Gas prices aren’t Bush’s fault

President Bush is often blamed for the rise in gasoline and diesel fuel prices. I disagree with a lot of Bush’s policies, but we need to consider some other factors that he has no control over.

First, this is not just a U.S. problem manufactured by politicians of either party. This is a worldwide problem and has been for a long time.

Consider this: 35 years ago I made a trip to Europe and, at that time, fuel prices were near $4 a gallon. Just a month ago, I was privileged to make a second trip to Europe, and the going rate was near $8 a gallon.

Who are they to blame?

President Bush does not control what price nations such as Iran, Saudi Arabia and Venezuela sell their oil for.

Secondly, we hear much talk about reducing our dependence on foreign oil. How will that happen unless our own supplies of oil are taken out of the ground and refined?

How about all of the endless lines of people using drive-throughs at fast food restaurants? The gas they waste while idling contributes to the cost of fuel.

Come on, people. Wake up to what you’re wasting.

Dave Maxey
Blue Springs

Comments

[NoMoreMrNiceGuy]

Let's follow Casady's insight and we see that in fact Obama, Hilary and the Democrats are either liars or lack undertsanding of the market or both.

Look these few up on NASDAQ and their EPS, hardly raking it in compared to other companies.

XOM
CVX
HEP
TSO

[NoMoreMrNiceGuy]

Casady how can we simply target one industry from another based on it's stock value, growth percentage or margins . This sounds like Hillary's profit confiscation scheme which in the end hurts everyone employed for any company being punished for profiting. Basically a government run Enron scheme. Government taking what is not theirs, fine, corporations making prifit, not fine.
I understand in depth the financials. Tesoro for example actually a better 06 but better dividends in 07. I think we should let the government target and confiscate simply to prove it will make things worse, cost jobs, increase prices on products and services.

[Engineer]

Casady
When the value of a firm grows because of investment in plant and facilities to serve the growth of demand for its products, isn't that how our economy is supposed to operate? When production and supply can no longer meet demand don't we have a serious problem?

[jack]

casady: I get it! Same way David Glass cries "poor" about the Royals because he "isn't making any money" despite the value of the team having gone up about $75mil since he bought them.

[Casady]

Off course earnings as a percent of revenues will remain flat. The value of the company however, has increased by 35% based on increases in EPS. I have not reviewed their stock price but I would venture to guess their market cap has increased accordingly.

You can argue all you want that their margins remain flat but can you argue that the value of the firm as a whole has remained flat? If so, I suggest you brush up on your financial analysis skills.

[solomon]

stone,

I respect some of the people here, you, I envy.

[NoMoreMrNiceGuy]

What's even funnier, the casino, restaurants and movie thaters are PACKED with indigent poor souls that can not afford to get to work since they use less than 2 gallons a day to commute. Obama's math is fuzzy. I say people are spoiled.
I do agree with devin to some regard, but boy would our urban core be crowded and filthy with everyone being forced by govt mandate to live within walking distance of their job. (really sicks if you work in leawood and make $15 an hour, good luck on the cheap housing!).

[NoMoreMrNiceGuy]

They're net is the only metric, it's not what you make but what you NET. They are selling more volume hence increased total gross revenues, margins remain flat.
The government is making the lion's keep of revenue, not oil companies.

I say shutdown every refinery and make everyone suffer. Same goes for coal fire plants. Shut'em down. Then the government gets zilch and gas becomes a premium. Hannah Montana will be the least of the victims worries. People simply want to pay what they FEEL is fair not what market dictates. Maybe Obama can mandate what type of cars we can drive, I can see it now. There will be vehicle contempt laws and people jailed for not driving a sub-compact car. I would lose my job as a truck is required for the work I do. I wonder if Obama will offer free government issued Hybrids and solar wind cars for everyone of certain marital and demographic status?

[stone]

liberals want more conservation and more efficiency. Conservatives want more drilling.

Eng got it right- how about doing both? This would help, a little, in the long term.

How about we work to curb inflation too? Then the weak dollar wont cause OPEC to need to raise prices to make up for their lost revenue from only being able to buy 200 luxury automobiles from selling an arbitrary # of barrels now, whereas a few years ago with the strong dollar, they could buy 400 luxury automobiles by selling the same arbitrary # of barrels of oil.

I read an article the other day about people who use used cooking oil from McD's and places like that to run in their cars (converted diesel engines). It only cost them around $1 a gallon, and they get better gas mileage. This seems like it might be a viable option: use the grease we create from clogging our arteries at McD's and Burger king to power our vehicles.

