just that simple.

      1. How come flying around the world on your own private 747 isn’t a sin?

        1. Because he doesn’t have a private 747. That plane belongs to the suit, not to Mr. Obama.

          1. I know, being POTUS is the greatest job in the world. Think about it.

            FREE Transportation.
            FREE Housekeeper & Chef.
            FREE Rent.
            Vacation anytime you want.
            Work as much or as little as you like.
            $400,000 a year.
            Pension after retirement.

            Go here for a list of Presidential pensions.

            http://libertarians4freedom.bl…..jimmy.html

            1. Greatest, and possibly worst too. It depends on the how you cherry pick.

              1. How can it be the worst? Sure, getting elected is hard, but even when you’re campaigning you have an entire team doing the heavy lifting for you.

                Do you realize even if Obama loses the 2012 election he’s going to be set up for life? His pension will be at least $200,000 (some ex=presidents get a million) plus money for an office!

                What gives? This is America, our former fathers like George Washington and Jefferson used to have money problem, some died with debts, others went back to FARMING or whatever they did before getting elected.

                I’m just glad we didn’t have to pay for Bill Clinton’s legal fees.

        2. I gots to go on vacation, bitches!

          1. My entourage and I will join you!

    2. But who do we blame for high gas prices?

      1. I blame Bush

      2. I thought it was your fault this time?

      3. Those FUCKING libertarians!

    3. But drilling in Brazil…Yes We Can!

      1. Not just drilling, DEEP drilling in DEEPER waters than the gulf. Yes We Can… in Brazil!

    4. “1. Obama hasn’t granted a single deep-drilling permit after disaster in the gulf.”‘

      You just don’t even try, do you?

      “https://news.fidelity.com/news/news.jhtml?cat=Economy.US&articleid=201102281651CNN_____MONEY____-2011-02-28-news-economy-oil_drilling_deepwater-index_htm&IMG=N’

    5. As usual, Gregory Smith is full of shit..

      CUERO, Texas?Oil-drilling activity in the U.S. has accelerated to a pace not seen in a generation as energy companies, oilfield contractors and landowners rush to exploit newly profitable sources of crude.

      The number of rigs aiming for oil in the U.S. is the highest since at least 1987, according to Baker Hughes Inc. The 818 rigs tallied by the oilfield-service company last week are nearly double last year’s count and about 10 times the number that were drilling for oil in the late 1990s.

      While the drilling surge is unlikely to yield enough crude to alter the global oil-supply picture, analysts say the new activity, centered on so-called unconventional reservoirs, could greatly boost domestic oil production and help offset declining output in Alaska and the Gulf of Mexico. (Feb 2011)

      http://online.wsj.com/article/…..lenews_wsj

      1. The number of rigs doesn’t particularly mean anything. It could very well be they’re having to drill in obscure locations because they’re not being granted access to the hotspots in Alaska and the Gulf.

      2. What KPres said… and also, why would it be surprising to anyone that we had the highest amount of existing oil rigs since 1987?

        I mean, global demand for oil is also the highest it’s been since 1987… or… you know… the highest it’s been ever.

        Pretty weak response, Shrike.

        1. It was in response to Gregory Boy who was parroting the lies he hears on Fox News – “Obama won’t let us drill here!” – that bullshit.

          1. Congress deserves blame, too.

            And BP really screwed up, and now everyone else is getting punished in the Gulf.

          2. Shrike, I live in Texas and by Louisiana. Do you know how many people our out of work because you aren’t allowed to drill off-shore?

            Remember the government stopped all drilling after BP but it was supposed to be temporary? Well, it’s still stopped.

            The rigs that are operating now are on lands that had permits for years. The are pumping oil that wasn’t profitable under 100 dollars a barrel.

            So the WSJ piece doesn’t really give you the big picture. So do a little research.

            BTW – why did oil drop in 2008 from 147 $/barrel? Because Bush said we were going to open up new drilling areas offshore.

          3. Whenever shriek starts bitching about Fox News, it’s because he’s just been called on the bullshit he parrots from MSNBC. Zero-boy is guilty as charged, as are the Eco-fascist Pinprick Assholes: http://gatewaypundit.rightnetw…..as-prices/

      3. As usual, shriek is full of shit. Basically, he’s rehashing a lie we’ve heard from eco-fascist leftards before:

        Last week, Interior Secretary Ken Salazar told Congress that oil production in the Gulf of Mexico “remained at an all-time high, and we expect that it will continue as we bring new production online.” He claimed: “In 2009 there were 116 rigs in the Gulf of Mexico, in 2010 in February, 120, in February 2011, 126.”

        But Salazar’s numbers distort the true number of working rigs in the Gulf of Mexico. According to Baker Hughes:

        * Four days before the Deepwater Horizon accident there were 55 rotary rigs actually drilling offshore in the Gulf of Mexico.
        * On May 28, 2010, when the administration announced the six-month moratorium on deepwater drilling, there were 46 rotary rigs operating in the Gulf.
        * Last week, 25 rotary rigs were operating in the Gulf of Mexico.

        So the fact that there is an “all-time high” number of rigs in the Gulf ignores the fact that most of those rigs are not working. Claiming an increase in idle rigs in the Gulf as a success story is like claiming the job market is great because a lot of people are unemployed and available to work.

        Source: http://blog.energytomorrow.org…..ction.html

        So, who wants to take bets on how many of those 818 rigs in that figure shriek throws out there are actually producing any oil?

    6. The supply of oil is high and the demand for it is low.

      We should allow more drilling but that is not the reason for the recent jump in oil prices and gas prices.

      Inflation is the reason why it takes more dollars to buy oil.

      1. The supply of oil is high and the demand for it is low.

        Strike that. Reverse it.

  4. My father has been right on oil as long as I’ve been conscious of oil prices:

    1. The enviros run things when gas is cheap. Windmills galore, ethanol, refineries and drilling blocked.

    2. Then the gas gets expensive. Suddenly being hipster-green is the superfluous luxury it always was, and industry finds it easier to actually go look for, capture, and process hydrocarbons.

