Good Question: Could The President Lower Gas Prices?

By Jason DeRusha, WCCO-TV

MINNEAPOLIS (WCCO) — With gasoline prices pushing $4 a gallon in the Twin Cities, there’s enough blame to go around. Donald Trump said that a president should be able to get things under control, saying, “it would be very easy to get gasoline prices down.”

So, can the president really do anything to lower gas prices?

“In the short term, no,” said associate professor Elizabeth Wilson, an energy policy expert at the Humphrey School for Public Affairs at the University of Minnesota.

“Oil is an international commodity, fungible commodity, traded on international markets,” said Wilson, arguing that even though the U.S. uses one-fourth of the world’s oil, the government here doesn’t have a lot of control over things.

Some in Congress are urging the President to tap into the Strategic Oil Reserves. President George W. Bush did just that in 2005 and oil prices dropped 10 percent. However, that was after Hurricane Katrina.

“You could argue that the high prices, while painful, are not potentially strategic reasons to drain the reserves,” said Wilson.

The reserves have more than 700 million barrels of oil, which is an all-time high, but some experts don’t think that a tight supply is causing the higher prices.

Instead, the president could go after speculators. Many blame these traders for driving up the price of oil. There is a new Commodity Futures Trading Commission, which could take action to tighten rules on speculating.

Speculative energy contracts have increased 35 percent since the unrest in Egypt began in January; the CFTC could limit the number of contracts big players could purchase.

Wilson points out, however, that it’s unlikely that would have an immediate impact on prices at the pump.

She argues that we need to take more long-term steps, like reducing consumption.

That’s already happening. Americans are using 1.6 percent less gasoline since the prices started skyrocketing. In China, though, people are using 10.6 percent more. Consumption is also up in India and Brazil.

“It’s easy to get angry. It’s hard to make changes,” said Wilson.

More from Jason DeRusha
  • leaning lefty

    No the pres can do nothing. Wait, has done nothing. I will vote for the republicans next election!

    • Bill Martz

      Agreed! He ha not delivered on what he promised. Is he working for the GOP? We need a new party, but I will notsupport Obama again, although I will not support the GOP either. I’d rather not even vote anymore, as nothing EVER CHANGES!!!!!!!

    • Believer

      The president CAN do something…

      I was listening to Relevant Radio (Catholic talk radio) and a guest speaker put it nicely. Our leaders need to develop (or rather, have a team develop) a comprehensive energy plan! Without one, speculators will continue to drive the prices up.

    • Mike

      Leaning stupid-And when you vote for a Republican President with both houses controlled by Congress you will not only find the price of your gasoline at the pump costing you more, you will never retire with a social security check or any assurance that your health will be insured through Medicare of Medicaid.
      The Republicans care about two things, making a profit and making sure their donors are unregulated with no taxation and funding their next election.
      Wake up fool, before it’s too late.

      • MARK

        I think your tinfoil hat is on crooked.

      • Reasonable

        I’m sorry, did you not read the article where it said exactly the opposite of what you’re saying? It’s very interesting how you’re not letting facts sway your opinion. As long as Rush says it, it must be correct huh?

      • Mike

        Hairy-Take your head out of your derriere and turn off FOX news, the entertainment program.
        Check out those extremely powerful storms that are devastating the middle of our nation and tell us that climate change is a hoax and not affecting our weather.
        Next time you show show up to argue a point, try to have one…..

        • Hairy

          Mike, turn off Sesame Street.

          Global warming is causing the tornadoes? On March 20th, 1875, tornadoes killed 93 people in the southeast U.S. On April 18th, 1880, tornadoes killed 165 people in the Mississippi Valley. On April 14th, 1886, tornadoes killed 72 people in central MN. Who caused the global warming then? And who burned all the evil coal to cause enough global warming to end the ice age and melt the glaciers? I just lost my job because the business that I worked for had to close because of the poor economy. Surely you must be a liberal, so I would like to give you my address, so you can mail me some of your money. You know, spread the wealth around a bit, you liberal hipster!