Plus, filling the streets of LA with cars burning cooking grease, and combine that with the legal herb in LA, munchies will be constantly prevelant, boosting the food service industry's economy!

[jack]

eng: Agreed. The problem I see is that so many people are looking for an answer that will fit on a bumper sticker. It ain't gonna happen.

In addition to your drill AND conserve proposal, I would suggest exploring every possible alternative fuel.

[solomon]

NYAJ,

No need for me to take HRC to task for a ridiculous promise made while campaigning. We all know that what she proposed would not happen.

It is my understanding that oil prices are based on futures. Under those circumstances (variables) I don't see OPEC as the villian you cast them as.

[Engineer]

Recently out of each dollar spent at the pump for gas 69 cents went for crude oil, 18 cents went for producing, transporting, refining, distributing and handling and 13 cents went for taxes. Obviously the big cost is for oil. One way to diminish the adverse impact on our economy would be to increase domestic production everywhere possible. Another way would be to decrease the use of oil either by using alternative fuels or by conservation or both. If we mandate higher MPG for vehicles we are in essence mandating smaller, more flimsy, lighter and more dangerous vehicles. The four cycle internal combustions engine has been around for 100 years or so and no great advances in its efficiency are apt to be made. Presently it does not appear that bio-fuels can ever be more than a supplement. Despite this fact we need to go on exploring alternatives, searching for a long term solution. However for the present we need to drill wherever possible and conserve however possible.

[jack]

Hey! NoMo! Take a deep breath. You are going to hurt yourself being in a constant rage.

[Casady]

I'm not sure net profit to revenue is a valid metric here NMMNG since there was a such a significant increase in revenue.

I think the 35% increase in EPS over 2007 is a more telling metric, and that tells me that oil companies are indeed profiting from the current spike in market prices.

[NoMoreMrNiceGuy]

8.8% net profit. WOW! Those thieves!

http://www.hollycorp.com/investor/hollycorp.annualreport.2007.pdf

Only 59% of refined product is gasoline with the remaining going towards other petroleum based products.
Some people reallt think there is a magic price button the President controls. It will be at least entertaining to watch Obama NOT deliver on the majority of his hype and false promises, like promoting that he can somehow reduce gas prices with more taxation and punishing the oil industry for doing what, 8.8% net margins?

[NoMoreMrNiceGuy]

8.8% net profit. WOW! Those thieves!
Only 59% of refined product is gasoline wiht the remaining going towards other petroleum based products.
Some people reallt think there is a magic price button the President controls. It will be at least entertaining to watch Obama NOT deliver on the majority of his hype and false promises, like promoting that he can somehow reduce gas prices with more taxation and punishing the oil industry for doing what, 8.8% net margins?

[Not Your Average Joe]

Solomon, International Law prohibits illegal price fixing. You can sue across international boundarys. Lebanon finally lost the international case over aiding the terrorist that shot down the plane over Lockerbee Scotland in the 80s. They had to pay out $6 billion to the families.....in agreement for the US lifting sanctions. It can be done. It has been done.

HRC said recently, if she is President, she intended to take OPEC to court and hold them responsible for price fixing. She is an attorney and like her or not, she is not stupid. If it can't be done, she would not propose it. Given that, I hope you can keep your response focused on the fixing of oil price issue and not go on an anti-HRC bent.

"Hey Joe, where does it say the Veep cannot have a private conversation with anyone? Do you lose all your rights to privacy once you are elected to public office? If so why in the hell would anyone for run?" Rogue

Dont tell me you dont know the difference between public and private lives/converstions. Grow up. The President can do whatever he wants in private in the bedroom or in private conversations, but when he/she makes public policy affecting all of us.....you dam right he does not have any privacy. He owes us an open adminstration to tell us what he did and why. He is a president not a King.

[devin]

"ride it like next seasons dogfood."

It took me a moment to get that one, but that's hilarious, solomon. I gotta remember that.

With all the grumbling about gas prices, I thought I'd point out that next week is Bike Week & Car-Free Challenge. What better chance to actually DO something about high gas prices other than just whine and blame? Besides, with 60+ events all over the city, it looks like it'll be a lot of fun, too.

http://www.kcbike.info/bikeweek

[solomon]

Good day to you too, NE.....

How about a comment on how your calling Obama a racist fits this thread.

And no one would make comments about how your ex-wife button is so easy to push if you didn't ride it like next seasons dogfood.

[Anne]

"How about all of the endless lines of people using drive-throughs at fast food restaurants? The gas they waste while idling contributes to the cost of fuel.