    3. The Peak Oilers show up at the price-height. They say the world is out of oil, get used to $10/gallon etc. Doom!

    4. About a year after that a lot of the new discoveries made are producing now that the real work has been done…and there is torrent of hydrocarbons rushing into the market from all these new sources.

    5. Repeat.

    Between the Bakken and fracking, the USA will enjoy relatively cheap hydrocarbon stream (assuming no govt. tinkering or dollar free-fall) in about twenty-four to thirty-six months I would guess.

    But oh the horrors and portents of doom we will hear this summer when the Peak Oilers start making their scheduled appearance in this cycle.

    1. Sounds about right.

    2. Yep. The Win The Future people want to make sure we get as much Special High Intensity Taxation as we can stand.

  5. There’s plenty of fairly cheap oil to go around if my children would simply cooperate!

    1. Mom, you’re an old whore. We know all about those asteroids you used to fuck. Go crawl back into your bottle, and hopefully we’ll be out of her when your fat ass rolls out of it again in, say, 200 years.

  6. Gasoline prices are up to $3.88 per gallon on average in the United States

    Bullshit.

    Prices in CA for regular unleaded range from $4.10-$4.80

    Is there someplace in the country where regular unleaded is $3.10/gal?

    1. Jersey always has cheap gas; maybe there?

      1. The cheapest gas I’ve found in Jersey right now is $3.69 for regular unleaded.

    2. Flyover country.

      You note that Baily wrote “average”.

      Whenever I read these news stories about how “high” gas has gotten, I always roll my eyes too. Regular unleaded is currently $3.88 a gallon here, with high grade well over the $4 mark.

      CA and WA have very high gas prices. El Paso, TX, on the other hand? Not so much.

      1. Dude, where in Seattle are you getting gas for $3.88? Best I saw this weekend was about $4.06.

        1. Gas here in Hawaii is running around $4.50 a gallon. The “cheap” stuff is at CursedCo, at $4.25 per gallon, plus whatever it costs for all the gas burned in the long lines.

          1. That’s because Hawaii is dependent on foreign everything.

          2. Aren’t there whales near Hawaii? Why not use whale oil?

            1. Everyone would have to change to diesel cars.

              1. $ 3.89 here in Cleveland. Paul is correct, we here in Fly-Over Country are always among the lowest in the country, compared to AAA’s average numbers.

                1. And, yes, I realize that I live in the same state as Urine. No need to remind me.

                  1. About 3.50-3.60 range last I checked in Colorado Springs, and if you go to Costco, it’s about 10-20 cents off.

                    Costco, Amazon, and Netflix, in my opinion, should just run everything.

        2. Safeway, both Admiral and Roxbury. It may have gone up in the last two days– my last fillup. I’m talking regular grade, not high grade. With the Safeway Card discount I got $3.85

          1. I hate Safeway and never go there (their prices are terrible), so I guess I get to keep paying more.

            1. Terrible compared to what? Metropolitain Market is across the street, and while I love the Nouveau Grocery Store Ambiance, I simply can’t afford to shop there except for specialty items.

              1. Metropolitan isn’t great but they don’t require a stupid member card; QFC is cheaper and requires a card. Whole Foods is cheaper on some things.

                I hate Safeway’s whole approach, which is “have OK prices but only with our stupid card, terrible prices without it”. I’d rather just go to Metropolitan.

                1. Just get a frickin card and swipe it when you go through the line. How hard is it to swipe a card?

                  1. Oh, Is REAL easy. Just swipe dat card. Gettin’ my Indepennence caard so whitey can pay for mah grocery. He owe me! He owe me white pussy too.

                    1. He owe me white pussy too.

                      If you were truly alpha, you’d be able to get your own.

        3. http://www.SeattleGasPrices.com reporting 3.93 at the Safeway on Rainier.

          1. Oy, again with my linking today. Sorry.

        4. I live just south of Everett. I paid $3.83 per on Sunday.

      2. $3.74 in Missery. But the stinky Illinoisians come over to poach our cheap gas and cigs.

        Bastards.

        1. Yeah. And we have to drive on yer stinky (underfunded, poorly maintained) roads to get there too!

          1. You drive on our Somalia-esque roads and love every second of it.

            1. Used to work for the phone company by Clarence MO. I would throw my empty cigarette packs out the truck window to help build up the road bed.
              Also enjoyed the roads that went right through the creek bottoms. There was a post next to them with hash marks to tell drivers how deep the water was. Cheaper than building a bridge.

    3. $4.19 in Indiana (near Chicago).

    4. $3.75 for regular and $3.95 for premium down at the corner gas station.

    5. Some refineries are in Oklahoma. It’s not too bad in the Midwest.

    6. In Houston ours is around 3.65, think CA is because of taxes.

  7. The price of gas has more to do with gas inventory (the amount refined), than oil prices. Oil prices are a factor but oil could be $10 a barrel and if they only refined 1000 gallons, gas would be very expensive.

    1. You’re telling me!

    2. A barrel of oil can be refined into a bunch of things. At the last price peak, a lot of asphalt manufacturers started cutting back and turning some of that into oil — then the prices plummeted and asphalt got expensive and the production switched back.

      1. I own a landscaping business. Fertlizer prices mirror petroleum, as they are made from petrol (as well as other things).

  8. The drop in gasoline inventories was the largest on a per- barrel basis since Oct. 9, 1998. Gasoline supplies have slipped 31.4 million barrels, or 13 percent, in the past eight weeks, the report showed. It’s the longest stretch of declines since the summer of 2008 when prices were at a record.
    “Demand for the fuel rose 3.7 percent to 9.18 million barrels a day, the biggest increase since the week ended Oct. 22, the report showed. ”

    “http://www.bloomberg.com/news/2011-04-13/crude-oil-rises-for-the-first-time-in-three-days-before-u-s-supply-report.html”

    1. The drop in gasoline inventories was the largest on a per- barrel basis since Oct. 9, 1998.

      Inventories are down because demand is down….why refine more oil if no one is going to buy it.

      The capacity is still there and can easily be ramped up.

      No the rise in gas prices is inflation pure and simple.

