State of the Union Excerpt:Apparently, the terrorists have not been doing their share impacting the price of oil. Neither have India, China, peak oil, hurricanes, failing infra-structure or the general violence in the middle-east. These things must have fallen off the planet for the time being. Our President will know what to do.
“And this dependence leaves us more vulnerable to hostile regimes, and to terrorists -- who could cause huge disruptions of oil shipments, and raise the price of oil, and do great harm to our economy.” – President Bush
The price of gasoline has been falling a few cents a week for the past month. On Monday, the day before the SOTU speech, the price for a gallon of gasoline in Janesville was $1.99. By Thursday, it was $2.19.
USA today excerpt:The President of the United States, a former oilman backed up by a fully staffed energy department with the latest information technologies and some of the top economic experts and consultants available – could not connect the dots and realize the impact this announcement would have?
The price of crude oil, which accounts for about half the price of gasoline, rose last week after President Bush in his State of the Union speech called for doubling the nation's emergency fuel supply — the Strategic Petroleum Reserve — starting with a government purchase of about 11 million barrels of oil this spring.
You know, out of all the crooked deals, secret energy task force meetings, behind closed door meetings and other information blacked out in the 9-11 commission report, one would think Bush would have shown the proper discretion proposing the doubling of the national oil reserves. If there ever was a proper time to keep his mouth shut and invoke presidential powers to declare this as “insider information,” to be kept secret in the name of free markets and national security - this was it. But nooooo.
He did the only thing he could have done to stop the price of oil from falling further. He may have also saved the ethanol industry from having the carpet pulled out from underneath in doing so. The price of oil has been falling because speculators are putting their money elsewhere. He is a lot of things, but George W. Bush is no dummy.
2 comments:
If we lose the war we give into the terrorist and create another Afganistan. The terrorists will be in control of the Iraqi oil fiels and they will profit from it and use the money generated from it to raise hell on the rest of the world. So, yes this would create havoc on the oil market and our oil prices would go up. They always tend to go up when we have a terrorist threat or unstable area's in the middleeast. That's the way it has always been.
Sure, that's why gasoline was $3.25 a gallon a year ago. Not much has changed, but it was down to $1.99 a week ago. The country has a month of mild winter weather and the global price of oil drops nearly $20?
I think OPEC wants to keep oil in the $55+ range per barrel, and Bil Oil and now Big Ethanol wants to keep gasoline no less than $2.25 a gallon, no matter how low oil might go.
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