          • Ignorance must be bliss

            Nobody is going to give you money, we all know you do not have a job. Is there a point you have or are you actually bragging about being unemployed?

          • Elmo

            Why turn off Sesame Street? It’s educational and has some really catchy music. I learn more from SS in a miniute than I do on FOX in a week.

          • Jim

            Just because you don’t understand climate change doesn’t mean it isn’t real. Weather does not equal climate.

            Science is hard. I get that.

          • Ricky Rubio

            Aight what is your address?

      • shirley

        Mike,,,,I agree with you. these people who say they’re going to vote republican,,,are they really looking at the whole picture with the republican’s? Personally i don’t like the fact that they are more concerned about the wealthy (who supposedly bring in jobs) the jobs they sent overseas.,I also don’t like the fact that they are taking away our rights,to negotiate for wages, safety regulation’s, respectable work ethics,,also down sizing our soc.sec., medicare, medicade, and programs that are their for the special needs of the poor & senior’s, also…. veteran’s benefit’s. The republican’s are very selective what information they give to us out here.The American people need to do their home work and look at the republican’s track record, they’re not saying they will raise tax’s,, regan didn’t either and he raised them every year he was in. HELLO !!!

        • Very concern

          Mike and Shirley have said it all. Who ever votes Republican better look at what they are saying. Look where it got Wisconsin and there governor. The Republicans only say what they want you to hear then turn around and rip you off.

          • Jim

            People are so quick to forget. Prices were even higher under Bush and the Republicans, over $4/gallon. After the fiasco that was Bush (and I’m not just talking gas prices here) I’ll never vote for a Republican again.

            • me

              Oddly enough, as soon as Bush said he’d allow more drilling, prices dropped because in the “future” there was going to be more oil available. So forget the moratorium on the gulf right now, I’m sure that has NOTHING to do with gas prices. When you libs are done whining about EVERYHTING and allow us to drill domestically prices will come down. But these are the same idiots who overreacted to 3 mile island so now we’re forced to rely on coal. Great job you’re doing! Viva libs!

              • Jim

                Yeah, more drilling might very slightly reduce prices by 2030. Great plan. Like I said, I have no problem with more drilling. But anyone who thinks there is a direct link from drilling today to lower gas prices next week doesn’t understand economics.

                And as I also said before, we do drill domestically, and at the same rate as we did when Bush was president.

                • somanysheepsolittletime

                  That’s the problem Jim. The liberals have been using that argument for over 40 years, so guess what, if they allowed more drilling 40 years ago – guess where we would be right now?

              • Look at all the stupidity!!!

                Do you have a clue what you are talking about? We do not use oil for our power plants as we do coal. So why do the 2 have anything to do with each other? Another idiot who is just spewing out hate and does not know what story they are reading. When was the last time you saw a power plant using gasoline to power a city? That’s right cause they DO NOT do that. Please read the story before you start yelling and b!tching about this as you just make yourself look stupid when you talk like that.

                • Jess

                  Gasoline is a product of oil. There are oil power plants, as well as coal. Please look it up before you start calling other people stupid.

      • Jaycee

        Mike, you are absolutely correct.

        The GOP (THE GRAND OIL PARTY) defend the wealthy corporations, while they disregard the struggling middle-class.

        What else is new.

    • steve wagnon

      i understand that many variables control the cost per barrel of oil,,what i dont understand is how the oil companies,can get away with raping the american public,,every little excuse for raising the price of gas at the pumps,,and they just make obscene amounts of profit,,i know any business is there for profit,,but this is price gouging at its worst,,should not be legal,,lower gas prices would nmake an immediate boost to the economy,,anyone know an attorney brave enough to file a class action suit on behalf of all americans??

  • Matt

    How about strengthening the value of the dollar!?! Any moron educated just the slightest bit in economics can see by having the dollar at historic lows will bring high prices of gas at the pump!