      1. “”Demand for the fuel rose 3.7 percent to 9.18 million barrels a day, the biggest increase since the week ended Oct. 22, the report showed. “”

        That doesn’t sound like down to me. P

      2. “”No the rise in gas prices is inflation pure and simple.””

        If that’s true, according to the chart in the link below, the price of gas should have been just as high in January of this year.

        http://www.tradingeconomics.co…..lation-cpi

        1. Sorry, January of last year.

      3. “”Inventories are down because demand is down….why refine more oil if no one is going to buy it.””

        Citation?

  9. If Obama really wanted to make a difference he would encourage bigger gasoline inventories, starting with removing or giving waivers so more refineries could be built.

    1. Isn’t the problem with refinery capacity primarily due to state and local NIMBYs more than federal regulations and permits? When I lived in CA, that was the primary problem.

      1. Could be. If that’s so, then that is who he should talk to. Not that they have to listen and the industry makes a killing when they can keep supply low. But pointing to commodities traders as a fault is just a way to keep everyone focused away from the cause.

        1. True. Blaming commodities traders is a time honored bipartisan presidential tradition when oil prices get high. It’s perfect for politicians, makes a lot of noise, requires very little actual work and accomplishes absolutely nothing.

          1. “”and accomplishes absolutely nothing.””

            That a feature not a bug. Oil companies contribute big bucks. Albeit bipartisan, I do think they have different motivations.

            Bush, did it because he’s an oil family man. Obama, because he wants us to feel the pain of using oil so we will go green.

            I could be wrong.

            1. Blaming higher prices on speculators is just brain-dead. Speculators push prices up when they think the prices underestimate future demand or overestimate future supply — and push prices DOWN when they think the opposite.

              Blaming speculators is like blaming thermometers for the weather getting hotter.

              1. And traders don’t really care which way it goes, they can make money up or down. They just need to bet on the correct side of movment.

                “”Blaming speculators is like blaming thermometers for the weather getting hotter.””

                Indeed

    2. It is interesting to note how for all his vitriol Chavez is beholden to US for no one else can refine such shitty sulphur-laden oil like Venezuela’s in the quantities the USA refining industry can. Even as straight-jacketed as it is.

    3. Who in his right mind would want to invest several billion dollars in a new petroleum refinery in the US?

      Really. Who?

      1. Anyone, if this were still a free country.

  10. Buy low….sell high!

    1. How can you sell high if they don’t legalize pot!

      1. How? He’s:

        Breakin’ the Law!
        Breakin’ the Law!
        *chunky guitar chord*
        Breakin’ the Law!
        Breakin’ the Law!
        *chunky guitar chord*

  11. Increasing US oil production will not reduce the price of oil.

    Speculators increase the price of oil.

    1. I haven’t heard it as much the last couple of months, but a few years back when gas was first pushing oer $3, it seemed like everyday on NPR some expert was happily explaining that the high cost of oil is dictated by its inelastic curve — small supply or demand change produces large price change — then moments later, out of the exact same mouth, they’d say that drilling in alaska would be completely useless since it would only produce a small supply change.

    2. Speculators increase the price of oil.

      Headdesk. Apply directly to the forehead.

    3. You forgot to mention tax breaks for oil companies. Apparently that’s part of the problem, even though getting rid of them would only drive the price of gas up.

  12. Well, well, well, now that we’re only the second or third biggest film market, Hollywood is now going to censor films to please the Chinese government, so they can be shown in both America and China. And they’re even partnering with Chinese film companies to do it:

    http://yglesias.thinkprogress……he-movies/

    Pretty soon, before you know it, we will de facto be living under Chinese censorship policies voluntarily adopted by business to gain access to the world’s biggest market.

    Scary, huh?

    1. OH NOES THE SLOPES ARE CENSORING FAST FURIOUS 5! RUN!!!

      1. Well, if the Zips are only censoring THAT, then it’s OK.

        1. If they would censor Michael Bay, I think I might be able to get into this fascis…I mean authoritarian statism.

    2. That’s why I only watch Bollywood films. India hates China’s ass.

      BTW, you read about China’s train problems?

      China’s Train Wreck:

      http://www.washingtonpost.com/…..story.html

      1. Silly, sour grapes propaganda from the western media. The same western media that lectures others about “human rights” while torturing Bradley Manning and the GITMO political prisoners.

        1. I’m confused, you’re against corporations censoring movies to please China, but you don’t think China has a bad human rights record.

          Methinks, you’re just against corporations. China, on the other hand, you’re perfectly fine with.

          1. I’m saying all governments are based, at the end of the day, on force and violence so the US has no right to lecture anyone on human rights.

            Government=force and violence, it is the jackboot. Pretending otherwise is hypocritical.

            1. This is a spoof, right? I can’t tell anymore.

            2. Government=force and violence, it is the jackboot.

              So the government which applies the most jackboot to the most faces is the best (China)?

              1. “If you want a picture of the future, imagine a boot stomping on a human face — forever.”

                Great book.

            3. “All political power flows from the barrel of a gun.” Mao

      2. And it doesn’t matter what you watch. The business world revolves around China’s axis now. The American market is well on its way to becoming an afterthought.

        Films, cars, computers, etc will be made with Chinese tastes in mind FIRST, and then maybe minorly adapted for Americans instead of the other way around. And what China’s government orders, business will do, and it will very much affect what we buy and see.

        1. That’s because our population 1.5 billion, maybe 1.2 billion.

          Your population just rounding error.

          1. Exactly!

        2. NO CAN ARGUE WIF DA TROOOOOOF!!!!

          CHINA!!! AT 1/6th of our GDP, SOON TO TAKE OVER THE WORLD!!!

          DA TROOF HAS SPOKEN!!

          1. It’s 1/2 our GDP when adjusted for purchasing power.

            And even at 1/2 our GDP its already the worlds largest automobile market, the worlds largest computer market, the worlds largest luxury goods market, the worlds largest movie market, etc etc etc.

            EVEN at only HALF our GDP.

            1. Hurr durr hurr!! Durr hurr! Hurr durr hurr hurr durr! Hurr durr hurr!

            2. You’re right, it’s 1/2 of our GDP.

              You know what else China has?

