Surging Gas Prices, Dwindling Supply

Gas prices are surging and the national average for a gallon of gasoline is hovering around $4 now.  Despite the pain, the Obama administration continues to pursue a strategy that will actually increase those prices.  Instead, we should be tackling the areas needed for a market-based and growth energy economy that will bring more American resources online and begin reducing the burden on the American consumer.

The Wall Street Journal recently said, “Rising gasoline prices, economists say, have sapped consumer confidence and altered spending patterns. They are slowing U.S. gross domestic product growth from an already sluggish level.”  Fortunately, the House appears ready to act.

On Thursday, the House of Representatives will consider the Restarting American Offshore Leasing Now Act (HR 1230) and possibly the Putting the Gulf Back to Work Act (HR 1229).

HR 1230 would require the Secretary of the Interior to conduct oil and natural gas lease sales in the Gulf of Mexico and off the coast of Virginia that have been delayed or cancelled by the Obama administration.

HR 1229 would simply require the Secretary of Interior to either approve or reject an application within 30 days of receiving it while giving specific reasons for delays or rejections of a permit. It would also establish an expedited judicial review process for resolving lawsuits relating to Gulf permits and require the Secretary to conduct a safety review to ensure that proposed drilling operations meet all safety system requirements.

The Bush administration established the current five year plan for lease sales from 2007-2012 and it included two Gulf of Mexico lease sales in 2011 and one in 2012 as well as a lease sale off the Virginia Coast in 2011.  Virginia Governor Bob McDonnell has recently backed Congressman Hastings’ efforts to move forward with the lease sale in lieu of the administration’s current permitorium approach.  The Obama administration and Interior Secretary Ken Salazar initially delayed the Virginia lease sale until 2012, but then announced all Atlantic Coast sales would not be available for energy development in the next five year plan from 2012-2017.

One year after the explosion of the Deepwater Horizon oil drilling rig, the federal government is still slowing new offshore oil and gas exploration and production. The US Energy Information Administration now projects a decline of 240,000 barrels per day in oil production from the Gulf of Mexico this year, representing billions of dollars in lost revenue and fewer jobs.

President Obama and his allies can continue to push out their myths, blaming speculators and oil profits and more, but the fact is there is simply too little new supply to keep up with growing demand which is even made more difficult by rising demand in India and China.  Congress should support HR 1230 and push forward with further measures to allow American energy potential to flourish in the free-market.

Please Share Your Thoughts

4 thoughts on “Surging Gas Prices, Dwindling Supply

  1. we shouldn’t expect the President to concern himself with the cost of Gasoline – risingoprices are bringing to fruition his pipe dream of forcing Americans into electric automobiles as a way of saving the planet from CO2 impairment!

    • We Should and have the Right to expect the President to do his job and this does include providing more cost effective domestic oil drilling and allowing the building of new oil refineries here at home, thus truly freeing us from the dependency on foreign oil, which he continues to tout that he wants to do, but continues for the last two years to do nothing about.
      Other forms of cost effective energy are not available currently and until they are available it is his job to see that we are not overburdened, over and over again, while he pursues his own far left wing personal agendas as a priority. And his giving money to companies to experiment for other renewable sources of energy such as wind is just blowing wind and wasting taxpayer’s money while making investors richer. Wind is not cost effective nor a sustainable source of energy. During high wind days to deal with the surge spikes the better more sustainable renewable source of energy, the Hydro Power Plants, are being shut down allowing the water to go over the dams, thereby not producing a better sustainable source of energy in order for wind farms to look economically feasible, which they are not. How is this productive and best use of energy research and development funds and how will this power automobiles and trucking industry? If all of a sudden all cars were electric there would not be enough land available to install wind farms on to power them all. Common Sense tells us until a more available and cost effective means to power the auto/trucking industry we must use oil and/or natural gas and it is Best if we start producing our Own. This is the answer for many other aspects of our society and economy as well. We must go back to producing, fabricating, manufacturing, and growing and Exporting our own made in America products if we want to become economically sound in the world again, thus making the Dollar value an attractive investment over foreign Oil and foreign currencies and reduce high fuel prices.
      Foreign oil, little or no drilling here at home and no new oil fineries allows the oil companies to control supply and demand to fuel the speculators on driving up fuel prices for their own greed and benefit to both Oil Corporations and Wall Street investors alike while making Oil producing countries richer and richer with the aid of the president and government officials at the expense of the American consumers.

  2. we shouldn’t expect the President to concern himself with the cost of Gasoline – risingoprices are bringing to fruition his pipe dream of forcing Americans into electric automobiles as a way of saving the planet from CO2 impairment!

    • We Should and have the Right to expect the President to do his job and this does include providing more cost effective domestic oil drilling and allowing the building of new oil refineries here at home, thus truly freeing us from the dependency on foreign oil, which he continues to tout that he wants to do, but continues for the last two years to do nothing about.
      Other forms of cost effective energy are not available currently and until they are available it is his job to see that we are not overburdened, over and over again, while he pursues his own far left wing personal agendas as a priority. And his giving money to companies to experiment for other renewable sources of energy such as wind is just blowing wind and wasting taxpayer’s money while making investors richer. Wind is not cost effective nor a sustainable source of energy. During high wind days to deal with the surge spikes the better more sustainable renewable source of energy, the Hydro Power Plants, are being shut down allowing the water to go over the dams, thereby not producing a better sustainable source of energy in order for wind farms to look economically feasible, which they are not. How is this productive and best use of energy research and development funds and how will this power automobiles and trucking industry? If all of a sudden all cars were electric there would not be enough land available to install wind farms on to power them all. Common Sense tells us until a more available and cost effective means to power the auto/trucking industry we must use oil and/or natural gas and it is Best if we start producing our Own. This is the answer for many other aspects of our society and economy as well. We must go back to producing, fabricating, manufacturing, and growing and Exporting our own made in America products if we want to become economically sound in the world again, thus making the Dollar value an attractive investment over foreign Oil and foreign currencies and reduce high fuel prices.
      Foreign oil, little or no drilling here at home and no new oil fineries allows the oil companies to control supply and demand to fuel the speculators on driving up fuel prices for their own greed and benefit to both Oil Corporations and Wall Street investors alike while making Oil producing countries richer and richer with the aid of the president and government officials at the expense of the American consumers.

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