  • Dan

    Speculators and consumption??? This is article is bunch leftie propaganda. How about hostile energy regulations and the abyss of debt we’re in( weak dollar). They would never apply the same rational to other commodities like pork barrels and orange juice.

    • Mike

      The dollar is intentionally weak so that we can export any product out of country. If we raised the dollar our global comrades would wipe our ability to sell anything abroad.
      You need to lower your standards to third world wages and pay more taxes so the corporations will prosper and they can hire you for your life of servitude.

    • Jim

      An unregulated energy industry would be a nightmare for the country and the world. I don’t trust oil company execs any more than I trust Wall Street bankers. As for the debt, that’s a problem, but anyone who thinks it’s a “leftie” problem is blinded by partisanship.

    • Sunny Dayze

      Leftie propaganda? These are the exact same answers that were given when the gas prices were high under President Bush.

  • Tim

    “Oil is an international commodity, fungible commodity, traded on international markets,” said Wilson.

    All which is true however, you left out the part about where it’s traded on the value of the US Dollar. We have printed too much money which has weakened its value.

    Stop printing money.
    Raise interest rates.
    Drill for oil in USA as well as build new refineries. All which will create a lot of real jobs and revenue.

    • joey33

      You have my vote..!

    • Fed Up

      Well done. So the answer is, this president can’t do it but a good one can.

      • GWB telling ya

        re-elect me. I’ll bushwack you if that’s what you want. So will my daddy.
        or just let my arab friends do a tap dance on your car hood. and poop on your windshield. enjoy the day

    • Almost $5

      2006. Late summer
      GWB was your hero and in office
      I was paying $4.79 a gallon in Northfield for unleaded gas.
      And this was due to Obama huh? LMFAO

  • fkafka

    Presidents do have power – if they have courage. Nixon demanded wages freezes from the left and price freezes from the right and got his way. Nixon’s boy Ford “inherited” 14% inflation and tried to win election with cute phrases like “Whip Inflation Now” – WIN. Obama’s so deep in the campaign, he’just shouts – “Kadafi must go” and probably soon “Gas price rises must stop”. Wow

    • Bill

      Nixon also demanded a windfall profit tax on the oil companies. Strange how when the gas “shortages” (It’s not really a shortage when you can by all you want if you pay the inflated prices is it?) started pushing prices higher years ago. Anyone remember sub $2/gal gas? Each manufactured shortage only serves to acclimate the public to a new higher “normal” price for gas. Nixon also imposed the 55 mph national speed limit to reduce consumption, again no corresponding reduction is anticipated. Nixon did pretty well, at least in terms of his handling of the gas shortage.

  • Victim Du Jour

    Only way President Obama can control oil prices is to allow USA Oil Companies to produce our own oil from drills in North America.

    And You don’t see hippy environmentalists living like Amish farmers.

    The people I see complaining about offshore drilling and Alaska are using all the modern amenities, like we aren’t polluting the environment bombing Muslims.

    Bombing middle east countries is creating just as many nuke hazzards than a modern domestic nuke power plant.

    • Reasonable

      The Price Per Barrel (PPB) of oil is a global commodity. Global means more than the US. If we harvest say 50 Million barrels per day, who is to say that OPEC won’t decrease their production to match and keep the commodity price high? I remember gas being less than $1.50 per gallon about a dozen years ago. What was different then? The commodity value of PPB was “regulated” to be only a certain % of the actual value. Now that regulation has been removed (thank Newt and Bush Jr.) so that the commdity value is almost 75% and the actual cost to harvest the oil has little to do with the PPB of oil.

      The only thing that domestic drilling for oil will accomplish is ruining the environment and creating few if any meaningful jobs. Of course it will also grease the palms of local officials in getting permits…

      • Victim Du Jour

        Reagan and Bush Sr reduced oil consumption more than any Presidents in modern history.