              Fear of the fucking internet. Fear of Google. Fear of Religion. Fear of fucking POETS. Fear of losing power. Fear of its own people. Fear that its infrastructure was built in such a way that they can’t possibly keep it together. Fear of another Banqiao dam disaster with the Three Gorges Dam.

              Wake me when they start introducing political representation on a remotely fair basis.

              1. Fear of the fucking internet.

                This one makes me laugh.

                They’re the largest internet market in the world, already twice the size of the US. In fact, Facebook, with its tail between its legs, is already going through the process of agreeing to censor its posts to please the Chinese government.G Google will follow shortly.

                Not that it will matter. In China you have to pair with a joint venture “partner”. After the last industrial secret has been stolen/sold, the foerign firm is thrown out.

                “The capitalists will sell us the rope we will use to hang them”–V.I. Lenin

                1. Tell me da troof, you’re related to Walter Duranty, right?

                  Have to be. Only someone of his ilk could be this ignorant.

                  1. No response to my facts, so you resort to name-calling.

                    Looks like I’ve won here.

                    1. Your facts? China has a bigger “internet market”?

                      Seriously?

                    2. Yes, as in the largest number of internet users in the world (it has twice the number of people ONLINE as the ENTIRE US POPULATION).

                      Corporations aren’t going to give a wit about “free speech” or let it get in the way of making massive profits.

                    3. Jesus christ are you stupid. They may have a bigger “internet market” (whatever the fuck THAT is supposed to mean) but the GDP per capita (PPP) is around $7400. Ours is $47,284.

                      Math skills probably aren’t too strong in the Duranty genes.

                    4. That country with a GDP per capita of only $7,400 is already the worlds largest market for the Mercedes S-Class.

                      They have a lot of poor people but they have a hell of a lot of rich people, more rich in absolute numbers than we have here.

                    5. but the GDP per capita (PPP) is around $7400. Ours is $47,284.

                      And my job is to grow that number by a factor of ten (or maybe 100).

                    6. And Luxembourg, Norway, and Switzerland have a bigger per capita GDP than the US, but they aren’t exactly world superpowers, are they?

                      What matters in raw power is total GDP per PPP, especially when it comes to war.

                      And trade IS a form of war.

                    7. Instead of wasting my day arguing with you Da Troof, I’ll leave you with a PJ O’Rourke piece that is as funny as it is enlightening.

                      http://www.weeklystandard.com/…..7ypyxm.asp

                      A U.S. dollar is an IOU from the Federal Reserve Bank. It’s a promissory note that doesn’t actually promise anything. It’s not backed by gold or silver. If Hu Jintao brought a $100 bill with him to Washington, and if he took the $100 bill over to the Federal Reserve, what he got for it was a hundred dollars. He may have gotten it in twenties, tens, or dimes. But all the Fed will give anyone for their American money is other American money. Hu Jintao is stuck with his IOU.
                      Maybe America’s policymakers are worried that China will spend that cash and this will somehow damage sectors of the American economy. I spent three weeks eating Chinese regional delicacies, and I’ll admit that, if the Chinese spend all their U.S. dollars, our pet shops will be stripped bare. But let us consider the parable of Japan in the 1980s. Japan kept giving America radios, TVs, stereos, and cars, and we kept giving Japan money. The Japanese didn’t want anything America made except Michael Jackson tapes, and we didn’t even make the valuable part–the tape cassette part–of those. So the Japanese decided to buy America itself. They bought office complexes, hotels, and golf courses. The Japanese bid up the price of American real estate until the bubble did what bubbles do. By the 1990s America had all the radios, TVs, stereos, and cars, and all the office complexes, hotels, and golf courses, and all the money.

                      I doubt you’ll agree with what the rest of what he writes. But I don’t care. Maybe you’ll trip while reading it and get some sense knocked in to you.

                    8. *yawn*

                      China, unlike Japan, will not be bullied into letting its currency appreciate too rapidly, which is what did Japan in.

                    9. And Japan had half our population, not OVER THREE TIMES.

                    10. DA TROOF WILL NOT LISTEN!!!!

                      RED DAWN IS COMING!@!!!!

                      JAPAN GOT BULLIED BUT CHINA WILL NOT!!!! THREE TIMES AS MANY PEOPLE!!!!

                      SCIENCE WINS!!!!

                      YOU CANNOT ARGUE WITH DA TROOF!!!

                      SO WHAT IF THE ONLY RICH PEOPLE ARE THE PARTY LEADERS!!??!!??!!

                      RED DAWN IS COMING!!!!!

                      WWOOOLLLLVVVERRRRRRREREEEEEEEEEENNNNNNNSSS!!!!!!!!!!

                    11. And trade IS a form of war.

                      This is all kinds of stupid.

                    12. “And trade IS a form of war”

                      No it isnt.

                  2. Goddamm right-margin wall-of-confusion.

                    A+ is for Tman’s Duranty remark.

                2. You say in your first paragraph that the Chinese government is not afraid of the internet.

                  In the second paragraph you note that they censor the fuck out of the internet.

                  Fucking logic, how does that work?

                  1. It’s the other way around.

                    The INTERNET is scared of the CHINESE GOVERNMENT. They cower before them and do whatever they tell them to. For now its limited to China, but as they become more and more powerful and America declines (barring a major correction by the US) they will demand that they censor the whole world.

                3. China is biggest consumer of the internet. But there is not one Chinese e-biz company relevant outside China. There is not one processing architecture, network stack, industrial design, operating system, or social media innovation that can be sourced to China.

                  So long as China represses the mental capacities of their human capital, they will be beholden to the outside world for the next innovation. The totalitarian consigns himself to forever be the imitator, and China is that on a huge scale and nothing more. And will remain so in the current iteration of their society.

                  1. RE: innovations

                    China will merely make selling IP to Chinese state-owned companies a condition of doing business in China, as they are already successfully doing with everything else from aircraft to cars.

                    Read the Lenin quote in this thread. Fits beautifully.

              2. So, you’ve proved my point. We will submit to their standards of censorship instead of them abandoning censorship. It’s inevitable.

