President Obama says he cannot do anything about high gasoline prices. It seems to me that lowering gasoline prices should be a lot easier than President Obama’s claimed ability to “slow the rise of the oceans and heal the planet”.
Democrats demanded that President Bush do something about high gasoline prices by releasing oil from the strategic reserve or getting increased Saudi production. Apparently Democrats do believe economic laws, that increasing supply helps lower prices.
Unfortunately President Obama’s major oil related actions have suppressed production which helps increase prices. He shut down drilling in the Gulf and delayed resumption for nearly a year. He has reduced drilling on public lands resulting in about 10% less production than last year. He has threatened drilling on private lands (which has been increasing oil and gas production). He killed the Keystone pipeline that would bring us oil from Canada, increase our supply, and reduce our vulnerability to speculation driven high prices caused by Mid-East unrest.
Candidate Obama said he wasn’t bothered by high gasoline prices, only by their rapid increase. The current high prices have been reached more gradually, the result of President Obama’s policies, suggesting that high prices are intentional.
When President Obama took office, the price of gasoline was about $1.85/gallon, now it is double, $3.70. This increased price is painful, particularly for the unemployed or underemployed. Despite occasional statements to the contrary, President Obama’s actions show high prices are what he desires, not something he opposes. In fact, on Tuesday, President Obama’s Secretary of Energy Chu told Congress that the Administration is not focusing on reducing the pain of high gasoline prices.
In 2008 Chu said, “Somehow we have to figure out how to boost the price of gasoline to the levels in Europe” ($8 – $9 per gallon). Is this the gasoline price objective for President Obama’s second term? It certainly looks that way.
Don Ewing
