Causes and Implications of Rising Gas Prices
http://thedianerehmshow.org/shows/2012-02-28/causes-and-implications-rising-gas-prices
The average price of a gallon of gas nationwide stands at $3.72, rising by 19 cents in the past two weeks, and up now for 21 days in a row. Gas prices have never been this high in February. One big reason: tension around Iran is driving up the price of oil. Forecasters say U.S. gas prices could reach four dollars a gallon by July. President Obama could tap the Strategic Petroleum Reserve to bring prices down a bit but his Republican opponents want more domestic drilling. Guest host Tom Gjelten and a panel of experts discuss the economic and political impact of rising gas prices and what it means for consumers.
Guests
Dean Baker
co-director of the Center for Economic and Policy Research and author of, "The End of Loser Liberalism: Making Markets Progressive." Blog is called "Beat the Press"
Coral Davenport
energy and environment correspondent, National Journal.
J. Robinson West
chairman of PFC Energy, an energy consulting firm
John Ydstie
economics correspondent, NPR
Comments
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The guest said,we`re not exporting oil from Texas. OKAY,so what ? You are going to refine the oil and export the gas and diesel from that oil. Sounds like a Fox News report.
You are referring to the WTI crude oil price, which is largely irrelevant in regard to global oil markets. Excluding WTI, which only applies to about 7% or so of global crude oil production, global crude oil prices currently range from about $120 to $135.
We can power vehicles with water. Check it out on Youtube.
TWO SOLUTIONS TO HIGHER GAS PRICES:
1) Remove oil from the futures exchange.
2) Have everyone make the following phone call to their employer tomorrow morning:
"Gosh. I'm so sorry, but I cannot come to work today because I can't afford the price of gas."
Now to all who know that getting 6 people to your home for dinner on the same night is often impossible, the above is a pipe dream (every pun intended!) But wouldn't it be nice........!!!
Seeing that in general, Americans can't afford to drive as much as they used to, demand is down, so oil companies have to get more creative to continue to obtain record- breaking profits.
Because Oil companies have not had the foresight to build any new refineries in America (?) we all pay higher prices?
Wouldn't it be more accurate to say oil companies, not being stupid, realize profit margins increase by not bothering to update refineries?
Prez election years, especially when incumbent is Dem, also always coincide with rising gas prices. No one should be surprised gas is currently on it's way up.
I'm wondering if you guests can address why the US continues to shy away from the use of methanol and a source of fuel, in favor of ethanol? Methanol is abundant in the US, being derived from natural gas, which has historically low prices.
Phil Corey
I have two issues, 1 we have made it so hard for auto makers to reach higher fuel ecconomy with emissions. A Honda CRX with a carborator got 52 mpg. Today's hybrid vehicles with fuel injection can barely reach those numbers. Desel trucks getting 22 mpg now only get 10-12. And the second issue I have is with electric vehicles is they are simple to build we are told technology is not their that's a lie. There is one moving part in a electric motor not 300 like a gasoline engine. The price of electric cars is artificially high due to government encentives and the "tech" lie that they are expensive to build. Also gasoline company's are buying battery makers and limiting production. It's about money and control. Ken Coventry grand blanc MI
Dean Baker "oil companies dont get subsidies"? say what??
Dean Baker "scaleable energy sources"
PV is equivalent with nukes and is very scalable
EV's cost 1/4 what fossile fuel ones cost to run
Gas price in The Netherlands: $9.13 a gallon. Each time it increases, everyone thinks their whole life is going to change. 5 years later they're used to it, get more fuel efficient cars, and the economy is doing great. In the US we're used to gas being cheaper than water and when it ticks up it hurts us just as much, emotionally. But we'll be used to it within 5 years, and the economy will be just fine.
These people that think we can just stop using petroleum have not done any research on what they are saying. Just about EVERYTHING that we use has petroleum in it in some form. Plastics, rubber, carpet, clothing and so many other products that we use today are made from petroleum and in order to get off of petroleum we would need to revamp how these products are made. That is a big job and there isn't enough intestinal fortitude to push these changes through at this time.
"Americans for Gas Rationing" is a group of patriotic Americans who see the gas crisis as a national security problem that can be solved in part by gas rationing. Rationing will lower the cost of gas by eliminating unnecessary usage and reducing demand. It is a fair method for all Americans, especially for those who cannot afford the endlessly escalating prices. The benefits of gas rationing will be felt in all areas of American life and restore the potential for the American Dream to all our citizens. You can support this effort by spreading the news to your friends and neighbors as well as by demanding action from your representatives in Congress.
Tell that to your representative, or vote for one that will listen to you.
Lousy segment! Guests Dean Baker and Coral Davenport are clearly connected to the oil companies or their parent corporations. The show needs to get better guests to provide a better, more rounded view of the topic. Dean paints the oil companies as heroic, and Coral describes the electric car movement as taking a very long time to implement. Perhaps giving us some insight, the film "Who Killed the Electric Car" came to several conclusions:
1. People loved their electric cars and did not want to give them up.
2. GM took all electric cars back, some by force, when the leases were up, and destroyed them.
3. The car companies and oil companies lobbied California politicians to end all electric car support, including Los Angeles' (1980's) pledge to switch 1,000 city vehicles to electric.
Its lousy that Corporate America has so much influence on state government and NPR segments.
roland wrote:
"Each time (gas) increases, everyone thinks their whole life is going to change. 5 years later they're used to it, get more fuel efficient cars, and the economy is doing great. In the US we're used to gas being cheaper than water and when it ticks up it hurts us just as much, emotionally. But we'll be used to it within 5 years, and the economy will be just fine."
