Wednesday, May 13, 2009

Gas prices soar back above $2 a Barack Obama responsible?

In the last week or so, gas prices have returned to familiar territory. Most of Middle Tennessee is now paying more than $2 per gallon. The big question is: who is responsible for the increase?

From the international point of view, OPEC reduced its daily production of oil a couple of months ago. Since the United States relies on OPEC for a lot of its oil, this artificial shortage has helped increase prices.

From the political point of view, our own government deserves some blame. When gas prices soared during the Bush administration, many were quick to accuse him of being in a conspiracy with America's large oil and gas companies. Of course, there was no evidence to support that, but it was a charge that often stuck to the Texan.

So, if we are going to be fair, President Obama deserves blame, too. Somewhere, the president is likely smoking a big fat cigar with the president of Exxon. Of course, I have no proof of that, but if people were willing to stick it to Bush, then Obama should get stuck, too.

From a personal point of view, the weather is getting warmer, which usually leads to more traveling by the public. Increased demand equals higher prices. It is as simple as that.

If there has been one silver lining in the recession, it has been that we have had to cut back on our driving. This helped drive prices down.

Let's hope we are not returning to our old driving habits.


Joltin' Django said...

OPEC is determined to cut production so that oil prices get back up to the $70-a-barrel range. We're probably gonna be seeing gas at $2.50, or more, soon.

God forbid it should happen, but it's not inconceivable that oil prices could really spike soon, a la 2005/06 or 2008. (If Israel attacks Iran's nuclear sites, Carter-style gas lines will probably be the norm the very next day.)

If gas prices do spike in the very near future, I'll be watching closely to see if the Democrats who blamed record-high gas prices in '05, '06, and '08 on President George W. Bush lay similar "we're fed up when they fill up" blame on one President B. Hussein Obama ... but I ain't gonna hold my breath.

Larry J. said...

I agree that gas is gonna spike soon. By July 4, it will be approaching $2.50. Get ready to tighten your belts some more.