Can gasoline get back to $2.50? We FuelFact it

FuelFact is a new project of FuelFix.com. In the runup to the 2012 presidential election, a lot is being said about the rising price of gasoline. We’ll be evaluating these statements, consulting with experts and rating their accuracy.

Inspired by sites like PolitiFact.com and FactCheck.org, our staff will judge the statements on our “truthiness” gas gauge:

  • Full: The statement is accurate.
  • Three-quarters Full: The statement is accurate but needs clarification or additional information.
  • Half-Full: The statement is partially accurate but omits important details or takes facts out of context.
  • Quarter-Full: The statement contains an element of truth but ignores critical facts.
  • Empty: The statement is not accurate.

We’ll kick off the project by looking at Republican candidate Newt Gingrich’s promise to deliver $2.50 a gallon gas.

SUMMARY

Gingrich said skyrocketing gasoline prices could be brought down to around $2.50 by doing four things: increasing domestic production, opening offshore drilling, approving the Keystone XL pipeline and removing bureaucratic red tape.

Gingrich has used the topic as the backbone of a new campaign ad and refused to back off his claims, despite rebukes from Democrats and the White House that say his plan is phony.

“I’ve developed a program for American energy so no future president will ever bow to a Saudi king again and so every American can look forward to $2.50-a-gallon gasoline,” Gingrich said.

So, does Gingrich have the silver bullet for reducing the price at the pump for consumers?

ANALYSIS

Analysts have long said the president — regardless of political party — can have a limited impact on the price of gasoline since it is a globally traded commodity, and Gingrich’s plan isn’t blazing a new path.

Republicans leaders have been calling for months for the Obama administration to increase domestic production by removing red tape and opening more waters for offshore drilling. The Keystone XL pipeline has long been debated for its potential impact on U.S. jobs and prices at the pump.

Patrick DeHaan, a senior analyst for GasBuddy.com, said the points might be good for political fodder, but they are unlikely to make a significant impact on the price of gasoline. And it’s unrealistic to think the four points could bring gasoline to $2.50 or lower.

“If these ideas would actually work, you’d already see politicians using them,” he said.

If the United States tapped offshore fields in the Atlantic, Pacific and the Alaskan National Wildlife Refuge, it would represent only a drop in the bucket to the worldwide oil consumption, which is around 85 to 90 million barrels a day.

“If we drill in the middle of Manhattan and everybody drilled in their backyard we would not have enough oil to move the global market,” Fadel Gheit, a senior analyst for Oppenheimer & Co. Inc., told CBS News.

Production from those fields could take years to come online and likely wouldn’t bring any short-term or long-term relief for consumers, DeHaan said.

However, DeHaan said the Keystone XL could potentially lower gasoline for some U.S. drivers. He said the pipeline could lower prices by 15 to 20 percent, but even with those predictions, Houston, Texas and national gasoline prices would still be over $3 per gallon.

The ripple effect from the pipeline could also cause higher prices in the Rockies and the Midwest, which are already benefiting from discounted crude from Canada.

RATING

Gingrich could possibly slightly lower prices for consumers, but analysts say it would be tough for him to get down to $2.50. Our FuelFact “truthiness” rating: According to analysts, this claim is hitting empty on the facts.

74 Comments

  1. James

    Of course this liberal rag would find his ideas to be empty, I bet research would show the same writers are among those who blasted Bush for his inability to do anything about high gas prices.

    #1
  2. dsl987

    Why didn’t you just say, “If crude falls to $75, we will have $2.50 gasoline” and we have no way of accomplishing that as OPEC controls the price.

    #2
  3. native

    Not drilling more will surely keep prices on the increase.

    #3
  4. Mark from Louisiana

    Didn’t the price of oil and gasoline drop after Bush said he would open up the eastern gulf and the east coast to drilling?

    #4
  5. olddispatcher

    I think it is weird that Newt would come to Oklahoma and tout cheap oil. He might as well have opened with, “Hi, I’m Newt and I am here to put all of you out of business.”

