We all have heard the rhetoric about the price of gas….it is Obama’s fault…..we need to drill more…..American oil will bring the prices down…sorry, sports fans but NONE of that is true! At best it is just electioneering bumper stickers….but the American people are always falling for bullsh*t and why would this be any different, if anything it will get more traction because it effects most Americans daily…….
Let’s look at a few facts…….by 2006, the US was the 3rd leading oil producer in the world…..we are drilling so much that we have become an oil exporter for the first time since 1949 and oil production is up 10% since Obama is been the president….and NONE of that has brought the cost of gas down…..and now they want me to believe that more drilling will do that which it has not done in at least 5 years…..sorry asshats… I am NOT that gullible!
Gasomics 101: Drilling does not affect gas prices at the pump despite rhetoric
Impact of the price of crude oil
Impact of gas taxes and taxes on oil companies
The federal excise tax on gasoline is 18.4 cents a gallon—the same as under George Bush. States add taxes ranging from a low of 8 cents a gallon in Alaska to 31.9 cents a gallon in New York. Gas taxes do not move with the price of oil or the price of gas.
Oil companies and their apologists blame taxes for high prices. Truth is, oil companies have so many write offs and subsidies, they actually pay almost no federal tax.
Impact of refineries
A very large portion of the cost difference between crude oil, and price of gas is the cost of refining it. Previous increases were the result of a reduction in refining capacity. Hurricane Katrina damaged oil refineries in the gulf reducing capacity. Fires at refineries also cut capacity. None of that is occurring now. Gas supplies are normal.Are the President’s policies to blame for current gas prices?The actual answer is that gasoline prices are not really affected by any policy of the Obama administration. Domestic production is increasing, not decreasing.After a short moratorium on drilling in the Gulf after the BP disaster, permits for new deep water oil wells are being issued. The recent Exxon discovery was from a well permitted after the BP moratorium was lifted. The President announced a week ago new policies to speed up domestic oil production even more.It is an election year, and Americans are hurting from high gas prices. It creates a convenient opportunity to blame the public’s misery on the President to win votes. The facts do not support this rhetoric, but in political speeches, facts seldom come into play. Production declined under every Republican President and Republican Congress since Nixon.