The problem with gas prices: Congress restricts supply

[Little-Acorn]

This has been going on since the 1960s. If the vaunted Democrat-majority congress wants to "make real changes" as they kept claiming during their campaigns, here's a good place to start. But are they trying?

So far, I've seen nothing from them in this area, except for attempts to make us drive less, and/or drive smaller, lighter, more dangerous cars.

Even that cloud has a silver lining, though. If they keep this up, gas prices will rise so high that it will become economically practical to start developing alternate technology that has bee priced out of the market so far.

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CONGRESSIONAL CRITICISM MISSES MARK ON GAS PRICES

As gas prices pass $3.00 a gallon, several members of Congress have taken aim once again at oil companies, promoting everything from a windfall profits tax to breaking the companies up. Yet rather than attacking "big oil," Congress should look in the mirror, says H. Sterling Burnett, senior fellow with the National Center for Policy Analysis (NCPA).

The real problem is that while energy prices are subject to the basic economic laws of supply and demand, Congress continually restricts supply, says Burnett. For instance:

* Congress chose not to lift the moratorium on new oil and gas
production on the U.S. Outer Continental Shelf, putting more
than 85 billion barrels of oil (quadruple current U.S.
reserves) off limits.

* Congress has repeatedly refused to allow oil development in
the coastal plains of Arctic National Wildlife Refuge (ANWR),
putting 16 billion barrels of oil off limits.

* Congress dictates the types of gasoline that Americans burn,
mandating 57 different gas blends that must be refined with
seasonal changeovers.

"The rhetoric coming from Congress shows a naïveté about energy markets and a blatant disregard for their own role in causing high prices," says Burnett. Further, by limiting domestic supply opportunities, Congress has required that oil companies, and therefore pump prices, are reliant on oil from foreign countries sold on the world market, rather than their own domestic reserves.

Source: "Congressional Criticism Misses Mark on Gas Prices," Earthtimes.org, May 11, 2007.

For text:

http://www.earthtimes.org/articles/s...e,104813.shtml

[-Cp]

And the problem with this assertion? I still have yet to see ANY Gas stations with supply problems... there are no huge lines at any Gas station anywhere..

[Hagbard Celine]

This has been going on since the 1960s. If the vaunted Democrat-majority congress wants to "make real changes" as they kept claiming during their campaigns, here's a good place to start. But are they trying?

So far, I've seen nothing from them in this area, except for attempts to make us drive less, and/or drive smaller, lighter, more dangerous cars.

Even that cloud has a silver lining, though. If they keep this up, gas prices will rise so high that it will become economically practical to start developing alternate technology that has bee priced out of the market so far.

-------------------------------------

CONGRESSIONAL CRITICISM MISSES MARK ON GAS PRICES

As gas prices pass $3.00 a gallon, several members of Congress have taken aim once again at oil companies, promoting everything from a windfall profits tax to breaking the companies up. Yet rather than attacking "big oil," Congress should look in the mirror, says H. Sterling Burnett, senior fellow with the National Center for Policy Analysis (NCPA).

The real problem is that while energy prices are subject to the basic economic laws of supply and demand, Congress continually restricts supply, says Burnett. For instance:

* Congress chose not to lift the moratorium on new oil and gas
production on the U.S. Outer Continental Shelf, putting more
than 85 billion barrels of oil (quadruple current U.S.
reserves) off limits.

* Congress has repeatedly refused to allow oil development in
the coastal plains of Arctic National Wildlife Refuge (ANWR),
putting 16 billion barrels of oil off limits.

* Congress dictates the types of gasoline that Americans burn,
mandating 57 different gas blends that must be refined with
seasonal changeovers.

"The rhetoric coming from Congress shows a naïveté about energy markets and a blatant disregard for their own role in causing high prices," says Burnett. Further, by limiting domestic supply opportunities, Congress has required that oil companies, and therefore pump prices, are reliant on oil from foreign countries sold on the world market, rather than their own domestic reserves.

