Our powerful Congressman talks so little about his district these days that it’s kind of refreshing to see him Facebook about high gas prices:
There are nearly 40 comments on the post with people -some of whom are unemployed- complaining about how the cost of gasoline is forcing them to cutback, eliminate trips and harming their job prospects. At least one businessman says its affecting his bottom line as well.
So what’s causing high gas prices? I feel like we’ve seen this movie before. In 2008, supply wasn’t much of a problem, and we didn’t even have a Libyan war to worry about. Demand was blamed for the high prices then (It’s China! the pundits shouted), but many in the know blamed shadowy energy speculators for the high prices. What else could explain the unnatural spike to $149 per barrel in July 2008 followed by the drop to $35 per barrel in December 0f 2008, just six months later? Did the supply/demand equation change that much in just six months?
I think we’re seeing the same thing again, especially as outlets like Bloomberg report that energy speculation is at an all-time high as hedge funds and other investors pour billions into the energy market and expect a big return. That, coupled with a regulatory commission that still doesn’t have the power or funding to regulate speculators, could explain in part why the folks in McKeon’s facebook circle are paying over $4.20 a gallon.
The Drill Here Drill Now crowd’s solution to high gas prices doesn’t make much sense to me since oil, whether its drilled out of the ground in Saudi Arabia or off the coast of Ventura, gets sold on an open market and goes just about anywhere.
One thing is for certain: every time the gas price ticks up $0.50, Santa Clarita becomes a little less attractive to home buyers who want to live in the SCV but work in LA. We need more high quality local jobs like…now.
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Gas prices are tied to crude prices.
Crude prices are tied to the world market.
Don’t let the politicians fool you into thinking more production in the US will keep gas prices lower here. It will only increase the worldwide supply which would then maybe marginally reduce prices. What more domestic production will do is help out with domestic jobs and the balance of trade.
Do we really think that if the realized price (net of transportation) in the US is less than a producer selling that crude overseas, that that US crude producer would only sell in the US to keep our prices down?
NO WAY!
If you want to cut down on the volitility of the market, one could argue that uncovered futures and options trades should not be allowed.
I praise globally conscious, environmentally-minded people like Petz’s father for his recent purchase of a Chevy Volt. Perhaps Petz’s father’s son can follow his shining example?
Petz could grow his hair hippy style and push around a Prius lol
“The Drill Here Drill Now crowd’s solution to high gas prices doesn’t make much sense to me since oil, whether its drilled out of the ground in Saudi Arabia or off the coast of Ventura, gets sold on an open market and goes just about anywhere.”
How drilling here drilling now would effect prices depends on how much we are able to produce. Additionally, since the price is the same, it would be nice to see as many of those dollars that we currently send to S.A. stay here with U.S. companies. But don’t worry, it will never happen.
Drilling Here, Drilling Now will have a positive impact on prices. The demand for oil is very inelastic. Small changes in supply and/or demand have a much bigger impact on price than most other things. Drilling domestically and increasing the overall world supply can only be a good thing.
Madder thah hell at the pseudo conservatives who have embraced Donald Trump. This man is the Jim Jones of the 2012 election cycle and you are all drinking the poisoned Kool Aid. What Tea Party event was he ever at, while we were supporting the embattled troops prior to the surge he was calling for Pelosi to impeach President Bush. The man is charalatan , lying deceiving coneiving hypocrite and Petz is sickened by those who embrace the flavor of the month.
Don’t worry Petz! Trump is just Fred Thompson part II! When he has to spend his days from 6 am to 10 pm riding around on a bus in Iowa to events where six people show up, that campaign will last about four days.
Donald Trump’s ramblings make Charlie Sheen look like Mohandas Ghandi!
Have you heard Trump mention the Constiution, the Bill of Rights, the Founders-anything related to the principles of convervatism?
Doesn’t matter he is happy with the discounted electricity from the power company and is thinking about heating the home with electricity at the discounted rate. AC is cheaper in the summer too.
My kid, in his skater/ stoner hat, who is in DC with his hippie marxist charter school, shook hands with Mr. McKeon today!
Hope he washed his hands afterward!