                1. Tell me Truth, where does India – set itself to be biggest people-pile in the world couple years from now – fit into your sinister Sino-phobia? Will they kowtow as well given the raw numbers of teeming hordes they themselves have? Will Aishwarya Rai’s hotness be censored!? NO!

                  1. India is a degenerate, shithole, broken “democracy” that refuses to adopt the methods of successful industrialization on the Chinese model.

                    Its GDP, both per capital and gross. Is a fraction of China’s.

                    In short, India is a joke and no threat to the coming Chinese Century.

            3. You left out world largest Falun Gong killer.

              1. Falun Gong=Chinese Branch Davidians. Tell me, how did our government treat them?

                1. HUUUUUUUUUUUUUUUUUUUUUUUURRR!!

                  1. Shorter Da Troof:

                    nuh uh! nuh uh! nuh uh!

                2. ^^This is some stupid shit right here.

            4. I don’t think that means products will be made with “Chinese tastes in mind first”.

              Because the Chinese market is so large, companies can design products specifically for that market, while designing different products for the US and Europe.

              1. Why go through all that expense for 5% of the worlds population when you’ve already designed something for 25% of the world’s population?

                China will also demand that films here be censored as well, or that company will no longer be able to do business in China. There will be no more stories about Tibet in the MSM in about 10 years, for example.

                1. Why go through all that expense for 5% of the worlds population when you’ve already designed something for 25% of the world’s population?

                  Gee i don’t know…maybe so they can make more money?

                  But yeah you are right we should worry about a this mythical corporate/tyranny that will out compete us because they have no interest in expanding their market share…..

                  I am beginning to understand why the Law of Comparative Advantage is so hard for you to grasp.

                  You actually have to know how to add and subtract to understand it.

                2. Just spent a month in China. If the future is one where Chinese culture rules all, the planet is going to have to watch a lot more anti-Japanese War dramas–because in the wake of the Arab Spring, the government has been running non-stop propaganda about how bad things were; how horrible the abuses of the Japanese; how the Kuomintang (Taiwan gubmint) didn’t protect anybody.

                  They did break for a while to cover the quake in Japan. And, then, back to evil soldiers, raping in the fields, heroically opposed by peasants.

        3. If you love China so much, why don’t you move there?

          1. SOMALIA!!! Hurr durr hurr durr hurr!!

    3. And they’re even partnering with Chinese film companies to do it

      The ones who sell the films or the ones who steal them for bootlegging?

    4. fap fap China oh yeah fap fap fap…

  13. Blaming speculators is an old trick sometimes played by third world authoritarians to deflect blame. Now even America is starting to use this stupid tactic, funny how when the times are good and the economy is booming, then the speculators are seen as endorsing the governments ways.

  14. THEY HATE US FOR OUR SPECULATIONS!!!!!

    1. ^^yep, I like this^^

  15. I don’t see how this is possible. Printing money and the value of the dollar has to have something to do with it – under Bush, the price per barrel was this high but gas prices weren’t…it seems to be a pretty big difference as far as how fast the price went up compared to then. In Ohio, we never paid more than $3.29 per gallon when it was $115 a barrel, now we’re paying $3.99 at $112 a barrel. I realize supply MAY be a little lower, but when has there NOT been unrest in the middle east? There were two MASSIVE wars going on back then also. I agree with you 80% of the time, Bailey, but not on this one…

    1. IIRC, a major TX refinery was shutdown during that period which would create a shortage of gasoline.

    2. Crude oil hit $147/bbl in July 2008 before QE began.

      Therefore QE has nothing to do with it since crude is 30% lower now.

      1. Why do I bother?

        The fact that oil was cheaper before QE tells us very little about the effect QE has had on oil since it was instituted.

        Tell us, shrike, do you believe QE has had no effect on asset prices?

        1. If there were real inflation it would show up in home prices and CRE. There is no inflation in the USA to speak of (1-2% CPI rise is fine).

          During the height of QE (q4 2008) a barrel of crude fell to $35.

          You have no data to support your contention that QE leads to inflation – QE helped with economic recovery which tracks a return to a norm on oil prices.

          1. Are you that ignorant of economics that you think that increasing the number of dollars chasing the same amount of goods has no effect on the prices for those goods?

            1. The $600 billion the Fed bought in Treasuries the last year is chickenshit in a $120 trillion gross world economy.

              1. WTF does the devaluation of the U.S. dollar by printing money have to do with the size of the world economy?

                You create money out of thin air, it makes all the existing money of that type worth less. It doesn’t make yen or euros or any other currency worth less, because it isn’t in effect counterfeiting THOSE currencies. Only economic ignoramuses don’t get that.

            2. shrike is the same buffoon who boldly claimed he can beat anyone at financials here. Then at the same time he rants how he is suffering at the hands of some Christian taliban in some poor southern state, you would think this financial wizard would have long escaped in his big yacht paid by all the millions he made in the stock markets.

          2. Hey shriek, tell us more about how Obama’s cock tastes! Please! Wait, why am I asking; it’s all you do anyway.

            1. You’re all about the cock, aren’t you?

              Never a comment on topic.

              1. Hey shriek, be homophobic again! Wait, you are all the time. Never mind.

          3. SEE THE FIRST COMMENT AND BOW DOWN TO MY SUPERIOR INTELLECT!!!!

          4. QE helped with economic recovery which tracks a return to a norm on oil prices.

            Funny how oil tracks a recovery yet employment does not.

            What was unemployment like in 2008?

            What was the size of the work force back then?

            Idiot.

            1. Funny how oil tracks a recovery yet employment does not.

              Also funny how oil consumption does not track recovery but the price does.

              Idiot.

              1. There are billions of people who demand oil in the world, idiot.

                Normalized demand is a world function.

                1. Guess currency is the oil traded in, you moron.

                2. Normalized demand is a world function.

                  Demand declined globally in 2009 and has not recovered.

                  Idiot.

          5. There is no inflation in the USA to speak of (1-2% CPI rise is fine).

            The market disagrees with you:

            the major currencies dollar index has fallen by about 17 percent.

