Thunderpig’s Mirror

Gingrich on Solutions to High Fuel Prices

Posted by Thunder Pig on June 13, 2008

This (high fuel prices, and the Democratic support of same) should be the thing the this entire election season revolves around.

We should dump half of our Strategic Reserve on the World market. The Democrats should agree to this, because they supported the idea in 2005, and more recently, Speaker Nancy Pelosi called for us to stop adding to the Strategic Reserve, so she understands the effect that putting more oil on the market will lower prices. Wonder why she won’t let us put millions of barrels of oil on the market every day? What does she have against $2 a gallon gasoline?

Compare the Democratic and Republican plans:

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6 Responses to “Gingrich on Solutions to High Fuel Prices”

  1. Al Fin said

    I believe that investment banks such as Morgan Stanley and Goldman Sachs have sequestered up to 8 times the amount of oil contained in the US strategic reserves.

    Goldman Sachs is predicting oil to 150 and perhaps 200 a barrel very soon. How would they know that? Is it possible they have ways to influence the market in that direction?

  2. Thunder Pig said

    It’s possible.

    I believe it is likely that they know how unlikely it is that the Democrats and moderate Republicans will never allow us to drill here in America on any large scale, build new refineries on any large scale.

    I used to listen to NPR in the 80’s and 90’s before I got my XM Radio, and I remember several Democrats and Environmental groups wishing that we had high fuel prices like Europe so that we would look to alternative sources of energy.

    It is funny how when Clinton was in office, the Democrats wanted to draw down the Strategic Reserves, and the Republicans (myself included) was against it.

    Now I found that the roles are reversed. Crow isn’t very tasty.

    It is my belief that the left will fight any significant move to develop alternative sources of energy that will be cheaper than what we use now. They will find something wrong with it because their agenda is not the environment, it is a philosophy of control, and they wish to deconstyruct our society so that they might replace it with one of their own.

  3. alex said

    I think both the democrats and Republicans are correct, and a few more people should add in their ideas. As we have to be creative in trying to reduce the price of oil. But we can’t leave it to the Market to decide alone as the only way the market will move is when the people push them. But when there is no unified movement on the people to try and force the free market nothing happens and the companies just make larger profits and squeeze you and I.

    If commercial hording can be stopped or atleast cap’d then there is the possibility of reducing the upward spiral on prices. Atleast one of the pressures anway.

  4. Thunder Pig said

    They cannot BOTH be right.

    One opposes any new drilling in areas where oil has been proven to be. The Democrats will allow drilling where there is too little oil to go after.

    It has been proven that the USA has at least three times the reserves of Saudi Arabia, and perhaps more than fifteen times.

    If we began exploiting that resouces, then the price of oil will come down by at least half overnight, because OPEC does not want us drilling.

    When given a choice between a Free Market and a Government Market, I always go with the Free Markey. {see USSR]

    There is no such thing as hoarding in a Free Market.

    Did you know the oil companies make only 8 cents on the dollar profit? And that they pay 35 cents on that dollar to the feds? Who is making the most off oil? The government!

    Soft drink companies make 22 to 30 cents on the dollar profit…

    Your biggst enemy in the oil business is the enviroweenies and the Democrats. They are more dangerous to our society than the USSR ever was…and they should suffer the same, and disappear into history as a bankrupt philosophy.

  5. alex said

    True, but even Warren Buffet (Daring of Capitalists everywhere) in his latest book and again in a recent article in News week said that we can’t leave everything to the Free Market that there should be some Government Controls.

    This would help smooth out the wrinkles in the system as there are many, hence all the boom an bust cycles cause greed and panic take over, which is nothing to do with the free market or true value of things.

  6. alex said

    opps left this out.

    True the Oil companies are not making as much profit as they would like, this has nothing to do with the price o taxes, more to do with the inefficiencies of the refinery process and not the tax take. But if you factor back in the tax breaks that the oil industry in the US gets back from the Fed (which they never publish when showing the profit) as it is handled differently within the accounting, then the true profits are much higher.

    Plus the US is one of the few countries world wide that have been protected from serious pricing fluctuations. Because if the US were paying non subsidized oil then the true Market Value of your Gallon of Gas would be $10.28 per gallon (applied 6.65 EUR =
    10.2832 USD and 4.54609 liters per gallon). So if you want Free Market, pay the full price then there might not be such a global supply problem (well excuse for one anyway).

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