Come on, people. Wake up to what you’re wasting."

Come on Dave. How much gas do you suppose is being wasted every day in Iraq?

This was written in 2007: ...[all motorized transport] consume close to two million reported gallons every day of oil..." by Barry Sanders on October 28, 2007 in the Huffington Post.

Therefore Bush definitely has part of the blame for high gas prices.

[Anne]

"How about all of the endless lines of people using drive-throughs at fast food restaurants? The gas they waste while idling contributes to the cost of fuel.

Come on, people. Wake up to what you’re wasting."

Come on Dave. How much gas do you suppose is being wasted every day in Iraq?

This was written in 2007: ...[all motorized transport] consume close to two million reported gallons every day of oil..." by Barry Sanders on October 28, 2007 in the Huffington Post.

Therefore Bush definitely has part of the blame for high gas prices.

[NoMoreMrNiceGuy]

So how much SHOULD gas cost and how is that price determined?

Sol - racism is exactly that, is a requirement is being a specific race as a qualifier, it is racost. Same goes for gender adn marital status. You can go phuck yourself about the ex-wife comments. You may be an advocate of women being allowed to scalp the system, lie and commit perjury, but I am not. The government is the one that allows much of the fraud to go on so in fact they are to blame. I work and have since I was very young, NOTHING was handed to me, I earned everything and every penny we have. It is refershing to know that the majority of you are perfectly content with the State Auditors findings and advocate further fraud and libel. As for LJ, may he break his other foot out ho' chasin' before the season even starts.

[T. Hanson]

Sorry January 20th...

[T. Hanson]

kcstar_is_one_sided,

You mean that a politician would say anything to get elected?! Shock.

“No more new taxes”

Oh yea wasn't it Bush that said he would send Cheney over to the Mideast to talk to OPEC... that was about 2 months ago.

"You doing one heck of a job Cheney..."

Once a Democrat gets in office I just hope all you right wingers will remember "it is not the fault of the President for the gas prices" as you been repeating over and over again in Bush's defense. But I have a feeling that once the price of gas hits one cent over what it was on January 9th 2009 you all scream:

“Look what happens when a Democrat gets in office!”

P.S.

Other quotes to get elected by:

[Bush]: "...I am proud to stand up and talk about the best of America and Wendy Kopp...I hope young Americans all across the country think about joining Teach for America..."

Fact:
He eliminated the program.

On the campaign trail in 2000:

[Bush]: "...The state can do what they want to do [on gay marriage]..."

He sponsored a Constitutional Amendment.

Campaign trail in 1999:

[Bush]: "...I believe they've moved that sign, ‘The buck stops here,’ from the Oval Office desk to ‘The buck stops here’ on the Lincoln bedroom, and that's not good for the country. It's not right. We need to have a new look about how we conduct ourselves in office..."
(referring to sleepovers in the Clinton WH)

Fact:

(Source CBS) President Bush and first lady Laura Bush have invited dozens of friends and relatives to sleep over at the White House, from Republican fund-raisers to Texas pals such as pro golfer Ben Crenshaw and country singer Larry Gatlin.

List can go on and on...

[Jim]

"What I think the president ought to do [when gas prices increase] is he ought to get on the phone with the OPEC cartel and say we expect you to open your spigots...And the president of the United States must jawbone OPEC members to lower the price."

- George W. Bush, January 26, 2000

So far, he hasn't taken his own advice.

[solomon]

NYAJ,

How exactly is OPEC an illegal price fixing collusive organization, or more plainly asked, illegal by what laws?

[Rogue]

Hey Joe, where does it say the Veep cannot have a private conversation with anyone? Do you lose all your rights to privacy once you are elected to public office? If so why in the hell would anyone for run?

And, gasp, imagine talking to energy producers when trying to determine an energy policy? Wow, what nerve? Who should he be talking to, Susan Sarandon?

Now, what deep dark eveel, did he and the oil execs plot? You tell me, the Democrat Conrtess has launced a basizllion investigations againts the White House, and you got one idictment for a process crime.

In short bumpkus.....

That whole line of criticism is such a crock, get real for once.

[kcstar_is_one_sided]

T Hanson -

I'll play too. The Dems said that they'd get the gas prices under control. I don't recal Bush saying that.

[Not Your Average Joe]

TYPO. Sorry, I meant "Why shouldn't we know what happened in there?"

After all Cheny et al conducted that meeting as publically elected officials, while collecting a paycheck from the US govt, to determine this country's energy policy. To say we dont have a right to know is cowardly.