    He could have then concluded with, “After I have destroyed all the jobs in Oklahoma I will move on to Texas and do the same thing there. Well, I do pity those Americans that depend on the oil business for their jobs, but they must be ground into the dust if I am to pick up any votes.”

    #5
  6. txloanguy

    The main mover of the markets is expectation. Iran threatening (and when don’t they?)Wars? Fires? Anything that Might stop any flow of oil. Why don’t the Libs believe that the imminent production increase would move the markets lower? The Dems want to ask Saudi to increase production but they don’t want to increase production here? I could care less how many snail darters we kill and even torture to get more oil. But Obama doesn’t want it because cheaper oil hurts his beloved Volt. New management is necessary at the biggest company in the world. Goodbye Obama.

    #6
  7. Paul

    Wasn’t it “$2.00″ just a few weeks ago, Newt?

    #7
  8. txdesign

    “More drilling equals lower gas prices” is a flawed theory that has been peddled by many GOP candidates. One of the reasons there are currently three times as many rigs drilling as during the Bush administration is BECAUSE oil is as high as it is. If it were to drop to $75 over night many of the marginal fields that are currently being drilled would stop producing as would fracking (which is very expensive). Are you listening? If oil prices drop, production slows and prices remain the same. Or they might even go up if more refineries are closed.

    $2.50 gas is a fairy tale to get your vote.

    #8
  9. Jeff

    Where were these fact checkers when Obama was telling everyone it was Bush’s fault and to vote for him to lower gas prices.

    Fact checkers are nothing but leftwing journalists. Every fact check publication is run by leftists.

    Is it a coincidence that the first “fact check” is in defense of Obama and mocking Gingrich? I think not.

    #9
  10. Kevin

    “If these ideas would actually work, you’d already see politicians using them,” he said.
    ——

    That presupposes the fact that everyone wants the price of gasoline to go down to $2.50. I have vague memories of some guy from Chicago that ran for President in 2008 saying he wanted gasoline prices much higher than where are right now. Along the same note, the name of Energy Secretary, Steven Chu, for some strange reason also comes to mind.

    I give your analysis a rating of Quarter-Full.

    #10
  11. Robert F.

    Wake up call. Looks like several commenters just want to hit snooze.

    My favorite has to be Jeff though.

    “Fact checkers are nothing but leftwing journalists. Every fact check publication is run by leftists.”

    He clearly knows that facts have a distinct liberal bias.

    #11
  12. edsaid

    One of the causes of high oil prices is inflation. Most of the presidents supporters think we can print all the money we need to buy oil and Chinese trinkets for our children. Ain’t going to work. The Arabs will jack the price of their oil up with inflation and the Chinese will come knocking demanding real assets for their dollars. (Like Hawaii.)

    #12
  13. harr1234

    Gasoline prices need to be at $4.00 to $5.00 dollars a gallon and they need to stay there from now on. This is the only way Americans will conserve energy and move towards mass transit and fuel efficient vehicles. There is no other way. The days of cheap fuel are over and like a junkie that refuses to give up his drug we are having problems giving up cheap gasoline even though we know that we are set run out a in few years. Please people we need to start the conservation of our resources. If we run out of gasoline before the transition to other energy sources our economy would collapse and our society would fail. Only those nations that have invested in other means of transportation and other means of fuels will survive. The Norwegians are investing in hydrogen for fueling their vehicles. The Brazilians have invested in gasohol which is almost all bio gradable fuel. The Europeans have invested in clean and efficient public transportation that runs on electricity which they power through wind mill power and solar and natural gas. We have not made a move to either provide a mass transit system for all Americans nor have we tried to move to other forms of fuel sources because of our addiction to cheap gasoline prices.

    #13
  14. D.D.

    Kevin, in regard to President Obama and Steven Chu saying they want higher gas prices; let’s try actually reading the articles or interviews as opposed to regurgitating what you hear politicians, pundits, talk show hosts, etc. say.