Source: "Congressional Criticism Misses Mark on Gas Prices," Earthtimes.org, May 11, 2007.

For text:

http://www.earthtimes.org/articles/s...e,104813.shtml

Uh, the Republicans had a majority in Congress for the last seven years. Why didn't they do anything about this? Why are you blaming the Dems for this? Could it be because you are wildly, blindly, out of control biased? Nah, it couldn't be that.

[Little-Acorn]

And the problem with this assertion? I still have yet to see ANY Gas stations with supply problems... there are no huge lines at any Gas station anywhere..

That's because the gas station owner paid the (increased) wholesale price for the gas instead of cutting down his order. And he did that, because he knew you would pay the retail price (also increased) he would have to charge.

Glad to hear you don't think these rising prices are a problem, Cp. I'll send you the bill for my next fillup. When can I expect your payment in return?

[Hobbit]

And the problem with this assertion? I still have yet to see ANY Gas stations with supply problems... there are no huge lines at any Gas station anywhere..

Once again, higher prices lead to lower consumption and you will only see lines at the gas station and stations running out of gas when the price is artificially forced lower than its natural market value, like it was in the 1970s.

[glockmail]

Maybe its good that Congress has put 100 billion barrels out of commission for now. This will cause us to use up the Arab's oil first, and when that's all used up we can tell them to pound sand.

[Yurt]

Maybe its good that Congress has put 100 billion barrels out of commission for now. This will cause us to use up the Arab's oil first, and when that's all used up we can tell them to pound sand.

I was going to say basically the same thing. The rest of the world is using up their supplies, while we are not. With my tin foil hat on, I say this is a conspiracy by the US government to horde our untapped oil supplies. But think about it for a minute..........

[shattered]

Once again, higher prices lead to lower consumption and you will only see lines at the gas station and stations running out of gas when the price is artificially forced lower than its natural market value, like it was in the 1970s.

Lower comsumption, my foot.. $1.99 a gallon, or $3.49 a gallon (currently), I still drive the same 40 miles to work every day...

[Dilloduck]

I was going to say basically the same thing. The rest of the world is using up their supplies, while we are not. With my tin foil hat on, I say this is a conspiracy by the US government to horde our untapped oil supplies. But think about it for a minute..........

If oil were food (and in many ways it is),this would be the path that I would recommend we take. Buy theirs first.

[glockmail]

I was going to say basically the same thing. The rest of the world is using up their supplies, while we are not. With my tin foil hat on, I say this is a conspiracy by the US government to horde our untapped oil supplies. But think about it for a minute..........

I have. This is not my idea but from someone else on this board I think. It all makes sense, really.

[glockmail]

If oil were food (and in many ways it is),this would be the path that I would recommend we take. Buy theirs first.

I think it might have been you that said this first?

[glockmail]

Lower comsumption, my foot.. $1.99 a gallon, or $3.49 a gallon (currently), I still drive the same 40 miles to work every day...

Then get off my ass, tailgater.

[gabosaurus]

Why is it that the people who support government subsidized and approved mega-corporation and their right to make profits are also complaining about high gas prices?

[Hobbit]

Lower comsumption, my foot.. $1.99 a gallon, or $3.49 a gallon (currently), I still drive the same 40 miles to work every day...

Sure, but do you use a car with the same milage from back when gas was cheap? Do you run your AC all the time? Do you take as many road trips? Do you caravan or do you carpool? How about all the people you know? Anybody driving a smaller car than they used to? There's more ways to save gas than to not drive to work.

[shattered]

Sure, but do you use a car with the same milage from back when gas was cheap? Do you run your AC all the time? Do you take as many road trips? Do you caravan or do you carpool? How about all the people you know? Anybody driving a smaller car than they used to? There's more ways to save gas than to not drive to work.

Yep.
Yep. (When it hits 80)
Yep.
Nope.
Nope.

People have things to do..They're going to pay whatever gas costs to get those things done...