            Idiot.

            1. A weaker currency can occur in a non-inflationary environment – idiot.

              see the yen.

              1. see the yen

                so wait your example to compare our “recovery” with is Japan?!?!?

                I do believe that is game set and match shrike and you just lost spectacularly.

              2. Re: shrike,

                A weaker currency can occur in a non-inflationary environment – idiot.

                see the yen.

                Ha ha ha ha!!! “Non-inflationary”? Who are you trying to bullshit here, shriek?

                http://sdw.ecb.europa.eu/quick…..P.Y.M_M2.J

                That’s what happens when people learn their economics from the Samuelson books. Sad, but true.

          6. If there were real inflation it would show up in home prices and CRE.

            Why?

      2. Every graph I have seen for the 2008 oil peak show it to be below $140.

        Also oil consumption in 2008 peaked in the US. Today oil consumption it is at 2003 levels.

      3. Re: shrike,

        Crude oil hit $147/bbl in July 2008 before QE began.

        You mean during that commodity bubble?

        Therefore QE has nothing to do with it since crude is 30% lower now.

        No, it has more to do with the fact it is about 100% higher now than in Jan 2009.

        http://oil-price.net/dashboard.php?lang=en

  16. Does anyone know how much it costs to put this stupid ethanol blend in to our pumps?

    I’ve read estimates from .50 cents up to $1.10. but I can’t find a solid number for it.

    That seems like a no brainer to me. Can the stupid ethanol subsidies, take it out of our damn gas- voila! Gas goes down $.50 a gallon. That’s better than what it is right now.

    1. Tman, why do you hate Big Ag AGM – Supermarket to the World? Iowa politicians rent-seeking corporate farms God-fearing family farmers?

    2. But teh corn! And teh children!!!!11!!

    3. But would that drop the price? Yes, the cost of adding ethanol would be eliminated, but that means the demand for oil would also increase. I don’t know if it’s the same nation wide, but in GA, our gas is 10% ethanol. If the ethanol was removed, then the demand for actual gasoline would go up by 11%.

      I wonder which would have the greater effect on prices?

      1. Well, the ethanol in your gasoline is significantly less efficient at powering your vehicle. I beleive it takes 5 times as much ethanol to generate the same amount of energy as gasoline – so you travel a shorter distance on a tank of ethanol blended gas than you do on non-ethanol blended gas.

        1. Do you know if ethanol has a negative impact on engine life? With the exception of maybe newer cars, I doubt that the auto manufacturers have redesigned their engines.

          1. Not sure about that – I’d imagine that newer cars might be less susceptible since the blend has been around so long. Wouldn’t be surprised if that weren’t the case for older cars.

            1. Ya got an old gas-guzzlin’ car? Well, maybe you should buy a shiny new one! Go see my friend Ben Bernank – he’s printing a fucking shitload of Greenbacks.

              1. Not printing. Bernanke actually shits cash.

        2. I think that ethanol is about 25% less energy per gallon than gasoline.

        3. I [believe] it takes 5 times as much ethanol to generate the same amount of energy as gasoline…

          Closer to three, if I calculated right – 1 mol octane (C8H18) = -4919 kJ; 1 mol ethanol (C2H6O) = -628.
          Molar mass: Octane = 114, Ethanol = 46; Octane = 2.47 x MM ethanol. 2.47 x -628 = -1556.

          -4919 / -1556 = 3.16 times the power.

          1. Shit – my bad. I had a couple kcal bond energy values in with the kJ values. -11255 kJ for octane, and -2748 kJ for ethanol (x 2.47 = -6810).

            It should be noted that the “cleanliness” of ethanol vs. petroleum is directly related to why it puts out less power. The bond enthalpies for CO2 are much higher (2 C=O double bonds @ 799 kJ / mol) than for water (2 H-O single bonds @ 464 kJ / mol.) Ethanol doesn’t produce as much CO2 as octane (which I’m using as a proxy for petroleum) – but it’s because it doesn’t produce petroleum that it doesn’t have the same energy output.

            1. I found another error. If you read through what I’d written, I apologize. I’m going to bed now.

    4. Ummm, since the ethanol is currently cheaper than the gasoline, the net effect might be that the ethanol makes it cheaper despite higher costs to blend it in.

      1. That’s what I was thinking.

      2. I understand that, but as Restoras notes above Ethanol does not make your car anymore efficient. And from what I’ve seen (I have to find the direct law), there is a surcharge per gallon of gas that is added to the price that directly pays for these ethanol subsidies. Take these away and away goes said surcharge along with the added benefit of more efficient engines.

        1. Definitely a hit to the ole fuel economy.

          I think I find myself in agreement with you.

          If a gallon of gas, where actually a gallon of gasoline; US oil consumption would increase by about 176 thousand barrels per day, or .9%. So your probably right, unless refining capacity becomes an issue.

          Even if removing the ethanol bumped up the price of gasoline, the price of food should come down, and would hopefully offset any increase.

        2. Ethanol is also a rather inconvenient solvent. It likes to eat fuel lines and O-rings. Burns hot to, so it cakes oil deposits in all the moving metal bits if your rings aren’t all nice and perfectly sealed etc.

          Its good rocket fuel or jet fuel but not reciprocation-motor fuel at all.

          1. It’s also a waste of moonshine.

            1. I’m not arguing against the fact that it is stupid and counterproductive to use fossil fuels to grow corn and then turn it into alcohol and then blend it with gas, using all sorts of subsidies. I’m just saying that the market price for ethanol including all those idiotic subsidies is a lot less than the market price for gasoline.

  17. CA and WA have very high gas prices. El Paso, TX, on the other hand? Not so much.

    Looks like you’ll pay between $3.60 and $3.90 in El Paso. For regular gas.

  18. Evans dismisses peak oil as a “religion.”

    And geologists are our priests? production graphs are our bibles?
    and who the hell is our god?

    wow, so unsexy. i need a better religion.

    1. There’s always an energy economist somewhere willing to go on record to say such stuff.

      Unfortunately, they are not the ones who have to go out and find the goddamned oil.