    The article in the Wall Street Journal in which Chu is quoted as saying, “somehow we have to figure out how to boost the price of gasoline to the levels in Europe,” was illustrating a distinct difference between the future Energy Secretary and president-elect Obama at the time. Just a few sentences later the article states, Mr. Obama said Sunday that a heightened gas tax would be a “mistake” because it would put “additional burdens on American families…”

    Furthermore, the Chu quote came from an interview in September 2008…before the election, before any Obama administration even existed. The quote appeared in a December (after the election) WSJ article to illustrate some of the differences of opinion within the soon to be Obama administration regarding energy policy.

    In short, yes, that is Chu’s quote, but you have to consider the context…and no, Obama never said he wanted higher gas prices.

    #14
  15. Oilacct

    harr1234, you jest, surely, about the makeup of European power generation. In 2009, the figures I found fastest, it was 37% oil 16% coal, 24% gas, 14% nuclear, and 9% renewables.

    Brazil has reached the limits of their alcohol production, and is consuming more oil than ever.

    #15
  16. bcullum

    While cutting red tape, increasing domestic production, opening off-shore drilling, and allowing the Keystone pipeline to be built may not cut the price of gasoline to $2.50, not doing those things will only allow the price to rise. As a security issue, we need to increase domestic availability of oil. We also need to increase the refining capacity.

    President Obama and his liberal friends are more interested in developing green energy for the future rather than protect American interests by expanding domestic oil availability. Solar thermal electric supplies currently cost 3 times what natural gas produced electric costs. Wind power is at best intermittent and needs to be used as it is produced.

    #16
  17. Paul

    Harr1234, great comment. That being said…as much as I’d like to believe that (Americans changing energy/transportation sources due to high prices)…I just don’t see our “leaders” changing very much as long as they are being paid off by the oil/energy companies. They are clearly stalling on anything that doesn’t include oil or gas. The question has become “what’s it gonna take to stop that?” Hopefully the masses in this country will wake up from the coma they’ve been hypnotized into and force change peacefully.

    #17
  18. Texas Engineer

    “If these ideas would actually work, you’d already see politicians using them” – and normally you would, except we have an idiot like Odoofus ruining things along with his demodumbocrat and environmental extremist wacko cohorts and they are hell bent on getting us off of oil in favor of unreliable technology like wind and solar. We will correct that mistake in November 2012…..yes we can!

    #18
  19. Rancher

    I don’t have a problem with five dollar a gallon fuel. You will need to pay triple for most foods and durable goods. There is no free ride. You can have high fuel prices but you are going to cut your standard of living to third world standards. If producers do not make a profit we simply will not produce. What then? Fuel prices figure into all most everything you consume on a daily basis. Raising the cost of fuel will conserve nothing because it will raise the prices of all other products. Wind and solar power are just band-aids and will never never be a suitable replacement for fossil fuel.This country was built with cheap fuel. Our economy will never recover if high fuel prices remain.

    #19
  20. gulfresident

    harr1234 is either just a lying defender of Obama or TOTALLY void of any knowledge of the facts related to our potential for production in this country. Many analysts are saying we have RECOVERABLE reserves 7X greater than those of Saudi Arabia. It can’t all be recovered tomorrow, but if we don’t start now, it can’t be had three years from now. Obama wants the price at $10.00 a gallon by his own admission. This so he can fill the pockets of MORE of his thieving friends like he did with Solyndra. We are set to run out of crude in a few years ONLY if Obama & his cohorts continue to block all efforts to make us energy independent. The EPA for years blocked the construction of any new refineries. We are now reaping the benefits of their “wisdom”. Just as we will if Obama continues to block exploration & production. AND refining.

    #20
  21. txloanguy

    harr123456789 – The high prices at the pump hobble the economy so much that the tax income for ALL of your pet projects (Can we sing “We Are the World?) isn’t going to be generated. We have the resources to bring prices down. And why do we have to consume less? We pay for the energy, don’t we? You Libs, telling us what we can or can’t do. Get out of our lives.

