Day late and a dollar short……

The Administration reminds me of a 6 year old kid dipping it’s toe in a cold, unknown lake. It takes this bunch of inept fools so long to make a statement, come out with a policy that they are almost always a full beat behind the times. They are trying so hard to get it right, but amazingly enough the extra time waiting and they still manage to look silly and say and do the wrong things. They are very transparent, in spite of themselves. Such as helping the price of oil go up by not doing anything about it, ie. sitting on drilling permits. I’m sure the conspiracy is that once oil and gasoline are high enough alternative energy becomes more viable. As I’ve said before, ‘please keep it up.’ Americans might be a little slow and you can fool the majority once, but I’m pretty sure this will not end well for this administration. $5.00 gas will not cause a rush to the auto dealers for electric cars. It will however, cause a rush to the polls next year…
Chlili OUT!

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5 thoughts on “Day late and a dollar short……

  1. I am going to hate saying this , BUT , I agree….I think Obama is a Putz…He said he would take the Subsidy Money away from the Big Oil Companies since they make Billions in Profit and yet it is two years later and he has Done Nothing. He talked about getting us off Foreign Oil and still has not done a thing. The time has past and in two years he will not be the Man again. The Gas Prices are Just a Greedy bunch of Bastards that No one wants to step up to the Plate and take them Down. I thought Obama was going to go After Wall Street. I guess you don’t have to do a thing once WE give you the Keys to the OFFICE….
    I think there should be a Revolt here in the U.S.

    11th

  2. Oil prices are high for global structural reasons. Mostly the economic boom in Asia, Turkey, Brazil. There is little Obama can do about it in the short run. America represents one fifth of global GDP and America’s share is dropping fast.

    Even if Iraq boosts oil production from 2 million barrels/day to 12 million barrels, and even if Venezuela/Canada/US boost oil tar and oil sands production and even if deep water oil drilling permits are expedited in the world, oil demand is likely to outpace supply.

    11thacr, Obama wanted a green agenda. However, he prioritized health care over it, and now lacks the political capital to push a green bill through Congress.

    Interestingly, the price of Liquid Natural Gas in near all time inflation adjusted lows. The price of [natural gas]/oil has never been this low. Mostly this is because of new technology that has made extracting natural gas much cheaper.

    It is puzzling that the US and other countries are not switching their vehicle fleets to use LNG and electricity instead of Gasoline. Similarly, we should be switching from coal to NG for electricity generation.

    Add CO2 sequestration to NG power plants, and we can sharply surge energy use at a low price while dramatically reducing CO2 emissions.

    11thacr, if you look at the US oil/[real GDP] ratio, it has fallen sharply. The US is much less dependent on oil than it use to be. We need to continue to substitute away from oil.

    A good blog on this subject is http://www.consumerenergyreport.com/blogs/rsquared/

  3. 11thacr, Obama shouldn’t go after wall street. He needs to work with other countries to create a single well funded global financial regulator for all large global financial institutions that have systematic risk [i.e. their failure risks collapsing the entire global system.]

    Companies that don’t have systemic risk should be regulated less, not more.

    One of the problems is that we have too many regulatory agencies, each with partial mandates. Plus their employees lack sufficient knowledge or understanding of complex derivatives and the correlations between different financial products and institutions. We pay our regulators too little

  4. Anan is right about the world’s demand for oil rising. Not even a question. What this administration is doing with their quest for a green initiative before it’s economically feasible though is criminal. What they could be doing and what could have been happening for years is the expansion of nuclear power in this country. The tapping of wells in the gulf, off California, in Anwar until we have developed technology to make alternatives economically worthwhile. Anan is also right about Natural Gas. We have vast reserves of it across the midwest that in some states (Colorado being one) that state administrations won’t allow to be expanded for any good reason. We pay farmers to not grow crops but ethanol a corn derivative in this country pushes the price of corn up. In Brazil they produce ethanol very inexpensively because they use beets. All of Brazil has converted to Ethanol I believe it was two years ago. A crop we could easily grow. Beets return per pound is much higher because of the higher sugar content. We refuse to entertain more refineries. We refuse to ease CAFE standards and let many small displacement diesels into the country that are very effective and economical in every country I’ve been to. We don’t do what’s right we do what we need to get elected and keep the campaign money coming in.

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