Thursday, April 27, 2006

Democrats, get out of the way of lower gas prices!

Gasoline prices are not just an American problem. Gas prices are set by the price of oil in world markets, the cost and availability of refinement, and the taxes that governments tack on to the top.

Oil Company profits are not part of some evil plan, although $400 million retirement packages are pretty absurd. The profit comes from a supply and demand problem worldwide where supply is not growing as fast as demand.

The problem with the price of gasoline in America is most affected by the efforts of the left to restrict supply. America buys oil from foreign sources because it is cheaper to extract there. But with that comes a problem in our inability to control production levels that satisfy our needs, as well as the world's needs.

We use more oil than any other nation, which is not a bad thing, because we also are the most productive nation and have a very high standard of living. But when OPEC wants to increase their profit margin by causing supply shortages that boost the cost of oil in world markets, we either live with it or find alternatives.

Now I'm all for alternatives to oil, but I'm not going to spend a penny myself on them until it saves me money to do so. Oil and gasoline is still the cheapest and most economical option today, but if Democrats and liberals get their way, they will price America out of gasoline dependency and into some much more expensive alternative. The affect that will have on our economy will be devastating.

The world supply of oil needs to increase. With increased supply the cost per barrel will drop and we will be less dependent on OPEC and other oil producing nations. We need to drill in Anwar now! Maria Cantwell and her bunch should be voted out of office for what THEY are doing to the price of gasoline in America.

We need more refinement capability. Democrats and environmentalists who have halted the increase in refinement capacity need to be ignored and we need to increase our ability to refine.

Finally, taxes on gasoline should be eliminated and replaced with more "progressive" alternatives. Taxes on gasoline and fuel hurt everyone, including the poorest Americans and add to the cost of goods.

Gasoline is actually a miracle of nature, and the advancements in technology to reduce vehicle emissions have made it a true bonanza to the industrialized world. Until an alternative presents itself that is cheaper, I fully support increasing oil production. I prefer domestic drilling because we can control production, and I support increasing refinement.

Anyone who alleges that our high gas prices are the fault of Bush or the oil companies needs to be rebutted. Regardless of what America does to reduce our demand; we live in a world where demand continues to increase. The problem cannot be fixed on the demand side, but only by increasing supply. We're competing with the world when buying crude, so the only way to contol prices is going to be to increase - not decrease - production. And then once we have it, we need to be able to economically refine it, and that means expanding - not reducing - our nation's refinement capability.

4 comments:

JasonSpalding said...

Have you ever looked at a map of gas prices in the United Stated based on county? Have you compared it to the results of a presidential election based on a precinct map?

Mike Costello said...

Here is a map with gas prices by county nationwide: http://www.gasbuddy.com/gb_gastemperaturemap.aspx

Here is a map of the 2004 election by county. It is shaded to identify the degree to which voters voted for Bush or Kerry: http://www.cscs.umich.edu/~crshalizi/election/countymaplinearlarge.png

I can't see the connection.

Anonymous said...

Similar to the initial poster you chose to take the picture that suites your desires best. Try this picture instead: http://www.cscs.umich.edu/~crshalizi/election/statemapredbluelarge.png

The closer you get to major "democrat/left" regions the more yellow the gas map gets. Coincidence? I think not. Related to voting trends? Not exactly.

What you're seeing is cost of delivery. That big green space, that's prime Mississippi Highway. That provides for a significantly easier passage for gas moving inland. Unlike your desert states which are further away. Now the counter argument is in regards to coast areas not being green also. That's taken care of by two things. 1) Inland area is typically farmland, rural, and prices are subsidized (for fairness and to keep produce prices down). 2) Coast regions are typically large urban cities with dense populations and a higher, overall, rate of gas consumption. This forms a bottle neck at the coastal ports which increases the cost of fuel. Unlike the Mississippi Highway which lets it all in with little fuss.

But there's more. Take one step towards the coincidence and you find that the more dense urban regions (the original voter map linked) tend to vote more "left". Thus your whole problem with Seattle. You want more like minded individuals, move to the Mississippi Highway and enjoy your cheaper gas. In the mean time, I'll enjoy my expensive gas and hope the price keeps going up. Perhaps that will get a few more SUV's off of the roads and the city into funding more "special interest" transportation projects like the light rail.

Just wandering through, no sense in banning me, I probably won't be back...

-- "abused their power to work directly against us to side with special interests."

I take it any interest that is not yours is a "special interest". (Then aren't your interests "special interest"?)

You sir are woefully ignorant of lifes little realities. United States gas prices are still woefully lower than actual world market demand. If anything they should be significantly higher. Come crying when prices hit $10.00 per gallon, then you have a little wiggle room to pray.

Mike Costello said...

Anonymous,

Ban you? You're a poster child for liberal thinking. You want higher gas prices, higher airfare, higher prices of goods and services. You want people with the SUVs to suffer, and you want to crowd people into cities and mass transit. Finally, you can't help but depart with a personal attack and a threat, ooh, that your "last word" will have to suffice because you're going to run.

Ban you? You've done more to help the conservative view than any other comment on my blog. Thanks.

Oh, and as for you're picture, let's go one step further and look at the breakdown by country. Hey, the "United States" is RED. Those damn oil companies are screwing Republican America!