Why Is Gasoline Almost $4 a Gallon?

On January 20, 2009 when Barack Hussein Obama first took office gasoline cost $1.85 a gallon. Today it averages up to $4 a gallon and more. Why?

First, it has often been said that “the president of the United States cannot affect the price of gasoline”. And that held true for 150 years because our presidents had been pro-petroleum since that has been our basic fuel. Thus there seemed to be no way that they could influence its price beyond simply being pro-petroleum, and that is why gasoline and heating oil remained relatively inexpensive decade after decade.

Things are different today. Obama is our first openly anti-petroleum president and this is why gasoline is up to $4 a gallon. Obama is showing his anti-petroleum stripes by restricting oil exploration on federal lands and offshore; by opposing the development of the massive ANWR oilfield in Alaska; by opposing the “fracking” process which is producing vast amounts of new oil and natural gas; by refusing to approve the Keystone pipeline; and by favoring radical ‘green’ energy policies and political activists who insistently question and oppose the development of oil and natural gas.

These actions by Obama have indeed pushed up the cost of gasoline and heating oil substantially. Because the cost of crude oil, which obviously works its way into the price of refined gasoline and heating oil, is set artificially high today by the OPEC cartel based on two things: Supply and demand; and OPEC’s perception of the world market. And OPEC’s perception is that the United States is going to continue to consume large amounts of the world’s oil but that the American leader is seeking to thwart new oil production. This gives OPEC a rationale to keep crude oil prices artificially high.

Conditions are changing, however. The United States is beginning to produce huge amounts of new oil through the “fracking” process (see the eye-opening bloomberg.com excerpt at the end of this commentary) and this will prevent prices from going higher and eventually will bring prices down. This term “fracking” refers to “hydraulic fracturing” or the fracturing of underground shale rock formations using water and chemicals pumped into oil and natural gas well holes under pressure. This “fracturing” releases oil and natural gas from a wider area rather than simply drilling into it.

One Saudi Arabian oil official recently lamented that fracking worldwide is going to open up so many new oil supplies as to doom the OPEC monopoly. This is a good thing but American environmentalists want to end fracking too. By restricting the surging oil supply attained through fracking environmentalists want US carbon energy costs pushed up substantially for three reasons: To undermine the American economy like all socialists want to do; to force Americans to use less oil through high prices; and to make ‘green’ energy seem moderately priced compared to expensive oil. They also claim that fracking is bad for the environment although their claims have never been substantiated. They even have claimed that fracking causes earthquakes, which is baloney.

These eco-obstructionists have been exposed in various videos including several by the conservative filmmaker James O’Keefe under his Project Veritas. Two of the O’Keefe videos focus on the subject of “fracking”. One video shows three eco-activists in Hollywood – the actors Ed Begley Jr., Susan Sarandon and Mariel Hemingway – talking with a fake “Arab sheikh” about fracking. This “sheikh” is an actor used by filmmaker O’Keefe to expose these fraudsters.

The video shows the fake sheikh telling the Hollywood leftists up-front and without apology that he wants to stop fracking in America in order to stop American energy independence. These Hollywood elitists eagerly agree. This is utterly shocking but this is what we decent Americans are up against.

The “sheikh” then says that he comes from a family with significant oil interests in Saudi Arabia and that fracking will harm his interests. In the O’Keefe videos Hemingway, Sarandon, Begley and other Hollywood leftists then agree in one way or another that they would be ready, willing and able to take millions of dollars from the sheikh to produce an anti-fracking film.

Friends, these are the radical, wealthy “green energy” elitists who already are responsible for our long-term gasoline prices at up to $4 a gallon and more. They are classic socialists. They lead privileged lives and they don’t care about the rest of us. As a result of their activities people all over America are having their incomes stripped away by high gasoline and heating oil prices and are suffering economically. Today working people are paying an extra $500 or $1,000 or even more every single year for gasoline and heating oil. It is devastating but the Liberal Media are ignoring the story. Meanwhile those same media gave wall-to-wall coverage when gasoline prices spiked temporarily to $4 a gallon under Bush.

On the other hand domestic American natural gas is very inexpensive these days and is saving tens of millions of citizens tons of money on their heating costs. These prices are low since fracking has produced huge new gas supplies because the environmentalists have not been successful at stopping fracking everywhere, as they want to do. These low prices show what carbon-industry ingenuity like fracking will produce if we stop listening to the eco-alarmists and use our American resourcefulness.

Meanwhile here is amazing news as fracking is causing US oil production to soar. This big increase comes after environmentalists told us for decades that “the world is running out of oil and natural gas” and that “US oil and natural gas production has peaked”. This is false like virtually everything that environmentalists say. The world in fact is entering a new period of vast carbon energy abundance which is going to last for many centuries, perhaps for thousands of years. This is from bloomberg.com:

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock (fracking) spurs the nation’s economic recovery, Bank of America Corp. said.

U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The (US) became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.

Oil extraction is soaring at shale formations in Texas and North Dakota… The surge in supply combined with restrictions on exporting crude is curbing the price of West Texas Intermediate, America’s oil benchmark. The U.S., the world’s largest oil consumer, still imported an average of 7.5 million barrels a day of crude in April, according to the Department of Energy’s statistical arm.

U.S. oil output will surge to 13.1 million barrels a day in 2019 and plateau thereafter, according to the IEA, a Paris-based adviser to 29 nations. The country will lose its top-producer ranking at the start of the 2030s, the agency said in its World Energy Outlook in November. (end of bloomberg.com excerpt)

Notice that sentence… “The U.S., the world’s largest oil consumer, still imported an average of 7.5 million barrels a day of crude in April.” But 10 years ago we were importing 15 million barrels a day. This new number is obviously very good for the American economy. i.e., much less money is flowing out of America for oil. This is one of the significant reasons that the economy has not sunk into oblivion under Obama, yet Obama opposes fracking. Amazing.

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