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Why do people blame gas prices on Presidents?

Discussion in 'Too Hot for Swamp Gas' started by Diesel350z, Mar 9, 2022.

  1. BLING

    BLING GC Hall of Fame

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    Biden is so “anti-fossil fuel” we are producing more than ever.

    Is there even the slightest question we need to ween ourselves off fossil fuels to the extent possible? Arguably Biden, similar to Obama, is far too pragmatic - obviously putting the preservation of short term economic growth over an actually radical environmental policy (i.e ripping the band-aid off).

    I’m not opposed to pragmatic takes so long as they move in the right direction of the inevitable future, but not only is the Biden admin policy on fossil fuels not radical, he’s done almost nothing (banning drilling on federal lands where drilling doesn’t take place anyway, is effectively doing nothing).
     
  2. citygator

    citygator VIP Member

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  3. G8trGr8t

    G8trGr8t Premium Member

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    He shouldn’t be associated with the rise or fall other than dampening the price spike and the support for future domestic production.

    The solution to high prices is high prices.

    And no potus is going to change that
     
  4. gatorpa

    gatorpa GC Hall of Fame

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    Sometimes business finds away around he Administration despite the road blocks they put up.
    I may not have found the chart that shows we are "producing more than ever" all the ones I find shows we are still below peak production in late 2019...

    [​IMG]
     
  5. gatorpa

    gatorpa GC Hall of Fame

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    Or more supply...
     
  6. philnotfil

    philnotfil GC Hall of Fame

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    Which will be found if the prices are high enough. The Law of Supply works.
     
  7. gatorpa

    gatorpa GC Hall of Fame

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    True there is a break point where higher prices curb demand. Then you get the downstream effects that higher petroleum prices cause (all the packaging, shipping costs etc.)
    It's likely that has not run through the system yet from the recent surge in oil prices.
    Funny that I recently read that Russia just ended selling most of their oil to other buyers to the "supply" impact was really not near what the market expected, thus the big drop in the global price of crude.
     
  8. LTG61

    LTG61 All American

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    Full disclosure: I think Biden is an incompetent, corrupt, senile pervert. That said...

    His admin manipulated gas prices up, and now somewhat down.....and so did Trump.

    Just a few of weeks ago, I heard some remarks from Trump about Biden's policies are terrible and how his policies had created so much supply that prices got so low that the oil companies weren't making enough money. So, he bragged, "we got the prices up some."

    They all do it.
     
  9. mdgator05

    mdgator05 Premium Member

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    So if the price goes up, it is because the administration did something to make it happen and if the price goes down, it is because the industry worked around the administration? Neat little world that you have built there. Clean. Regardless of what happens, it was those dastardly Democrats that caused everything to be wrong.
     
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  10. pkaib01

    pkaib01 Premium Member

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    So how did Biden manipulate prices?

    (narrator: "and a semantic argument was thus born")
     
  11. pkaib01

    pkaib01 Premium Member

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    Thanks Joe!

     
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  12. VAg8r1

    VAg8r1 GC Hall of Fame

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    How did Biden manipulate gas prices up? We know how Trump did it albeit he did so during the pandemic shutdowns when a number of independent American producers were on the brink of bankruptcy so it may have been justified at the time although we (American consumers) ended up paying the price when the economy reopened and insufficient supplies on the world market caused the price to skyrocket.
    Oil Nations, Prodded by Trump, Reach Deal to Slash Production (Published 2020)
     
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  13. BLING

    BLING GC Hall of Fame

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    I read an article, but upon searching I guess it was economists PROJECTING record production in 2023. So not technically there yet, but the trajectory has been nothing but up coming out of pandemic lows and there is zero evidence the current admin has slowed even 1 barrel of production. If anything they probably pander too much to oil interests and short term thinking around today’s oil prices, realizing the obvious political calculus involved (surging prices is a political loser).

    If Biden were an environmental radical he’d say “f your feelings” on $5 gas and shoot for $10, economic destruction be damned.
     
  14. docspor

    docspor GC Hall of Fame

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    don't mean to pick on you...this has gone on here for years. Can't bite my tongue anymore. Price increases (or decreases) don't increase or decrease demand, they change the quantity demanded which is movement along a constant demand curve. It may sound like semantics, but it is FAR from it in economics & a quite important concept. ditto, changes in supply & changes in quantity supplied.
     
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  15. docspor

    docspor GC Hall of Fame

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  16. docspor

    docspor GC Hall of Fame

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    The underlying problem with oil & the reason I have a shitload of money in it is that globally, capital spending in the development of new wells has been dropping since about 2015.

    https://www.cnbc.com/2021/12/23/why...e-about-wall-street-than-the-white-house.html

    Another reason is that investment in finding new wells peaked in 2014 and has dropped sharply since, making it hard for drillers to react quickly to an improving economy. According to S&P Capital IQ data, 27 major oil makers tripled capital spending between 2004 and 2014 to $294 billion, ad then cut it all the way back to $111 billion by last year. Once old wells were capped, new ones haven’t been available to fill the production gap quickly, explained CFRA Research analyst Stewart Glickman.


     
    Last edited: Aug 4, 2022
  17. G8trGr8t

    G8trGr8t Premium Member

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    that requires more refineries. that requires relaxing environmental rules and providing incentives. how would you solve the refining bottleneck?

    he did what he could to oil supply which only shifted, it wasn't decreased, as Russia continues to export at prewar levels. the best thing that they are doing is entering into long dated contracts so lease holders can secure financing to do deepwater rigs that will replenish the SPR. Promise to buy 20 million barrels at $90 per barrel and they will go get it. That keeps the industry investing in these major well costs and keeps that talent on the shelf if needed down the road.
     
  18. gatorpa

    gatorpa GC Hall of Fame

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    It's been well documented here how anti US Oil Biden is. No need to keep restating facts.
    His own words tell everything you need to know.
     
  19. gatorpa

    gatorpa GC Hall of Fame

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    So we aren't producing more than ever right now?
     
  20. gatorpa

    gatorpa GC Hall of Fame

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    I don't take it as picking on me.

    Many experts talk about price affecting demand(so it's not my idea), the break point is different for everyone, but certainly $5 gas will affect demand (much more than $2 gas), people double up trips to the stores, people don't take out their boats and burn gas as part of pleasure activities as much.