Gas Irony

January 1st, 2009 — Average U.S. cost of gasoline: $1.63

February 26th, 2012 — Average U.S. cost of gasoline: $3.67

THE PETROL EQUATION

The steep increase in gasoline prices affects the costs of nearly all goods sold within the United States. How? Their successful dissemination to retailers or direct drop ship is dependent on intermediary distributors who are dependent upon reasonably priced fossil fuels. Increases in costs of goods sold (COGS), which includes fuel, are normally passed on to the consumer by increasing retail prices.

In addition to passing along energy price hikes, it should also be noted that the United States imports about 58% of our daily oil consumption.  The Obama administration’s energy plan offsets future increases in U.S. demand by increasing foreign oil imports.The downside to this practice are many including greater price fluctuations through manipulation of foreign supplies, bolstering foreign economic GDP’s, and creating foreign jobs. The only upside to this practice is the preservation of U.S. oil supplies.

FALSE PETROL IDOL

When energy prices increase, American citizens living in poverty are affected more than any other demographic. What astounds us logical pragmatics is Obama supporters claim to be compassionate, caring, loving individuals who seek to “raise everyone up” through the policies and ideology of Obama. If that’s the case, why would the leader of hope and change ever implement an energy policy that disproportionately hurts the impoverished while boosting the balance sheets of the wealthy?

THE OBAMA CONUNDRUM

Does Obama care more about the donors that allowed him to become President of the United States or those that are in most need within our society? To answer this perplexing question, all one has to do is follow the money trail.

3 Responses So Far... Leave a Reply:

  1. Joe says:

    Talk about irony – what exactly was the administration policy that has raised the price of gas? you do realize that gasoline is a GLOBAL commodity, right? I suppose you think the fix for gas prices is to increase U.S. oil production? Do you also realize that all previous attempts to raise oil production in the U.S. has had an INVERSE affect on gas prices (meaning that they went up during that time).
    You seem to be in need of “factual” argument, instead of introducing a political agenda on a topic that has nothing to do with politics.

    • Matt says:

      How about we first pull back the reigns of the EPA whom are strangling America’s ability to develop the resources we have in the United States. Secondly, why is the Obama administration allowing foreign entities in South America to develop domestic resources in the Gulf of Mexico?
      I do realize gas is a global commodity since much of the sweet crude is derived from other sources outside of the U.S. The point of this article is to point at the irony that the Obama Administration is doing little, and putting up more barricades, to help relieve the ever increasing price of gasoline in the U.S.

    • Matt says:

      Joe,
      This administration has used the EPA as a vehicle to halt domestic exploration of oil and hand it off to other nation states. Brazil and Venezuela come to mind when thinking foreign exploration permitting.
      Global commodity: Yes, I realize that OIL not GASOLINE is a global commodity. Unfortunately, the U.S. failed to expand domestic production since the OPEC crisis in the ’70’s. Lets not forget that the Department of Energy main thrust for inception was out of the oil crisis in the ’70’s.
      If one must point the finger, blame the EPA and its stranglehold on domestic exploration by American petroleum corporations. That department has caused more chaos in the energy markets period!

      I want to see the U.S. freed of reliance on oil imports, and ultimately, play a smaller role in our daily energy usage. If we, the people, demanded that 1) the next four years we ramp up exploration/production vis-a-vis reduction in regulations and private firms reinvesting in American refineries and 2) real incentives via tax credits to those companies exploring/implementing alternative forms of energy, we’d be on the right track to reducing gasoline prices while furthering along stability in the U.S. markets.

      The energy industry will continue to expand well into the 21st century even though over regulation combined with a growing population further exasperate a supply issue. The U.S. must be at the forefront of this problem through limited regulation and a serious, capitalistic, incentive for the private sector to expand our energy production at home.

      Private enterprise makes energy, not Government.