Sunday, July 13, 2008

Why High Gas Prices!

Time for a little review. Just five years ago in July 0f 2003 Twin Cities gas average was 1.57 per gallon and as recently as December 23, 2006 we were paying $1.89 per gallon. So what is the real deal with gas prices. Who is to blame? The answers might just shock you!

Well if you are the kind of democrat that wants to believe everything that the liberal media spoon feeds you then you probably think that George Bush and his big oil tycoon, a la monoply, vice president and their ill founded and funded war are to blame for the worldwide increase is gas prices. However, the reality that couldn't be further from the truth. So what is keeping gas prices so high, we examine that question here together.

First the demand side of the issue. Industrialized nations throughout the developing world have increased their the overall global demand for fossil fuels. Just think about it why do you think Bejing looks worse than Los Angeles on every given day. Not to mention the U.S. continues to use its fair share now more than ever. This increase in demand puts price pressures on the barrel price of fuel keeping prices staggeringly high.

Second, the supply side of the issue. OPEC has a long history of intentionally withholding production to limit the supply of oil on the market at any given time. They actually meet, discuss the what their daily output should be, and are sophisticated enough to know exactly what the resulting barrel price, price per gallon, and more importantly what their return on investment will be. The general public must understand that OPEC has no incentive to increase supply and lower prices because that would in turn reduce their financial gains.

Third, the United States has a strategic reserve. The United States does hold significant strategic reserves. Their release always lowers prices.

Fourth, expanding drilling. The U.S. States in its wisdom has made it illegal for any further exploration or drilling in Atlantic, Pacific, Gulf of Mexico, and the Alaskan National Wildlife Refuge. You can blame Democrats here. Dominanted by greenies these environmentalists are intentionally driving up prices to further their political agenda. $4 a gallon gasoline, they are reveling in moment and celebrating the success. They have the general public believing that only clean technology will fix our dependancy on foreign oil and fossil fuels all together. They love it!

Fifth, Democrats in Minnesota raised your gas tax. This is the flat out truth, ask them and they will tell you straight out that they raised your gas taxes at a time when gas prices were at an all time high. There is no avoiding this truism.

So what would drop the gas prices tomorrow?
-Decrease global demand.
-Force OPEC to increase production
-Exercise the U.S. Strategic Oil Reserve
-Legalize off shore and ANWR drilling
-Just begining the process of moving men an materials to the oil fields of ANWR would signal OPEC to drop prices. Oil would not even have to begin flowing before prices would drop and stabilize.
-Actually, recover ANWR oil and begin making it available to U.S. Citizens immediately. Export as little as strategically possible to keep global prices low.
Long Term:
-Invest in smart car technologies
-Invest in clean technology
-Switch grass bio-fuel has tremendous promise, could you imagine a fuel from the weeds growing at the side of the road.

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