    #21
  22. Old_Fighter

    Whew! Every now and then, as I begin to actually give the Chronicle credibility again, they hit me with their “left field” fly ball that gives me perspective again. Normally, I would tend to agree that the President, directly, has no real impact on gas prices…BUT this guy (Obama)has spent and regulated so much that his economic damage has (along with that of his lap dogs in Congress, his cabinet of idiots, and his “Czars” of this and that who, by the way, can regulate anything without any accountability to the people) caused the economies of many other country to be negatively affected because they have, in the past, looked to the U.S. lead them out of economic holes. THIS TIME, HOWEVER, the U.S. lacks the leadership at the top to get itself out of these troubled times, much less the rest of the world. Therefore, without any true energy policy or plan, other than to rationalize that high-priced gas will make us seek “green” sources of energy that are still years away frome being cost effective, Obama’s answer is to play the “us-against-them (big oil!)” card and throw more money at entitlements that will only demolish the American middle class and keep the prices of gas…around the world…at high prices for the forseeable future. In short, the best way to bring the price of gas (and other energy sources) down is simply to get Obama and the rest of his cronies out of the White House this fall!!!

    #22
  23. GotRocks

    Actually, it really doesn’t matter if gas prices come down all that much because of our drilling. What does matter is that the money we send around the world to buy oil will STAY in America, and can be used by AMERICANS (including the government). That alone is enough to make Newt’s plan worthwhile.

    This particular quote shows just how out of touch some of the so-called ‘experts’ are: ““If these ideas would actually work, you’d already see politicians using them,” he said.” Is this guy serious? There is a little thing called SPECIAL INTEREST CONTROL that affects decisions made by elected Democrats. The Keystone Pipeline is the perfect example. It is such a no-brainer that even former President Clinton thinks Obama is a dunce for cancelling it – but the difference is that Obama still needs to get votes from these radicals, while Clinton does not.

    #23
  24. shackclan

    if they are really serious about bringing the cost of gas (and oil) down; then remove oil as a commodity on the futures market. then you would have your $2/gal gas back.

    #24
  25. GotRocks

    “Gasoline prices need to be at $4.00 to $5.00 dollars a gallon and they need to stay there from now on. This is the only way Americans will conserve energy and move towards mass transit and fuel efficient vehicles. ”

    Heck, I don’t have a problem with high gas prices either. Even $8.00 gas would be fine with me. It just means that I put away a bit less for retirement (I don’t even come close to spending all of my present take-home pay). In fact, really high gas prices will eliminate traffic congestion and make it much easier for me to get around Houston.

    But what I worry about is the less fortunate amongst us. Unlike New York, where you are from (we can tell, because that is the only part of the country that uses the term “mass transit”), here in Texas it is VERY DIFFICULT to get around without a car – so the poor would suffer, greatly.

    It is easy to talk platitudes about trying to “get people out of the vehicles”, as they do in Los Angeles, for example – but it is MUCH TOUGHER to actually get that done. And by the way, Los Angeles has a HUGE public transit system – but guess what, virtually everyone STILL drives. The trains are EMPTY.

    #25
  26. detada

    Gingrich is just as delusional as the rest of the party of NOthing.

    #26
  27. James

    You can easily lower them with production and keeping our oil at home…but not as much if we sell globally first. We need to fill our need 100% and then sell to others. We have no real need to conserve energy drastically as the leftist nuts lie…there is enough oil for over 3 million years. And we can look for viable alternatives that fit our needs…not like the roller skates they are trying to pass off as vehicles now. Even with that the hybrids cost more and will cost more in the long run to drive and hurt the environment more than gas.

    #27
  28. Dan X. McGraw

    James, crude oil prices are a globally traded commodity so America can’t keep 100% of U.S. drilled oil in the States. Even if we did, we would still have to buy oil on the global market to cover our basic needs.

    #28
  29. Put a big restriction on the speculators and gas/oil prices will come into line with reality.

    #29
  30. BarksintheCountry

    I bet Cheney and Halliburton could get the prices down. We were told for eight years by the democrats in Congress that they were solely responsible for gasoline prices.

    #30
  31. Huck

    Folks, you say gasoline is a world-wide commodity. What is not? The days of the USA controlling everything may be slipping away. Drilling here is not going to change the price paid enough to offset the negatives. I suggest we save our reserves for the time we really need them — like another big war.