[jack]

Presidents get both more credit and more blame than they deserve. Many things are outside the control of the president. Most of the gas price increase is just that. Out of his control.

Nothing exists in a vacume. Part of the problem is that the economy as a whole is in deep trouble. Those with enough to do so started out dumping their money into precious metals, just like in the past. Then they realized that oil was going up quicker. Now the speculators, who in the past would have run up gold, are running up oil prices.

And that ain't the only reason. It is all entertwined.

Of all Bush's many failings, most of this ain't one.

[Not Your Average Joe]

Well having a Texas oil man in the White House sure hasn't helped the situtation.

Actually I blame OPEC for the prices. They are an illegal price fixing collusive organization who's sole purpose it to control the price.

And Joe Barone, no we never did get the minutes of that secret meeting that determine public energy policy. I think it was a great question. Why should we know what happened in there?

[Casady]

Hey BD:

First of all, there is no oil company monopoly. The Sherman Anti Trust Act took care of that. Second, gas prices are not the fault of the oil companies either. Oil is traded on the comex and a weak dollar and a hot commodities market in general has pushed the price of oil to over $120 per bbl.

[big dreamer]

Gas prices are not Bush's fault or the government's really. However, those are the only entities in the US with enough power to push the gigantic oil monopolies in this country to do what is right. Perhaps higher gas prices are NOT the end of the world, but I would like the opportunity to be able to afford something more economical on gas. Yet, I can not do that because all vehicles large enough for my 6'5" frame are too big to be economical or too costly for me to afford. I could by a Yaris or other fuel efficient subcompact but I would have to remove the seats and have the interior custom built so I would fit in it length wise. Those cars were built/are built for people UNDER 6' tall so I am screwed on that front. So, I grin and cuss as i fill up my small SUV for 100 bucks a week because I can not find another vehicle I am comfortable in. The real answer will come when the auto industry decides to stop catering to big oil and come up with fuel efficient engines for cars that are comfortable for everyone not just the "avg." size folks.

Ok...enough ranting..blast away!

[T. Hanson]

Ok Rogue, I'll play your game...

January 2001, US Gas Price was $1.52.

8 Years of Bush...

US Gas Price is $3.61.

For the record I agree with the letter that even though I am not a fan of Bush I know he does not control the price of gas and niether does the party that might have a slight majority in the houses.

[Rogue]

It is interesting to note that gas was only just over $2.00 a gallon when your team took over both houses of Congress Joe, and it is almost $4.00 now. Hmmmmmm, perhaps, wait I know, a "windfall profits" tax. Yeah that will do it! Get that going with Osama Obama and Billary Joe......

[solomon]

And here I thought high gas prices were the result of LJs car choice and NEs' ex-wifes dating habits.

[solomon]

We know the weekend has begun in earnest when NEAWG can put his racist perspective into a post on a letter concerning President Bushs' responsibility or lack of responsibility for gas prices.

[NoMoreMrNiceGuy]

Just you wait, we go to a non-baseloadable energy source (wind and solar) then you will see huge influxes on the price of electricity. The same whiners will blame Bush even when he is dead and gone. The only answer is to raise taxes, punish enterprise, increase welfare roles and have universal government run everything.
Let's just have 100% of our earnings go to government then have them run all industries and we all get a National Debit /ID Card thatw e can simply use to pay for all purchases and bills. The entire system to be run by Obama and Co. They get to set rpices based on variables. If yo are white, married and make a certain amount of money, you pay this rate for goods and services, if you are black, female, single with kids, you pay a different rate for those same goods and services. We would eliminate much arguing over fairness this way? Just think, no one would be poor, no one would have to worry about personal finance or household budgeting skills.

[NoMoreMrNiceGuy]

So how much should gas be Joe? How do we determine what the price should be? based on what? Should they be required to operate at a loss? What about other business that are raking in much higher profit margins? What about government that keeps more revenue from a gallon of gas than anyone else involved in the process? How come the casinos are packed at night if everyone is soooooo broke? Why are video games at an all time high in sales? Remind you what Al Gore and his lawyer cronies did to the tobacco industry, who benefitted from that? His lawyer buddies charging the American taxpayer $1,000/hr that's who.
I am not a Dick Cheney fan either but you are speculating. Maybe all gasoline stations should be unionized and forced to hire union gas attendents, then gas would be $12 a gallon.

[Joe Barone]

Have we ever learned what happened in the highly secret meeting between Cheney and the oil executives at the beginning of the Bush administration? Just wondering?