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GAS: Oil companies backed down

Letter by Robert Brown, Fircrest on June 29, 2012 at 2:17 pm with 26 Comments »
June 29, 2012 2:17 pm

Sometime in March, I wrote a letter suggesting that oil companies were responsible for the high gas prices. I predicted, and it turned out to be true, that they would end the quarter with incredibly high profits because there was no supply-and-demand reason for the price increases.

Note what has happened since. When President Obama seemed not to be blamed for those high prices by the U.S. populace, the oil companies backed down. Gas prices are where they were before the uproar, or at least close. No Republicans have been screaming about the high prices for the past month. Why is that?

Oh, yeah . . . Obamacare!

By the way, what are the Republican doing about jobs? Oh, they’re too busy attacking abortions and Eric Holder!

Leave a comment Comments → 26
  1. That’s because lobbyist are paying them not to complain and they have stock or have receive stock in gas companies

  2. harleyrider1 says:

    Really?

  3. menopaws says:

    Amen!!!!! the whiners are too busy picking on Holder and screaming about Obamacare to actually do their jobs…..Check Fox News–we need to install a time clock over there for them!!!! do they get paid for whining???

  4. DougBenedetti says:

    They backed off on the high prices on the west coast when Maria Cantwell threatened to investigate.

  5. BlaineCGarver says:

    It’s supply and demand…Only…..Now: The market can be manipulated to cause the supply and demand….A cabal can start buying, drive up the price, then stop, sell short, and rake it in……Bleeping AzzHoles

  6. LeePHill says:

    Oh, Blaine….so the supply suddenly surged upward???????

    I remember when you clowns were saying that Newt Gingrich would get the price of gas to $2.00 if elected president. It appears that since he isn’t running, the price is going down. LOL

  7. Wow Hill, you might actually understand this.

    Prices shot up from supply disruptions (hence supply down but demand flat, prices up). Supply issues fixed, prices stabilize and fall.

    Oh, and with the economy failing we are seeing oil drop. Great news! Thanks BHO.

  8. aislander says:

    Here’s a lefty committing the logical fallacy. What a shocker!

  9. aislander – you are a left now?

  10. Silence noted.

  11. beerBoy says:

    So CT7 – if the price rise you are going to blame Obama and if they fall you are going to blame Obama? Right?

  12. pantomancer says:

    How did the blame game work before this president?
    (rhetorical question)

  13. Bandito says:

    There was no shortage, so it couldn’t have had anything to do with supply, and the demand didn’t change. So, by what method of accounting do the oil companies justify charging almost $1 more per gallon for their precious fuel?

    And another thing, diesel costs less to refine. So, why does it cost more at the pump then gasoline?

  14. citizen65 says:

    Does this mean Liberals are no longer blaming the commodities industry? After all, that industry led the downturn in gas prices. The fact is that global oil usage is down due to the global economy. The laws of economics (actually a theory) state that lowering demand without lowering supply will produce a lower cost. Are we now celebrating the global recession? Consider the law/theory on Obamacare. We increase demand by about 10% without increasing supply. Pres Obama maintained that increasing the demand without increasing the supply would lower health care costs. Maybe he hasn’t heard about economics 101.

  15. citizen65 says:

    Bandito,
    Demand didn’t change in the US. Oil is a global product. Demand has certainly changed in countries like India and China. Also consider that China has received a free pass on Iranian oil purchases despite the tough stance on Iran. China is Iran’s largest importer.

  16. citizen65 says:

    Beerboy,
    The Democrats certainly blamed pres Bush for gas increases. pres Obama was one of those blamers. If the Democrats can blame a Republican president for x, why isn’t if fair for Republicans to blame a Democrat pres for x?
    On a side note, did you notice that pres Obama asked the UK to release some of their strategic reserves in conjunction with his strategic reserves in order to reduce the price of oil? That means that the president believes increasing supply will reduce the cost of gas. That also means that his every effort to reduce American made supply of oil is an attempt to drive up the gas price and appease the rich environment special interest groups at the expense of the middle class paying those bills.

  17. citizen65 says:

    LeePhill,
    Actually it was candidate Bachman that promised to get gas prices down to pre-Obama price levels. The law (actually a theory) of supply and demand. The global economy is reducing demand so prices are now failing. Trust a liberal to celebrate a failing global economy. A better way might be to increase supply (while researching but not mandating alternative energy. That is the wave of the future, but not present yet).