    #31
  32. Elliott B

    Hey Dan,

    A federal ban prohibits US crude oil exports with two very small or rare exceptions: Alaskan North Slope crude can receive a waiver from the Commerce department (last done 8 years ago) or you can count the 15,000 barrels a day of Bakken crude that moves across the Canadian border, only to come right back.

    Gasoline and other refined products have no such restrictions, are traded globally and are leaving the US Gulf shores in impressive volumes for the first time in a long time. “US drilled oil in the states” is not so liquid.

    While I praise the goal of the FuelFact project, I hope “Fact” remains a big part of the effort.

    #32
  33. rts

    Lowering gas prices is very easy. Stop speculation. For every barrel of oil to be produced in May of 2012, there are 7 barrels (or more)of oil in futures contracts. Slow speculation, by requiring higher margin requirements on oil futures contracts. Say 75% instead of the current 10% or so. Example, you buy a futures contract for 1,000 barrels of Oil at $100 a barrel + $100,000. All you have to put up is $10,000 or less. At some point before the contract expires you sell it back and take your profit or loss, and the maker of the contract washes out the contract. The contract maker never had any oil, no actual oil was ever bought or sold and it was all a paper work fantasy. Change the rules. 1. No contract can be written unless you have the oil or a contract from a producer to buy actual oil the producer will have on the settlement day of the contract. 2. Increase the margin requirement to 50%. 3. Require that actual delivery be taken. Doing this would get gas back to $2.50 or less. It might bankrupt many of the financial institutions that write the contracts.

    #33
  34. Mark from Louisiana

    Shell Oil and the nation of Qatar have partnered to build a refinery that can refine natural gas into gasoline, diesel, and lubricants. Now they want to bring that technology to America. Biggest problem? The same loonies that want Keystone blocked are gearing up to oppose this new refinery.

    From thehayride.com

    Shell says natural gas is a nearly perfect feedstock because it doesn’t contain the impurities coal or even crude oil contain. As such the diesel the Pearl GTL plant produces has no soot associated with it, and it’s a much cleaner-burning fuel.
    But here’s where it gets interesting. The Pearl GTL project, which cost $16 billion to construct and which employs some 52,000 workers in Qatar, has a problem of location. The products it makes are in demand, but the markets for those products are generally nowhere near Qatar. They’re in Europe, or America, or the Far East.
    As such, the word is Shell is going to build a new GTL facility, on par with the size of Pearl, in America so as to take advantage of the more localized demand. And the word is within three to six months, Shell expects to announce a decision on a site somewhere on the Gulf Coast. And Louisiana, with its plentiful supplies of “dry gas” coming out of the Haynesville Shale and its world-class natural gas infrastructure, could very well win out as the domicile for the facility. Within 18 months of the site selection Shell expects to finalize its construction plans, and it’s expected that four years later a GTL facility which employs some 10,000-12,000 permanent workers will go on line.

    #34
  35. MrColdWaterOfRealtyMan

    Nonsense. One worldwide depression and those gas prices will come right down, and who better to create one than Gingrich?

    #35
  36. Scott

    Yes it can. And anyone who says it can’t is just hating. Just a month ago it was $2.97 at my corner Shell station. So, we know it can hit the $2 mark. $2.50 is doable. Just have to get the industry straight, which won’t happen.

    #36
  37. olddispatcher

    Mark from LA…..

    Is this project going to be anywhere near Haynesville? If so it will sure change the make-up of the area.

    Not that that is a bad thing, but it would be nice if Haynesville could retain the old time charm it has now.

    I love going to the Post Office there.

    #37
  38. Jackalope

    I bet Harr123 also wants European-style grocery prices because he thinks Americans are too fat.

    #38
  39. Jackalope

    Sounds like 2008 all over again with hysteria that $4.00 gas was here to stay (and might even be considered cheap). Then what happened? We saw $2.50 gas. Just look at what happened then to determine if it could happen again.

    #39
  40. West U Coog

    We are exporting gas to other countries! If you think that its Obama’s doing, you are a brainwashed high school drop out that listens to right wing radio for all your facts. The fact is, the rich elite are making a killing from manipulating idiots like you.

