05-12-2011, 08:31 AM
Gas Prices Are High Because the Liberals Want It t
| Gas Prices Are High Because the Liberals Want It that Way |
Numerous pronouncements in the past from the president and leading Democrats show that high fuel prices aren't a bug, they're a feature.
High gasoline prices are not a cause of the current economic recession, they are an avoidable and unnecessary symptom of liberal environmental and economic policies. When President Barack Obama took office the price of gasoline was $1.83 per gallon. Today it’s over $4.00. Understanding why that is so will give you insight into the patient game plan of the fossil-fuel-hating, combustion-engine-despising, environmentally obsessed left.
The high price of gas is not simply a function of the cost of crude oil. There are many causes for the $4.00 we are currently paying for a gallon of gasoline. Of that $4.00, taxes account for 52 cents, distribution and marketing about 32 cents, refining 56 cents, and the cost of crude oil $2.60. By the mid-20th century, oil was surpassed only by income taxes as the largest generator of revenue for the U.S. government.
Clearly, the biggest portion of the $4.00 you pay goes to the crude oil suppliers. This is where supply and demand takes over. The price of crude oil is determined by the world’s oil-exporting nations, particularly the Organization of Petroleum Exporting Countries (OPEC). OPEC is responsible for over 40% of the world’s crude production. In 2001, when OPEC reduced its production by 1 million barrels a day, gas prices in the U.S. skyrocketed to $1.71 per gallon. When it increased its production in 2005, gas prices dropped.
The United States is actually the third-largest producer of crude oil in the world, but we still import nearly 40% of our crude oil demand, mainly from Canada, Mexico, Saudi Arabia, Nigeria, and Venezuela. But here is where life becomes quite simple. The more crude oil we produce domestically, the less taxes we heap on a gallon of gasoline, the fewer hurdles and blends we require of domestic manufacturers, the less we pay for gasoline. U.S. domestic oil production peaked way back in 1970, and by 2005, imports were twice that of domestically produced crude oil.
President Obama’s solution to the crisis is to launch investigations and task forces, rather than increasing production. Last month Obama announced that the Justice Department will try to “root out” fraud and waste in the oil markets, yet it was Obama himself who was quoted just a few weeks ago saying, “Politicians are often eager to feed the impression that solving the problem is just a matter of eliminating waste and abuse — you’ll hear that phrase a lot.” At a gas price town hall meeting Obama told a father of ten to cram his family into a hybrid and told us all that inflating our tires and getting a “tune-up” would beat high gas prices.
Last edited by EmptyTimCup; 05-12-2011 at 08:44 AM.
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