    2. There’s always an energy economist somewhere willing to go on record to say such stuff.

      Unfortunately, they are not the ones who have to go out and find the goddamned oil.

  19. shrike, – it would show up in home prices, in this housing market? You can’t be serious. The stock market went up, as was the intention. Prices went up – not the “core inflation,” but commodities skyrocketed after QE2 like a lot of people said would happen before QE2…

    1. No money effect. Was there a psychological effect? Sure there was because the Fed signaled support. The deflation Bear was turned back.

      But we have very low inflation, there is low inflation forecast and there is no downside to QE. The Fed will sell the Treasuries and retire the funds used to purchase them thus lowering the money supply.

      Or they may roll them over – it depends on the economy.

      1. If there is no downside to QE then why doesn’t the government just print the money it needs for spending programs instead of raising taxes?

        1. $14 trillion would have a downside.

          QE = what the Fed has done to date and not the generic in this case.

          1. “$14 trillion would have a downside.

            QE = what the Fed has done to date and not the generic in this case.”

            Didnt the Fed pump out trillions during the financial ‘crisis’ tho? I dont recall the number, but i want to say that the fed loaned out 12 trillion in printed money.

          2. Thanks but you didn’t answer my fucking question.

      2. Re: shrike,

        But we have very low inflation, there is low inflation forecast and there is no downside to QE.

        World – meet again the nitwit who still believes inflation is whatever government econometric data says it is, instead of a sustained increase of the money supply. Here, have a look at the nitwit.

  20. There are 3 million barrels of oil a day fewer in the world export market than there were in 2005. That’s a 7% decline. Oil-exporting nations have been burning more of their own oil while barely increasing production.

    At the same time, China and India have been increasing their imports. Together they now consume about a sixth of all oil exports.

    Increased demand + lowered supply = higher prices.

    As to QE, if we smooth out the huge 2008 spike and plunge, the result is a steady increase in crude oil prices, adjusted for inflation, since about 2002. Oil prices have been running ahead of inflation for nearly a decade now.

    The Middle East has caused some of the price problems, but oil was still $85-$90 a barrel before the Arab Spring began.

    Obama could wave his magic wand and open the floodgates of US production. But that would probably only get us 3-4 mbpd of new production. OPEC would simply cut production to keep prices where they want them. I support opening them up – the resources don’t belong to the government by right – but let’s not kid ourselves that a blitzkrieg of new US drilling would lower prices significantly.

    1. You’re harshing their buzz. In Paultardian everything is the Fed’s fault and supply/demand is just some state-speak.

      1. Hey shriek! Say something unbelievably stupid and then use Christfag or Paultard! Wait, that’s all you do.

        You need to get a new routine, you fucking imbecile. Your hyper, financial-genius-except-you’re-a-moron, homophobic retard personality is getting old.

        1. Go back to your Goldline gold-plated coins, you Beck-loving shitstain.

          1. I love how bonecrushingly stupid you are, shriek. It’s like you’re a robot programmed to be as stupid as possible. In fact, I’m beginning to suspect that you are a robot, because your actions are so moronically predictable that they must be programmed into you.

            You’re like Data, only if he were programmed to desire mongoloidism instead of human emotions.

            1. “You’re like Data, only if he were programmed to desire mongoloidism instead of human emotions.”

              Can I use this????

              1. Of course. Use away.

          2. Go back to your Goldline gold-plated coins, you Beck-loving shitstain.

            Why the hate on Beck? This never gets old.

        2. I posted this earlier:

          shrike is the same buffoon who boldly claimed he can beat anyone at financials here. Then at the same time he rants how he is suffering at the hands of some Christian taliban in some poor southern state, you would think this financial wizard would have long escaped in his big yacht paid by all the millions he made in the stock markets.

          1. you’re taking ass-sniffing lessons from Episiarch.

            I like annoying you two gay-fags.

            1. I like the way you think, we should get together some time 😉

            2. It’s fucking hilarious how shriek is exactly like what he claims to hate: he’s a redneck, homophobic, intolerant hater who thinks he’s smart but is actually dumber than Ezra Klein.

              Do you see the projection, shriek? Do you see?

              1. Whoa whoa whoa! Dumber than Ezra Klein? For realz?? Dammit, now my whole universe has been up-ended!

            3. Wait…they’re fags and gay!? IS THAT POSSIBLE!?

              1. “Let’s go watch some gay porn to get our hate back!”

      2. supply/demand is just some state-speak.

        state speak in shrike’s voice:

        “yeah the state says money is a the magical commodity and no matter how much you produce its value is never ever effected by the laws of supply and demand.”

    2. Obama could wave his magic wand and open the floodgates of US production. But that would probably only get us 3-4 mbpd of new production. OPEC would simply cut production to keep prices where they want them.

      This dynamic has been played out before. When OPEC slowed production in the 70s, prices did go up, and efficiency increased dramatically, leading to great Saudi consternation.

  21. Has anyone done a realistic study of “The Real Price of Gas” without all the political baggage attached?

    Ie, if we erase the subsidies, and then also erase the federal and state taxes, what would the price of a gallon of gas be?

    By Googling I’ve found plenty of enviro-funded studies which do exactly that then attach “externalities” into the price, such as how many caribu in Alaska have psychological problems due to the rumbling of heavy equipment on the tundra; Cost: $12.00 per gallon!!11!!11

    I’m talking about erasing oil company subsidies and federal and state taxes.

    1. I have no real idea on that number. But its great question.

  22. The irony is that the culprit is an improved economy. Gas is, of course, too cheap. I expect the GOP to blame Obama and claim that digging up Alaska will solve the problem, and people will probably believe them. It’s so much easier to sell bullshit because bullshit can be as simple as you like.

    1. Make sure to inform your government about the fact the oil price is too low, they seem to think that speculators are driving it too high. The irony is that you will end up having to support the speculators to drive the prices higher.

      1. I doubt speculators offset the subsidies. This investigation thing is a pretty desperate move for an administration who knows it will get the blame because it’s there and Americans think they are entitled to cheap energy from subsidized nonrenewable sources forever.