    #40
  41. Jackalope

    D.D., it makes no difference if Chu made his statement before the 2008 election or not.

    #41
  42. Dan G

    Your best “expert ” on the subject is from “gas buddy”? Give me a freaking break. That’s even worse than getting an educated opinion from Lundberg

    #42
  43. Dan G

    Harr1234 is an absolute idiot and believes ever damnable lie they ever heard. Hydrogen as a gas is not viable, you can’t contain it genius. Wind? wasted space for low deliverance. Solar? You invest the upfront money that will pay off over maybe 100 years. Electric? that’s not free, in fact it is expensive and getting more so as you libs want to outlaw coal. Biofuel? Using food for fuel, ok let’s use your food first. Nuclear? Now that’s the way to go, but you dweebs don’t want that. You want to bring this country down to the level of your messiahs birthplace

    #43
  44. Paul

    Who would’ve thought? A bunch of people who cringe at the thought of solar, wind and hydrogen power on a fuel based message board in Houston, TX? Why does solar power work just fine, and even at a cheaper cost in other parts of the world? Yet here we are, STILL arguing over (or really just delaying, obstructing, dismissing, etc.) cleaner and undeniably better energy sources…

    For anyone who doesn’t speak languages like “Odoofus”…we don’t need oil or gas like we’ve been led to believe all these years…and any oil we use for things other than energy “needs” (like this computer) can be obtained by growing hemp.

    #44
  45. SaltWaterCroc

    Pearl GTL has 52,000 workers? I don’t think so. That’s like saying Keystone will create 50,000 jobs. Not under any scenario. Don’t like expensive gas? Go for conservation, fuel replacement, and remove it as a commodity to be bet against.

    #45
  46. jwyoming

    This article’s writer is full of the usual industry and government bullshit. Prices are up because our government is sending refined gasoline to Italy and France for backing the ouster of Ghadifi in Libya and then we send an awful lot to Israel so they can subsidize illegal homesteads in the middle east. If we quit shipping our gasoline to foreign countries and quit giving foreign aid in the billions to every ‘tom dick and harry’ country on the globe we could have plenty for domestic consumption and reasonable prices.

    #46
  47. T.C.

    Doing some research on how many NEW refinery’s are being built since George W’s proclamation of lower gas prices? None.. Northeast region has refinery’s closing. The refiner’s are exporting their products (diesel,gas, propane,etc). They are receiving higher prices outside US borders. Until you mandate producers keep their products stateside. Price at the pump won’t drop. It’s a capitalist’s mkt. Best price is the game not low price. Consumers getting fuel efficient vehicles and controlling their consumption. This is much more effective action than relying on all the jawbones who either castigate the White House or preach to keep drilling everywhere possible. Never will the US be energy independent. Ideally is striving towards “Balance”.

    #47
  48. GOP Talibangelical

    The GOP will say any thing to rile up voters.

    It’s not working, let me count the ways:

    1. Sane people will not vote for INSANEtorum.

    2. Intelligent people see through Gingrich’s grandiosity and fabrications.

    3. GOP can’t stand Romney, they’ll just stay home in November.

    4. Ron Paul – Who?

    #48
  49. 42

    “The Democratic Party opposes most drilling, nuclear energy that liberal countries like France and Sweden have, and aggressive action to protect foreign oil supplies. The Republican Party pretty much lets big oil do whatever it wants and refuses to reign in corrupt speculators who drive up the price of oil. So the next time you hear politicians say he or she will bring down oil prices, understand it’s complete BS. If Americans want lower gas prices, cut back. Sell those SUVs, ride a bike when you can. If every one of us bought 10% less gasoline prices would fall fast.”

    Bill O’Reilly speaking on “The O’Reilly Factor,” April 21, 2008

    #49
  50. MONEYMAKER

    Everyone wants lower gas prices but no one wants to help eliminate our dependence on oil. The same people cry are the same ones the continue to live and drive as if gas was .79 a gal. You won,t car pool,drive at high rates of speed, still buying more car/truck than needed, make unnecessary trips and so forth. If mandates were imposed to limit each person consumption then all h3ll would break loose claiming infringement on your rights. Spectulators, world events and global demand will continue to push the price higher.If demand here goes down the i believe the price would fall also.