        Bush Sr created the largest oil surplus in history. Than Clinton used it to fool stupid people into thinking it wasn’t SUV gas consumption creating the tax revenue for the budget surplus.

  • Richard in Minneapolis

    If Congress bans speculating in the US won’t the markets just move to London, Frankfurt or Tokyo?

    As long as there is more oil in demand than there is in supply the price will go up.

    As for the “strategic reservers”, that’s 700 million barrels. The US consumption is 20 million per day, e.g. a 35 day supply. Then what?

    As for ‘drilling for oil in the US’, it is not drilling for oil that increases the oil supply, it is FINDING oil at the end of the drill bit that increases the supply.

    • Hairy

      You are a F’n idiot. Do you know an ounce about economics? The price of oil is NOT a function of supply and demand. With no change in supply or demand, if all the gas stations agreed to raise the price of gas to $10 a gallon, would you continue to buy gas so you could drive your car to work, etc, or would you quit your job? You HAVE to drive, so you have to buy gas, at any price! The overall demand in the U.S. has decreased every year since 2006. We have oil in this country in the Bakken oil field and in Alaska, but Al Gore’s church of global warming wants high gas prices!

    • Harvey

      four deep water rigs have left the gulf for south america and africa, that cost us. delaying oil permits has cost us, not drilling in anwar cost us, not being able to convince opec to drill more cost us, pumping a trillion into the economy by the fed cost us, all of this plus the tens of thousands of oil related jobs cost us. And then for shots and giggles throw in the cost of everything related to the rise in gas which is anything transported, built, or stored and yes the president could have done something.

      • BigHeavyWood

        Supply and reserves today are HUGE.
        We sitting with rigs in the gulf that are sleeping. Refineries that have backed off.
        Don’t get how people can lay the blame on anyone or anything except purely and simply – GREED and nmassive profits for all. From The Arab world to the USA brokers.
        Hard to understand it’s actually fairly simple answer – the question is how to rein it all in.

    • Fed Up

      Your 2nd line , while true is not the case today. Supply exceeds demand at this point in time.

      • Mark from Plymouth

        Supply and reserves today are HUGE.
        We sitting with rigs in the gulf that are sleeping. Refineries that have backed off.

        Don’t get how people can lay the blame on anyone or anything except purely and simply – GREED and nmassive profits for all. From The Arab world to the USA brokers.
        Hard to understand it’s actually fairly simple answer – the question is how to rein it all in.

  • mike

    they could lower gas prices easily in a number of ways they just don’t want to. they are rich and these gas prices do not effect them at all so they don’t care and they would rather have gas prices high so that the oil companies have more money to bribe them with. all the president would have to do is create a plan to get the united states off of oil by 2050 and that way gas prices will either go down or we will stop using oil because it’s too expensive(also this would solve climate change) i’m an idiot and i can think of this in a second so anyone who says its difficult to lower gas prices or the president has no power to do anything is lying. or you can deal with the real source of this problem, the speculators. the rich people have so much money they have no idea what to do with it all so they are investing it in oil. and because they have too much money and they are investing it in the stock market it is driving the prices of everything insanely high so poor people can no longer afford anything that is required to be alive. thanks for the tax breaks for the wealthy democrats and republicans!

    • Hairy

      Mike, yes you are an idiot.

    • Grover

      In the end any thing they do to lower the price is temporary, any new drilling takes years. Any controlling of prices and the cries of socialism go up. If the speculators have driven the price of oil up then, like the housing market, it will go bust eventually.. But you are very correct in that t here needs to be plans for getting off oil. Also, you are one of the few who figured out the democrat/republican thing.

  • Steve

    Since Obama the one was elected the price of gas is up 102 percent. Thats the change we heard about

    • Super BigHeavyWoody

      Supply and reserves today are HUGE.
      We sitting with rigs in the gulf that are sleeping. Refineries that have backed off.

