Gas Prices – Lies, Myths, and Solutions

Although the following quote is from the 1930s, it is still quite relevant today when one looks at what has taken place recently in our great country.  It would be an appropriate lead in to so many topics.  I’ll reveal who said it later on in this piece.

“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie…”

This post is kind of long, but this is an important topic.  I’m going to talk about the price of gasoline.  You can go through it in less time than it takes to fill up a full size SUV.  Gasoline  sold for $1.83 per gallon when president Obama took office in January, 2009 and has necessarily skyrocketed to a around $4.00 these days and even $5.00 in some areas of the country.  And some of the “gas pundits” say that the end is nowhere in sight.

So why are prices so high?  Who do we need to punish?  Well our Vacationer-in-Chief has some answers.

First it’s those evil speculators.  As the Patriot Post recently said:  “Pump prices keep climbing, so what do those mainly responsible for the run-up do? Try to pin it on someone else, of course…”  Read some myths about oil speculators.  And while you’re at it, look at this from the Washington Times.  And here’s a quote from the Wall Street Journal:

“Mr. Obama is also taking cover on the grassiest knoll of energy politics, suggesting last week that “illegal activity by traders and speculators” is responsible for the oil run-up. This gambit is known as shooting the price discovery messenger. Yet the President directed the Justice Department to launch a criminal investigation, and Attorney General Eric Holder said this week he had already uncovered ‘a couple of things that are disturbing.’ That must be some crack squad.”

I wonder what they mean by crack squad?

Of course no Demagogic Democratic explanation of the gas price explosion (no pun intended) would be complete without blaming the other demons, the big oil companies.  The president has been on the rant of let’s end the $4 billion tax breaks for the big oil companies and put that money toward green energy.  The problem sir, is that wind and solar are not yet viable, they require massive subsidies of their own and it will take years before they can be counted on to be both viable and cost effective sources.  And as far as the $4 billion in tax breaks for big oil, Shell Oil Company has announced it must scrap efforts to drill for oil this summer in the Arctic Ocean off the northern coast of Alaska because of a minor environmental problem perceived by the all powerful and unaccountable EPA.  They will lose nearly $4 billion on this scrapped project.  The leases alone cost them $2.2 billion.  Truth is that ending the subsidies would actually cause gas prices to rise.  That sounds odd, but Oklahoma Congressman Dan Boren (D) explains it so clearly on his website in terms even a president might understand.  And no, that’s not a typo, Congressman Boren is a Democrat:

Tuesday, April 26th, 2011  WASHINGTON, D.C. – U.S. Congressman Dan Boren issued the following statement regarding President Obama’s letter today requesting Congressional leaders eliminate tax provisions that are absolutely critical for domestic oil and gas production for thousands of independent producers across the nation.

“President Obama is completely uninformed about the oil and gas industry. The industry is not made up of just major companies. It is made up of small independent firms like those in Oklahoma that produce a vast majority of our domestic production. For every CEO of a major company, there are literally thousands of blue collar jobs that are affected by his administration’s energy policy. It is a policy that is very inadequate and has left so many on the gulf coast unemployed. Americans are tired of empty rhetoric on both sides and want a real plan. If the President doesn’t want to stand up and be a leader, then his silence would be appreciated from people who are trying to find solutions.”

Specifically, the Administration is seeking to repeal the “percentage depletion” and “intangible drilling costs (IDCs)” tax incentives.  The removal of these provisions would negatively affect domestic independents who utilize them to attract the capital necessary to drill new oil and gas wells inside the United States. It is estimated that eliminating percentage depletion and IDCs for domestic independents would reduce U.S. drilling by 30-40 percent, thereby increasing the nation’s dependence on energy from foreign sources.  Furthermore, the major oil companies are barred by law from receiving percentage depletion altogether, as it only is given to domestic independent producers.  The IDC preference is only available for domestic drilling activity, and as the major oil companies drill primarily outside the U.S., the domestic independent sector of the industry will yet again bear the brunt of losing this critical provision.

So in demonizing the big oil companies, president Obama constantly refers to tax deductions for legitimate business expenses as tax breaks and subsidies“If you tell a lie big enough and keep repeating it, people will eventually come to believe it…

Another huge factor in the skyrocketing of gas prices is the decline of the dollar.  We import a large portion of our oil and as the dollar falls, it takes more dollars to buy the same amount of oil.  Since we have discouraged (call that outlawed) domestic drilling and have become so reliant on foreign oil, the dwindling value of the once supreme US dollar has also had a major role in this run up of gasoline prices.  We’d rather mortgage our children’s future by printing more worthless money and borrowing from China, and then turning around and giving it to Brazil and Columbia for their drilling operations.  It’s no comfort that we will then be their best customer.

We need to stop the madness and start looking out for the American people – NOW.  At the very minimum we need to:

  • Get our fiscal house in order and reduce the deficit and the debt.
  • Stop listening to the Green propaganda (lies) that we can rely on wind and solar.
  • End drilling moratoriums and start issuing drilling leases and permits.
  • Follow the Constitution and stop ruling by executive fiat.
  • Get the EPA and the environmentalists off our backs.

If we did these things not only would we increase our supply of domestic energy faster than most people think, but it would reduce prices even faster when the markets realize that we are serious about our energy independence – just as it did the last time gasoline hit $4.00 per gallon.

We are a free people.  We are endowed by our Creator with certain unalienable rights.  We want our lives, our liberties and to pursue happiness.  We want to go where we want, when we want and to drive what we want.  Rather than reacting to this crisis or should I say “man made disaster” by changing our driving habits as the statists and the greens would have us do, maybe we should just change our VOTING HABITS!

And now to keep the promise I made at the beginning of this piece:  The quote is from Joseph Goebbles, German Reich Minister of Propaganda from 1933-1945.

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About Alan Berkelhammer

Opinions are my own and are not necessarily those of any organization or group.
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9 Responses to Gas Prices – Lies, Myths, and Solutions

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