    #50
  51. MONEYMAKER

    Here as we speak in casper wy where it is booming as well as rock springs wy..south dakota,north dakota, ohio, south texas and pennsylvania. Where do you think this oil and gas is going.HINT? NOT HERE IN THE US

    #51
  52. ipscshooter

    Wasn’t it early in the Bush43 administration that the Chronicle hacks were saying that OCS drilling wouldn’t impact prices because it would be 10 years before we got that production online? Well… It’s been over 10 years since Bush43 first took office…

    In early 2008 we hit nearly $4.00 per gallon. In the summer of 2008, Bush43 announced that he was revoking the Presidential ban on OCS drilling, and by January 2009, gasoline in Houston was down to $1.40 per gallon. Shortly after the current administration was sworn in, Obama reinstated the OCS drilling ban, and, lo and behold, oil prices have been rising ever since… Of course, his administration’s stated policy was that gasoline should be $5.00 per gallon (or higher according to Mr. Chu…)

    #52
  53. Hellscreamgold

    “dsl987
    March 14, 2012, 4:05 PM

    Why didn’t you just say, “If crude falls to $75, we will have $2.50 gasoline” and we have no way of accomplishing that as OPEC controls the price.

    OPEC controls their price because the speculators are able to roll purchases before taking delivery. If they made that illegal here in the states, then the price would go down, because a downshift in price would force the contract buyer to take delivery of something and pay more than the value.

    The speculators are the ones jacking the price way up, and the govt isn’t doing anything about them.

    #53
  54. Dan X. McGraw

    Jwyoming, are you citing an article or you just making an opinion?

    #54
  55. funny how no one places any blame on the commodity traders that bid the price of oil and gas futures up.

    #55
  56. Dan

    Somebody should tell Newt that high gas prices are the result of oil speculators and are mostly irrelevant to supply and demand. These oil bandits manipulate the market just to get rich and screw the public in the process.

    #56
  57. mark

    “would be tough for him to get down to $2.50″

    Tough is an understatement! Glad to see you gave this idea an “E”, as it is empty of everything except rhetoric.

    One day, someone needs to note that Saudi Arabia has been a staunch ally for 50+ years. The bashing of this ally by adults who should know better is pointless and disappointing. Ultimately, of course, it’s just business; we give them money, they give us oil. Who cares which nation we import it from, it’s all the same on the balance sheet.

    #57
  58. mark

    re ipscshooter: Bush announces OCS drilling and gas prices plummet, Obama comes in, declares OCS ban, and gas prices soar.

    This conveniently ignores the economic meltdown of 2008 and subsequent plunge in demand for gasoline. This also implies that the deaths of eleven men and millions of gallons of oil spilled when the Deepwater Horizon exploded should have been ignored. Move along, nothing to see here!

    If you believe correlation equals causation I guess you will be the first to thank Obama for the doubling of the stock market since he took office. I won’t.

    #58
  59. Testmo

    He’d do it the same way our “evil” national socialist neighbors in S. America do it – prohibitively expensive subsidies on top of the prohibitively expensive subsidies we already give the industry with no tit for tat

    #59
  60. alilunderstanding

    I call BS …again against the GOP. Maybe they should ask their pal Bibi to stop all the loudtalking about hitting Iran. Peace

    #60
  61. PainAtThePump

    it’ll get to $8.00 before it gets to $2.50 under Barry’s comprehensive energy plan to destroy the American economy.

    #61
  62. PSI - Obama

    still waiting for my free campaign tire gauge.

    #62
  63. Algaebama

    can’t wait to fill ‘er up with Barry’s AlgaeTane.

    #63
  64. BarnicleBill

    Fact Checks are nothing more than political scams. The real question is: Are you better off today than you were 4 years ago? No. And if you say yes, then you’re one of the “1 percenters”.