      Don’t get how people can lay the blame on anyone or anything except purely and simply – GREED and nmassive profits for all. From The Arab world to the USA brokers.
      Hard to understand it’s actually fairly simple answer – the question is how to rein it all in.

  • ronald

    Well actually he could but he is against it. all it would take is for him to say we will drill here and drill now. But all the nut job climate change people would rather see America go in the toilet. If CO2 was as bad as they would like us to believe I have a solution that would sequester all the CO2 you could ever want. However CO2 is a trace element in the atmosphere and does not need to be sequestered..

  • tuna-free dolphin

    It’s Obama monitary policy, Obama energy policy and even the Obama’s inept foriegn policy that drives speculators in a time of uncertainty. They might not plunge downward immediately but if those things were fixed prices absolutely would trend downward and speculators would not be nearly as attracted to oil. Instability in the Middle East is permanent. Any dunce could see that domestic oil production would lessen that factor. Well, any dunce except maybe the one in the White House, and the “expert” from the Humphrey Institute. Prices would be sooo much less likely to spike during the next crisis if our president wasn’t causing it.

  • Mark from Minnesota Tax Waste

    A Socialist President can do that but we have a…. wait a minute…

    • Ignorance must be bliss

      I would have loved to read all the posts on here if it would have been the old man and Palin in the White House. You idiots that say that Obama is a socialist and so on would have been just loving life life then huh? Remember this is the woman that had no idea what the Vice Pres even did. You idiots think that things would have been better? How is the view with your head that far up your ass?

    • JG is not a spin doctor

      Hey – the Villiage Idiot Mark woke up ;-)
      So your bs and way of chitting us says that your hero’s on that other aisle would have ensured this never happened eh! Nope – things likely would cost even more as they pamper the oil sector. Here and abroad.
      Go load up that crack pipe and come back when your even “brighter” Idiot

    • Jim

      Mark, you should look up the word “socialist” in the dictionary before spouting off on the internet where other people can read your thoughts. I’m embarrassed for you.

  • LBJ

    Whenever you see “Good Question” or “Reality Check” from this site, you know you’re either in for a liberal lecture, a major spin job designed to provide cover for, or lessen the political impact on a liberal for their policies, or they’re just greasing you up for the next assault on your wallet or freedoms. Whenever Obama starts getting hammered on an issue the “experts” come out to run interference for him and help him stop the bleeding. You can set your watch by it.

  • Fed Up

    Pump more oil or we relinquish our world police badge. Southwest Airlines negotiates a fixed price for this commodity and the US can’t?

    Focus on developing more energy source in the US while looking for more ways to conserve. This President cannot influence gas prices but a good one can.

  • successNOT

    Well i’ve made alot of mistakes in my life but you can’t blame me for any of this, I did not vote for Obama, although gas prices are not directly his fault he does play a role in them. I mean I can’t believe what a total waste his presidency has been, i consider myself lucky i can afford my house and bills. This country is turning into a s.hithole, im so glad i met a girl who didnt want children, because where are these kids going to work, how are they going to pay their bills, I’ve always stood proud over the U.S. but its quickly becoming an embarassment, i swore 10 years ago the iraq war was a horrible decision, and it was, it led us 2 believe we should go everywhere else also, these decisions have impacted our economy worse than anything else, those wars are why we keep printing money.

  • Lance

    The question “Could pres lower gas prices” is a few pay grades above most people posting and certainly above the authors. However, the question “Could the pres raise prices” is the more relevant question. The answer is yes of course and he has did just that. Obama has not hidden his distain for oil and coal and his administration has done everything they can to slow the growth and feasibility of oil production in this country. Oil production in this country is estimated to be down 20-25% next year. His inflationary economic policy has caused everything to cost more, His increased regulations has driven out big rigs from the gulf and alaska. This has cost us jobs, oil independence, and stability in the marketplace. Enjoy the windmills folks.

  • shirley

    vote republican if you like the fact they give the wealthy tax breaks, don’t say anything about raising tax’s, regan didn’t either ,and raised them after he got elected.

