Since oil is denominated in dollars, it will have an impact. The world market has existed for some time and every time we announce more drilling and exploration it affects prices. Furthermore, the government can take steps to make domestic production more favorable than imported product. So, don't fool yourself into thing we may as well do nothing.
Good points, and as I said, we enjoy very low gas prices. Much like taxes I guess, even though they're low in comparison to the rest of the world, or history, we are pretty spoiled. Several good discussions lately based on what others are paying. Some say we are becoming a welfare nation, well, in this regard, we are a spoiled nation IMO. c
I noticed that too when fuel prices went up dramatically during Bush's second term. I kept thinking the truckers would protest or otherwise start raising holy hell....nothing. Not a peep out of the truckers. I think the trucking firms simply pass those fuel costs along in the form of transport costs their clients. Those clients simply pass the additional cost onto the consumer. The consumer just stupidly pays the increased prices and doesn't necessarily attribute them to fuel or anything else specific.
Ugg...I absolutely hate this but its something I have to admit. I actually agree with the president on his policies about not letting us drill for oil on our own soil right now. Its pretty obvious that oil consumption is getting larger year after year around the world and it makes oil more expensive, but oil isnt going to be around forever. Obviously the president is lying because he cant tell the truth about why he really doesnt want us drilling for oil. And thats this simple truth. Better to use the OTHER guys oil while its still cheap, and then when they run out and have nothing left, we still have trillions of barrels of shale oil. Think of it like 2 guys on a desert Island and both have 5 orange each. I'm going to buy the other guys oranges for $2 each until he is out of oranges. Then when he wants an orange, I'm going to charge $50 each. Pretty smart really.
Gas prices were $1.00 per gallon or thereabouts in the late 90s early 00s. I can't see how a quadrupling in a decade makes this nation "spoiled". As far as taxes go, that's another non-starter. Taxes don't begin and end at the Federal and State level, there are so many miscellaneous taxes in everything that we purchase, that the total tax bite is quite significant (at all income levels).
US consumption is down dramatically over the past 4 years. I'd reckon Europe must be likewise. Perhaps the consumption in China, India, etc has filled in that gap, I have no idea and there is so much conflicting data out there, that it's hard to draw any concrete conclusions.
http://www.msnbc.msn.com/id/23903144/ns/business-oil_and_energy/t/truckers-protest-high-fuel-prices/ The independent truck drivers took it up the arse. There was plenty of discussion of this back in 2008.
There isnt much Obama can do to drive down oil prices, but what i find funny is that his response has been "if you dont like oil prices eliminate the subsidies" as if increasing the tax burden is going to lower the cost of oil. Im actually in favour of eliminating oil subsidies(as i want a fair tax code) but i find it funny that is what obamas response is, as if punishing oil companies is going to bring the cost down...... Canada soaks the oil companies with taxes, and the cost of gas in Canada is a dollar more per gallon than the U.S. even though Canada has all the oil, so americans better be ready to pay for it if we get Obamas way and start hammering the oil companies with new taxes......
Hi Max. You say you're for eliminating the subsidies, as I am. And you say Obama is wanting to hammer the oil companies with new taxes. I think that the oil companies can get by with those subsidies, and simply pay taxes that might keep them on a level playing field with other industries. My corporate taxes are maybe going down. My gas taxes are holding steady. And, our U.S. gas prices are still pretty cheap. I just don't see a real issue here. Yes, it's too bad that the U.S. citizens who have been spoiled with low gas prices are going to have to pay a bit more. I think we're all getting to a global environment, no matter what, and the leveling of prices and wages will take place sooner than later. c