Fuel Prices are Falling – It’s NOT Obama’s Fault!

Chip Wilder writing at Jeff Pelline’s Blob, on November 10, 2014 at 10:35 am

The right wing were quick to blame Obama for High gas prices, who do they thank when it’s low?

Why would we thank Obama for the low gas prices, since he did not have any thing to do with the prices coming down? That is unless he was responsible for helping the EU economy slow down and come to the brink of another recession, reducing demand for oil.

Obama’s EPA and DOE have done everything possible to prevent oil and gas drilling on federal property. The Americas current oil has come from private and state lands, free from Obama’s tampering.

The price of oil is based on the supply in the market. American companies are using fracking technology to produce a surplus of oil in the market, forcing the Arab nations to lower their prices. Obama has nothing to do with that — nothing!

The drop in fuel prices will help cushion the jump in prices, forced by CARB’s Cap and Trade scam, 1 Jan 2015, which is less than 60 days away.

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About Russ Steele

Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.
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5 Responses to Fuel Prices are Falling – It’s NOT Obama’s Fault!

  1. Jonathan says:

    Wouldn’t the danger posed by gyrating oil prices in the middle east argue for an accelerated national effort toward renewables. It would in any rationale analysis.

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    • Russ Steele says:

      Jonathan,

      Please proved your rational analysis. Now can renewables be competitive. The largest solar plant in California cannot even earn enough money pay its bills. Over 75% of them the plant is running on fossil fuels. The sun does not sign enough. Would very much like see your analysis.

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  2. Dena says:

    While demand has dropped, there is another factor and that is we are having a gas war on an international scale. The Arabs aren’t dummies and they have seen the progress that fracking has made in the U.S. and they want to continue getting $100 a barrel or better. They have dropped their price because they know that fracking requires $80 a barrel or better to be above the break even point. They figure if the prices are low enough they will shut down the fracking and then they can push the price back up to $100 a barrel. The question is can OPEC hold out long enough to shut down our oil production or will their cash reserves drop so low they have to give up on the war before they win it. Both OPEC and Russia need $100 a barrel because their commitments to the population of their country require that much income to keep their economy running. There is the danger that this could become much more dangerous than just a price war. It could result in a real war or a revolution. A very dangerous outcome for a game of chicken.

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    • Russ Steele says:

      Dena,

      Very insight full comment. I thought the fracking break even post was closer to $60.00? Can you share your source for the $80.00? It could be that some formations are harder to frack than others, thus the higher break even point. The Russian budget was based on $100 oil, and it does not look like it will return to that level an time soon, not until the EU economy recovers and China and India economies take off as well.

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      • Dena says:

        It may very well be $60 and $20 could be the profit to make the whole effort worth while. There is little reason to risk that much money unless there is a profit in there somewhere. People complain that the oil company profits are to large but the oil companies only make cents on a gallon of gas. The profit comes from lubrication products and the huge volume of products they process.

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