        Americans are the most delusional entitled brats in the history of the planet. We shouldn’t be the world police because we obviously can’t handle the requisite maturity. Sorry, just had to get that out.

        1. Re: Tony,

          I doubt speculators offset the subsidies.

          Your doubts are well founded, as speculators do no such thing, ever.

          This investigation thing is a pretty desperate move for an administration who knows it will get the blame because it’s there

          The current people in the WH can look at how THEY treated G.W.B. when gas was just as high, back in 2008.

          and Americans think they are entitled to cheap energy from subsidized nonrenewable sources forever.

          Fools. Just like they are foolish to think they’re entitled to someone else’s production.

          Americans Those enamored of fascism are the most delusional entitled brats in the history of the planet.

          There. More succinct.

          1. The current people in the WH can look at how THEY treated G.W.B. when gas was just as high, back in 2008.

            Well, the Rs are just rolling their strategy out, but I’m sure the Dems’ will seem like afternoon tea by comparison. Still, the Rs are the ones standing in the way of smart energy policy. It’s their fault we have to worry about the price of Arab dictator oil at all.

        2. Funny how you always support entitlements for Americans, yet when it comes to cheap oil, then you call them delusional entitled brats.

          1. the imbecilic, destructive, Bush-Obama Middle East policy and military adventures, okay, Tone-Tone?

          2. ToneTone is an elitist plunderer-at-heart. Take, take, take and when the money runs out, blame the bankrupt taxpayers.

          3. Well, I don’t think it’s their fault. Poor policy and vast ignorance go hand-in-hand in a democracy. But it’s the politicians who’ve tried to convince us that the status quo is free.

        3. I doubt speculators offset the subsidies. This investigation thing is a pretty desperate move for an administration who knows it will get the blame because it’s there and Americans think they are entitled to cheap energy from subsidized nonrenewable sources forever.

          Americans are the most delusional entitled brats in the history of the planet. We shouldn’t be the world police because we obviously can’t handle the requisite maturity. Sorry, just had to get that out.

          Don’t apologize, bro. It’s okay to leak some of your hatred for Americans out once in a while. America sucks, and Republicans embody the idealized America that leftists hate. Feels good just being honest, doesn’t it? Most libertarians I know feel the same way. I Hated the Bush years, absolutely hated them… I don’t like Obama much better, but at least his rhetoric has armed America and brought all the nanny state republican policies into question too. I think with Bush/Obama, you’re going to get more free-thinking libertarian types speaking out.

    2. Re: Tony,

      The irony is that the culprit is an improved economy. Gas is, of course, too cheap.

      “Of course,” with no evidence to back up such extraordinary claim whatsoever.

      The definition of post-modernism? Making shit up, and not bothering to say it’s just fiction.

      1. Turns out post-modernism entailed something way more insidious than you think. The claim of being right is cheap. It’s the dogmatists who’ve had to take to relativism to survive in a scientific world. Interesting thing.

        1. Eh you’re the one who made the dogmatic statement “gas is too cheap.”

          1. Eh you’re the one who made the dogmatic statement “gas is too cheap.”

            Not too mention “improved economy.” That was a real scream.

    3. Gas is, of course, too cheap.

      I think you meant to say the dollar is two valuable.

    4. The irony is that the culprit is an improved economy.

      Obama should run on this theme:

      High gas prices prove how good my administration has been for you.

      Genius.

  23. that he should be wearing a DUNCE cap. He’s a truly dangerous moron.

  24. Peak oil is here.

    There is no denying it.

  25. Why don’t you just simply try riding a bike?

    Earth First

  26. Crude oil generally follows the price of “products” like gasoline or distillate, not the other way around.

    There is a very powerful “seasonal” trend that tends to rally gasoline prices into a May peak, in anticipation of driving season. When it becomes apparent that there will, yet again, be enough gasoline to go around, prices plummet.

    That’s been going on for many years now….

    But, please remember, that products LEAD crude…not the other way around.

  27. Whatever the reason, get used to it cause its not going to go down again, that is for sure! High priced gas is here to stay.

    http://www.complete-privacy.edu.tc

    1. I heard the sages (most anyone who could talk) quack the same mantra in the summer of 2008 when unleaded regular gas was $4.499/gal here in Sleepytown. Just a few weeks later reg. unleaded was $1.999/gal.
      NO ONE CAN PREDICT THE FUTURE!

      1. Damn, when we got up to 3.50 last time it didn’t go back down past 2.19

  28. How quaint…he actually believes that the price of gas is related to the price of crude…complete bullshit. Gas is entirely based on speculation…it certainly is not supply and demand. Oil refineries, pipelines and storage facilities in the US are full and have been full for a long time, but gas prices keep going up up up. It’s all speculation… Gas prices never go down when crude goes down…takes weeks, months for that to happen.

  29. I said ride a bike, mother fucker!

    *pulls out a gun*

    Save the earth or DIE!!!!

    Oh, I mean, please donate to the EPA!

  30. On March 29, was discovered site for the counting of Bulgarians abroad. SSL certificate is installed and your data will be protected. Only safe link is https://iniesme.bg

  31. If it’s just political posturing then get it *fixed!* Americans can afford these prices, and his green agenda would take years to implement. We need a short term solution.

    http://www.intellectualtakeout…..leum-daily

  32. The fact of the matter is that oil companies are staffed by idiots and miscreants whose only concern is lining their pockets at the expense of humanity’s health. If you ask me, they all deserve jail time unconditionally.

    Additionally, it’s pretty much been proven that free market principles are what drove America into each and every depression it’s been in. FDR fixed it once, and he’s not here now to do it again. Accept that John Maynard Keynes was right.

    1. Tony,
      it seems like you’re very apprehensive towards big business. Do you feel that people in general are corrupted by money and lose their sense of value and ethics?

      Since the government is assuming a role of business by trying to provide jobs, fill in for “market failures”, etc… wouldn’t it stand to reason that the human beings that have access to trillions of “public” dollars might dip in the till from time to time?

      Private or Public money, it’s still money…

      Who really deserves to be trusted?

      1. Are you sure you are replying to the real Tony?

Please to post comments

Comments are closed.