    • Hairy

      Shirley, I just lost my job because the business that I worked for had to close because of the poor economy. Surely you must be a liberal Shirley, so I would like to give you my address, so you can mail me some of your money. You know Shirley, spread the wealth around a bit!

    • Gotta love the Hope and Change now!!!

      Ok so what about your perfect Obama? Where are all the promises he made you libs? Gotta love that Hope and Change, huh? Oh wait that change is in the form of me paying for your new health care and every other lib out there.
      You all want a free hand out instead of actually earning it or if you do earn it then why don’t you give more then since that is what you all want for everyone, isn’t it spread the wealth. Well then spread it amongst yourselves and let us repub’s sit back and watch it all and laugh when you are complaining because you have to give so much.

  • terri

    its easy to point fingers at everyone else and say its their fault, and everyone seems to have a solution. It all comes down to one word that controls the whole issue – GREED!! Everyone wants something and nobody wants to give anything.

  • Sgt

    I thought gas was going to be .99 cents a gallon when the Current President was elected?

    • Jim

      That was a stupid thought.

  • KracktUp

    You folks make me laugh and gag mostly.

    To the Reps – you fricken scream for the government to never ever interfere in the “free market process. Now you suddenly flippin’ on this
    To the Lib’s – you continue to want the government to manadate on everything.

    In this case I am on board (choke) with the Libs – time for the government to take control of the energy sector. It cannot get any worse and tossing $100B plus in profits back into the US economy makes sense.

  • Hey Libs you are forgeting to blame Bush!!!

    Must all be Bush’s fault!!!!!!!!!!! Gotta love the fact that most say it is because the repub’s are oil rich greedy people (at least that’s what the libs were crying about a few years back) yet gas is just as high and they are still blaming the repub’s. So I say again must be Bush’s fault….

    • Jim

      No, actually gas is quite a bit cheaper than it was when Bush was president. But I don’t believe that presidents have control over gas prices in the short term, not even terrible presidents like George Bush.

      • successNOT

        Jim you sound like another rearend who thinks Obama is doing a fine job, I dislike Bush only for that fact he started this useless war in Iraq that led us 2 other wars, also resulting in a weaker dollar

        • Jim

          I also dislike Bush for that reason and others. As for Obama, I don’t think he’s doing a very good job at all. I just think it’s silly to blame the current president (or any past president) for high prices at the pump when it’s so easily demonstrable that this president doesn’t have any more control than the last one or the one before him.

          FYI, “rearend” isn’t a word in English.

          • hairy

            Just like FYI isn’t a word either. However, I think you know what the person meant!

            • Jim

              Thanks, “hairy.” Yeah, I know he meant to insult me because he disagrees with me. Thanks for the help.

      • captainobvious

        Gas is quite a bit cheaper? its $4 a gallon im 36 its never been $4 a agallon in minnesota until now, its the highest its ever been, good comment tho lol

        • Jim

          In June 2008 the average gas price in the United States was $4.12 per gallon. You know, it’s really easy to look for information on the internet. You should try it sometime.

          • captainobvious

            Jim I buy gas in minnesota, ok gas never hit $4 here ever, until 1 day last week i saw a $4.01, u have to realize that the coasts have a tendency to skew averages, so your comment that says gas is considerable lower is comical, last time we tapped the reserves, which are currently higher than they’ve ever been it did help a little so yes obama could try that. What does he have to lose

            • Jim

              I also buy gas in Minnesota, and it doesn’t make sense to me that gas prices would be higher here now than they were in 2008 when the national average was higher. I dont’ believe it. And since I know the president doesn’t have control over national prices, I also know he has no control over prices in Minnesota.

              I think the thought of tapping our strategic oil reserves to temporarily lower the price of gas at the pump is insane and just about the worst thing we could do. Those are “strategic” reserves for our military or for some unforeseen calamity. I don’t support seriously weakening the security of the United States so you can save a few bucks driving to the mall this weekend.