  18. Sroldguy says:

    I wonder how many people commenting know that 50% of the east coast refining capacity was down for maintenance during the early part of the year and then a couple of the ones left operating blew up and put a serious dent in supply?
    Sound familiar?
    West coast goes down for maintenance and then BP blows up.

    In this area refining capacity is stuck at levels that meet normal demand by federal law. Luckily as demand has gone up the refineries have been able to add on more capacity. Who knows what happens when they can’t just add on to meet demand?
    Then we pay extra for transportation costs because super tankers aren’t allowed to come into the refineries.

    I’m wondering what is going to happen when all the troops come home and start running all the vehicles around for training that need fuel. Then there is the increase in Army helicopters that require jet fuel. Is the extra jet fuel going to come out of the amount of capacity for automobile fuel? Here we sit limited by the feds on the amount of capacity and they keep dumping more and more assets on us that require more and more fuel.

  19. Bb- I am giving BHO credit for the overall downtrend in oil prices. It is due to a flatlined economy.

    The short term spike then fall in GAS prices he had nothing to do with.

    After Mitt gets elected and the economy gets moving, there will be a spike in oil prices until the supply gets increased (2-3 years). That’s how long it will take to fix part of BHOs war on energy.

    The devaluation of the dollar is a whole different problem set. I believe Mitt can solve that by his 2nd term after he gets the debt picture under control.

  20. citizen65 says:

    Sroldguy,
    I’m guessing president Obama is one of those people unaware of this. Otherwise, he could have said so instead of making plans to release the strategic reserve to lower prices.

  21. beerBoy says:

    After Mitt gets elected and the economy gets moving

    Magic!

    Actually CT7, the economy has been moving – slower than one would hope for – under Obama.

    Explain….how will electing Mitt instantly fix the world economy? Will re-enacting pretty much the same policies that led to this mess instantly save the Euro?

  22. After Mitt gets elected and the economy gets moving? Sure, it’ll get moving- just like his companies he took over. It’ll get dismantled and shipped over seas.

  23. Frida- every fact checking organization has found the claim of ‘off-shoring’ to be false. Who drove jobs overseas? BHO and his bad policies. Leftists and the green movement, unions. Nice try.

    Bb-He can fix the US, then re-establish our world standing and influence the global political/economic stage.

    The key is to focus on what is important. BHO keeps meeting with historians to figure out how he can become a legend in the history books (last time in ‘secret’, look it up). Fix the economy!

    While the economy is flatlined he rams through Obamacare. Does that make any sense? Massive regs and cost to govt. I could excuse D-F if it actually addressed the causes of the financial crisis.

    Yes, anyone but BHO. Mitt happens to have worked a day in his life as something other than a politician. That alone should make even the most hard core leftist think twice about BHO.

  24. Sroldguy says:

    citizen65 says:
    “Sroldguy, I’m guessing president Obama is one of those people unaware of this. Otherwise, he could have said so instead of making plans to release the strategic reserve to lower prices.”

    What was it Newt said back in Feb of this “election year”?
    Something about $2.50 a gallon gas?
    Oh my! What’s Obama going to do now?

    Who would ever guess in an “election year” that Obama would say shortly afterwards that he is going to release oil from the reserves?
    I’m guessing he figured some people have a short memory and will not remember that less than a year before he had released 30 million barrels from the reserves in June, 2011 – to bring the price of gas down?

  25. BlaineCGarver says:

    Someone please explain how the market works to the morons…..You are buying futures, now what is NOW available. If enough people are buying FUTURES, the price goes up (that the demand part). After the price has been driven up some, you start, enmass to sell short meaning you’re betting the price will go down and with mass selling, by golly it does. Wall Street don’t care because they make bucks on every sale if it goes up OR down….Obama comes in due to the crappy economy (the demand part….people can’t afford this stuff as much as they used to). Here endeth the lesson.

  26. BlaineCGarver says:

    Forgot: The politicans look the other way most of the time, because the Market lines their pockets with cash as well as hot tips on what to buy…(remember Hillary’s 10,000 bucks that magicly turned into 500,000?)

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