    #64
  65. Byron Allen

    Your analysis is completely wrong. The OPEC leaders are not stupid and they see the US printing money and devaluing the dollar. For any commodity priced in dollars, the price is going to adjust upwards in proportion to the devaluation of our money. Of course the price can be $2.50 if we stop devaluing our money with this deficit spending.

    #65
  66. sack_o_cats

    Anyone who believes Newt (or anyone else) that $2.50/gallon gas can be achieved (without MASSIVE subsidies) is, quite frankly, an idiot. The reason that fuel prices keep going up is quite simple: the market is being DELIBERATELY manipulated.
    Since we have enough of an oversupply of refined products that we can *export* them… that the price of oil is at a high (but the oil companies say some of their refineries *can’t afford* to stay open, despite the record prices for their products)… and drilling is going great guns, *despite* the usual wailings about *overregulation*… we are being *played*.
    Those that scream for *more drilling* in order to ‘bring down our dependence on foreign oil’ or some such, NEVER mention that there is *no* obligation for those products to be sold here; and this is why the oversupply of refined products doesn’t result in lower prices here.

    Those refineries are being closed for the same reason; to propagate an artificial scarcity, and justify further price increases. Then, there is Wall Street… everyone’s favorite Whipping Boy. But, since they make money coming and going (and *create* their own crises in order to do so), the Beatings are *fully* justified.
    ==

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  67. Kurt

    What a tease. Bachman said she would get it down to $1.25. Even conservative pundits like Bill O’Reilly don’t understand why fuel costs are so high. Everybody and their mama said if we drill more prices will come down. There are more holes being put into the ground than ever. WE have so much supply we want to send ours to China by building a pipeline. Meanwhile prices are still going up for Americans. For a while we thought we had something with dry natural gas. The President endorsed building vehicles to run on natural gas. Now that the prices are so low many companies are abandoning drilling for the dry gas. Guess our vehicles will have to wait until to price comes back up. It’s hard for me to get upset with OPEC when WE are our own worst enemy pricing ourselves out of solutions we have right here in this country.

    #67
  68. Greg

    “Analysts have long said the president — regardless of political party — can have a limited impact on the price of gasoline…”
    ——–
    Except when Bush was in office then the increases was due to him and Dick taking care of their rich oil buddies.

    #68
  69. Observer

    “No Mo Years For B.O.”

    #69
  70. Observer

    Readers are taught by the anti-energy industry greenies here to believe that the oil companies and oil traders are responsible for the price of crude and they force the price higher by their speculation. Supply and demand are thus irrelevant.

    So would these same smart people please explain to others here why this same crowd is unable to exert these same powers and at least force the price of natural gas higher until it at least is roughly in line with its energy equivalent to crude, i.e. 6 to 1 or say about $17.83 per mcf rather than the current price of $2.35 per mcf.

    #70
  71. Willy

    Running $0.33 through an inflation calculator (the price of a gallon of gasoline in 1971) it comes out as $1.82.
    Take into consideration that that was leaded gas, non blended.
    Today you are getting blended with the lead removed and sulpher stripped out.
    The REAL ripoff is Diesel.

    #71
  72. colin james

    The USA has a large capacity to supply abundant cheap natural gas (methane) for vehicles.

    Retrofit kits, about US$ 1,500 bucks, are installed, consisting of a high
    presssure tank (rated to 5,000 psi), filled with compressed natural gas at 3,000 psi, and a change-over switch should the original fuel need to be used.
    Kits can be fitted to any vehicle.

    Other country’s are doing this big time, the leader being Brazil.
    You wont find any taxi using gasoline, when GNV is available.
    Its the difference between spending US$5 bucks for 200 miles (on compressed gas) or US$15 bucks.(on liquid gasoline.

    Its not rocket science.

    #72
  73. willye

    Are the pipelines coming out of Canada full now? No. The Keystone line from Cushing, OK to the Canadian border, even if it were completed today would not lower the price of gas. The part of the line from Cushing to the gulf coast refineries is under construction now.

    #73
  74. Former Subscriber

    This kind of superficial analysis sprinkled with liberal talking points is why we stopped our Chronicle subscription.

    #74