              • Hairy

                Jim, you are an F’n idiot! You mention an “unforseen calamity”. Like what?
                The Canadians attacking us? Or maybe the Mexicans? Oh wait. The Mexicans already ARE invading our country and nobody does a thing about it. F’n liberals!

                • Jim

                  Yeah, we should probably just disband the military and get rid of any disaster preparedness we have in place. Think of all the money we could save, and what could go wrong? You’re right, Canada is no threat. Let’s do it! LOL

          • hairy

            Quite a bit cheaper Jim, you are a F’n IDIOT!

            I just lost my job because the business that I worked for had to close because of the poor economy. Surely you must be a liberal, so I would like to give you my address, so you can mail me some of your money. You know, spread the wealth around a bit!

            • Jim

              I’m sorry to hear about your job, but I don’t think you can blame your personal problems on the president any more than you can blame gas prices. But I guess a member of the party of “personal responsibility” needs a scapegoat, right? The government should stay out of your business until you lose your job, and then it’s the government’s fault. I get it.

              • Hairy

                Where in the world did I say its the governments fault???

                All I said, Jim, is that now I want some of YOUR money!

                You know, the party of love and compassion that wants to, you know,

                spread the wealth around a bit. So, Mr. Liberal, do you want my address

                to send your money to?

                • Jim

                  Ah, I can see that you’re a proud follower or your party’s doctrine of personal responsibility and pulling yourself up by your bootstraps. You get fired and instantly turn to the internet to complain about liberals.

                  This article is not about welfare, it’s about energy and gas prices. You should beg for money elsewhere.

                • Hey Libs are you forgeting to blame Bush!!!!!!!!

                  Ah typical liberal, wants everyone else to spread the wealth but ask them for some and boy they sure do dodge the question don’t they? Not only that Jim I don’t see a whole lot of difference between 4.12 and 3.95, unless you are counting those .17 cents so that must be the part that is STILL BUSH’S FAULT!!!!!!!!!!!! I know let’s put all the liberals on one side of the US then they can share their wealth to each other and when they try to cross the line to the side that allows us to keep our hard earned money we will zap them with an IDIOT ZAPPER

                • Ricky Rubio

                  Im rich dude, I will send you some of mine. What is your address?

  • Richard in Minneapolis

    The United States produces 4% of the world’s petroleum. Show me any market where a relatively small player can control the world’s price for that commodity.

    As for those saying that the problem would go away if the President would push for more drilling…. what makes you think that that oil won’t go onto the world market at the prices established by the market?

    Any sudden increase in oil production could be easily offset by a reduction by other producers if it is their interest to keep the price high. The fact that we produce only 4% of the world’s oil, while consuming 26% means we have a lot more market leverage if we focus on reducing our demand than trying to increase production.

    • captainobvious

      We only produce 4% by choice, do you not understand that, that is the point, listen i drive 4miles a day to work. it doesnt effect me that much, but gas prices have as much to do with a poor economy than other things do, people spend so much on it they cant spend money anywhere else.

      • Jim

        The United States produces the same amount of oil now that it did in the 8 years under Bush. So what’s your point again? People act like Obama has somehow reduced our oil production or attacked the oil companies, when in fact NOTHING has changed from the Bush years and we’re still subsidizing oil companies with billions of dollars in taxpayer dollars every year. Meet the new boss, same as the old boss. But if it makes you feel better to blame the president or Democrats in general, have at it I guess. Some things never change.

        • captainobvious

          Please stand on a stool so this doesn’t go over your head. The point is we are capable of producing more oil, so since we as a nation are on the brink of financial collapse, perhaps we should gamble and try producing more oil, are you saying that we are producing as much as we can?

          • Jim

            The nation doesn’t produce oil, private companies do. And then those private companies sell that oil all over the world. Drilling for more oil in this country would, years from now, slightly increase the world’s supply of oil, which would slightly reduce the price. I agree with that and have nothing against drilling for oil. But if you really think that drilling for more oil is going to bring us back from the “brink of financial collapse” and solve our current problems, then you’re destined to be unhappy with the results.

