Gas Prices have dropped despite President Obama's stifling regulations as OPEC has increased production, concerned that without supply, demand would dwindle. Additionally, poor economic news in America and Europe has pushed prices lower for several weeks.
"In an attempt to bring down oil prices that had edged toward $130 earlier this year, OPEC has been pumping like mad, increasing production by about 2.3 million barrels per day." Less supply means higher pain at the pumps. Currently, the price of gas is highest on the west coast, as they "continue to struggle with ramping up production, resulting in a 33 percent drop in supplies from year-ago levels."
The annual report from the Institute for Energy Research states, "At current consumption rates, the United States has enough oil to last into the 23rd century without ever importing a single drop of oil from another country." Some astounding claims are made in this report, such as, "Overall, the United States is sitting on approximately 1.442 trillion barrels of recoverable oil deposits," which contradicts the president's claim that "With only 2 percent of the world's oil reserves, we can't just drill our way to lower gas prices."
Encouraging fuel efficient alternatives is a good thing. However, manipulating Americans by forcing them to pay more for gas is not the solution.
President Obama: The Green Agenda
President Obama, who has made it known that his goal from the beginning was to decrease the use of fossil fuels by increasing the price of gas, is getting his wish, as less Americans are driving. He has stated that although he would have preferred the price of gas to rise more "gradually," ultimately high gas prices will force Americans to lower consumption and buy more fuel efficient cars. He believes that the key is the automobile industry, and his touting of the failed Chevy Volt. He has balked at GOP arguments that "oil prices would be lower if his administration had allowed more drilling" and has mocked those who disagree as "flat-earthers."
Energy Secretary Steven Chu was quoted in the Wall Street Journal in 2008, "Mr. Chu has called for gradually ramping up gasoline taxes over 15 years to coax consumers into buying more-efficient cars and living in neighborhoods closer to work." At a Senate Energy and Natural Resources Committee hearing in March, Senator Mike Lee (R-Ut.) challenged Chu on his statements about the benefits of the high cost of fuel. He asked Chu, "So are you saying you no longer share the view that we need to figure out how to boost gasoline prices in America?" Chu responded, "I no longer share that view." The Obama-Appointed Energy Secretary has done a complete flip flop on his position.
In a time of particular economic insecurity, the cost of oil is a huge factor if Americans want food on their tables, heat in their homes and a roof over their heads. Innovative solutions and entrepreneurial spirit of Americans is being stifled and it is the key of getting America back on track.
Watch the President discuss his preference for a "gradual" increase in fuel prices in 2008.
*Photo Credit: Ben Powless