Average wages have stagnated since 70's. Unless you're all about the wealthy and prefer the rest "eat cake", it 's difficult to see how gas prices increasing couple thousand % (since then) is not affecting these folks way of life.
Drew Kelly: Would you waste money building more refineries if oil were running out? They knew (oil corporations) what they were doing.
I don't quite understand the reason for running the Keystone from Canada to Houston. It's my understanding that refineries in Houston are putting out all they can manage right now. Why not build refineries on the west coast or on the Great Lakes. and shorten the pipeline? Increasing output beyond what we are capable of now and helping to update our aging refineries, lower prices, and develop jobs in areas where they are needed. Both Cleveland and Detroit come to mind. Plenty of workers, ease of transport, short pipeline.
Peak Oil anyone? Why don't I EVER hear about this in the news. Oil sands are not oil. Oil under a mile of ocean and a mile of ocen floor is not the solution to this problem. Ride a bike. Our binge is coming to an end.
All points taken, Isnt the bottom line for whether there is justification of fuel cost increses summed up by looking at the swelling of profits by the Oil Companies ??
jbee: EXPORT- The tar crude (Liquified & Purified) comes out in Texas for shipping to refineries overseas with low or no regulation, after the slag, dregs , emissions and effluent from initial processes are dumped in western Canada.
There are certainly no industry plans for new cleaner refineries or longterm living waged jobs in the Midwest, Gulf Coast or anywhere else in the USA connected with tar sands oil. We may though need some cleanup experts, public relations flaks and lawyers if the soot pipe is built. It will surely rupture and spill before very long.
I thought since this article, http://pressthink.org/index.html, that NPR was committed to the truth. But, I see it is not so, the gentleman who stated that fracking was safe was telling a fallacy. Fracking is harmful to our environment, destroying water supplies and etc. Yet, he is allowed to broadcast this shrill on air. I live in Arkansas, I am seeing the direct causes of fracking in my beautiful state. NPR, please stop allowing these people to have a platform. Tell us the truth, and the people will donate.
Thank you
I was so extremely dissapointed with the guests on this particular episode and their "sidestepping" of the causes for high gasoline prices that I had to turn it off. This is something I have never had to do before. All the guests were either on "big oil's" payroll or had their "rosy colored Obama glasses" on! The upwardly trending gasoline prices demonstrate that there is no "supply and demand" economics going on, i.e. demand is down, yet the price goes up! Speculators are driving the price up and no one, either in big oil or our Government, has an invested interest in seeing it checked. The final straw for me was when a caller asked about the dramatic gasoline price drop when Bush said he would open Federal areas for exploration and drilling. One of your commentators suggested it was a "coincidence" that prices fell! And if I were to believe that I would need a lobotomy. This show was a waste of my time, a first for me, after having listened to this show for many years. YOU CAN DO MUCH BETTER!
It is amazing how completely clueless and irresponsible the Left is about this issue. No matter what, there is always an excuse. Gasoline taxes, drilling and pipeline restrictions, cap-and-trade - none of that counts, and so the President just "can't do a thing" to stop gas prices from going up (and thereby killing off the recovery). Nosiree, there was no correlation between rising living costs and the housing/credit crisis. Does anyone really believe what these people are saying ? If we're exporting oil and coal because of expanded world demand, exactly how does restricting domestic energy production and emphasizing less efficient energy sources help the American consumer and the American economy ? Most WAMU listeners live in the greater Washington DC area, with the worst traffic conditions in the US, plus some of the worst commute distances and high housing prices. On top of that, you have the governor of Maryland tacking on a huge gasoline tax, as if that will do anything to help the problem. Every tried using public transportation in Howard County, Maryland ? How about Spotsylvania County, Virginia. We don't even have a viable subway system, and these idiots are talking about the benefits of wind turbines ? What utter nonsense.
Interesting show. One theme that was particularly interesting: recognition that the President has little ability to influence fuel prices. I can see how the current focus of GOP candidates on fuel prices is a way to keep talking about problems with the economy at a time when the numbers are turning in Mr. Obama's favor. Maybe the reason Mr. Gingrich is so sure he can reduce the price of gas by $1.00 per gallon is because the previous Republican president did manage to change the price of gas by about that much...in the opposite direction. And here we are!
If it hasn't been said already I would like to point out that a rise in gas prices is nothing like a tax, as was said on this show. A rise in gas prices that is caused by anything other than a tax only goes to the gas and or oil company (not elected by the people). A tax on the other hand will be collected by the government (which in a democracy is elected by the populace) to be used hopefully for the public good (if not we can theoretically vote them out).
I'm with organicgrower. I just heard the other day Trilby Lunberg (sp?) the energy expert say in a sound bite, "Demand is low, supply is high, there's lots of excess refining capacity, and yet gasoline prices are high." I would like someone to investigate whether Big Oil and/or its speculator allies are driving up prices to punish the President and help Republicans. This is the only issue that has given Republicans any positive traction in quite a while, and there's no doubt which party the energy special interests like better (the GOP).
I would at least like a comprehensible explanation of these prices if they are not being manipulated.
I'm with organicgrower. I just heard the other day Trilby Lunberg (sp?) the energy expert say in a sound bite, "Demand is low, supply is high, there's lots of excess refining capacity, and yet gasoline prices are high." I would like someone to investigate whether Big Oil and/or its speculator allies are driving up prices to punish the President and help Republicans. This is the only issue that has given Republicans any positive traction in quite a while, and there's no doubt which party the energy special interests like better (the GOP).
I would at least like a comprehensible explanation of these prices if they are not being manipulated.