            • What about Bush it has to be his fault!!!!

              Jim, I think you are missing the point. Oil prices are set pretty much by speculators; therefore if OBAMMMA came out today and said we have contracts to allow oil drilling in Alaska and overturn the EPA then I can almost guarantee you that oil process would begin to drop a lot more than slightly. Speculators speculate how much oil will be available in the FUTURE and that then determines the oil prices.
              SO if you give those speculators a reason to say “you know what, oil will be in abundance in a few years” then oil prices will drop a lot more than slightly. I can tell you from personal experience that it doesn’t take years to actually drill for the oil, the reason it takes years to get the oil out of the ground is because of the liberal EPA and getting the permits to allow them to drill. Once they start drilling it doesn’t take too long before oil is reached. ND oil rig can be stood up, start drilling, and hit oil within 19 days.

              • Jim

                I know that Republicans hate the EPA, but I’d rather not allow the energy industry to tear up the country at their own discretion. Oil prices are so high because of surging demand around the world along with stagnant supply, and while I’m not against drilling, the ultimate answer is not more oil but rather sustainable energies. If you think oil prices are high now, just wait until the world starts to run out and there are a billion drivers in China alone.

                • Ricky Rubio

                  Finnaly some one says it, sort of, peak oil, we are starting to run out and they know it. Sorry things are only going to get rougher

        • Metal DJ

          Look at Obama’s energy policies, and you will see why the price of oil is so high.

    • Hairy

      Hey liberal, I just lost my job because the business that I worked for had to close because of the poor economy. Surely you must be a liberal, so I would like to give you my address, so you can mail me some of your money. You know, spread the wealth around a bit!

      • Ignorance must be bliss

        Give it a rest, we all know by the 5 posts that you have lost your job. The funny part is that taking the Republican stand that you are, and most of the posts from GOPers is that you must be lazy that you do not have a job. Maybe you would like to blame this on Mexicans as well as the Pres huh?
        The other funny point is that the group of people that are calling our Pres a socialist are now the same people saying that he should control the price of something in a free market system. Nobody can see the irony in the statements made here? You cannot see that you are being hypocritical about this and asking him to be socialist by doing this? Thank you one and all for justifying my screen name!

        • You'requiteblissfulThen

          You’re referring oil as a free market system, altho technicaly that couldn’t be farther from the truth. When your referring to a free market system that is lining politicans pockets to prevent anything from happening it sort of takes that free market thing away. I hope you have children because their life will be horrible down the road, as energy issues are just another example of the US demise what a shameful place this has become, and i have a job and can afford my house but am glad i don’t have children, where will all these people work 10 20 30 years from now, we as a nation financialy peaked about 5-10 years ago, and the sad thing is it was all on the housing bubble, those days are and so is the american dream..

        • Ricky Rubio

          Lol, Like I said hairy i got some $$$ give me your adress and I will send you some

  • Metal DJ

    You are ALL missing the mark on this. It is the energy polices that Obama has, and is putting in place that is causing speculators to increase the price of oil. Like his policy of no drilling in the Gulf for example. The speculators can see the writing on the wall down the road with what Obama is trying to do and are adjusting accordingly to his energy policies.

    Obama’s ultimate goal is to drive up the price of oil so high that it forces us all into Electric Cars, and Mass Transit Trains, and Busses.

    • Jim

      You’re confused. There is the same amount of oil being drilled in the Gulf right this minute as there was when George Bush was president. Except for that rig that blew up and killed a bunch of people, I guess. If you look at the facts instead of the partisan propaganda, you’ll soon realize that the energy policies of this president are no different than those of his predecessor.

  • red

    Obama had doe s— since has been in office

    • MARK


  • DAN

    Suspend the Fed. gas tax and the price would instantly drop around 20 cents

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