The Lame Duck Obama and the Oil Fiasco
By: Dr. Phil Taverna
Obama is just like Carter. During Carter’s failed policy years: We had long lines for gas on even and odd days. And remember we still had more oil and gas then any country in the world. But the experts told us we would run out of oil by the year 2000. These are probably the same Harvard graduates that told us the world would melt caused by global warming by the year 2020.
If Obama can’t get oil and gas under control by Election Day he is a lame duck president. And Bill Maher can pledge another million to Obama and he mind as well throw his money away.
Before we get to Obama’s failed energy policies, a new problem has surfaced. It appears that we have a surplus of oil and gas. Keep in mind in the Northeast we had a mild winter and as the price of heating oil goes up more people are switching to other means of heating their homes and businesses. So one way or the other we will screw the oil companies. You have to wonder why the liberals have been so slow to convert to natural gas vehicles. Battery operated cars still use fossil fuel and gasoline. Why not use natural gas. It is plentiful and it already exists in almost all parts of the country. And it is cheap!
But Lou Dobbs on O’Reilly broke an interesting story. Because we have a surplus of gasoline, the oil products are being shipped from the United States to other countries. At first I said tell me it ain’t so.
But as more folks are paraded in front of the camera, they don’t seem to be denying the fact that prices in America are going up while we have plenty of gasoline. So the law of supply and demand that we have been sold for years just went out the window.
Now they also claim that the banks made a great deal of money in oil from the stimulus money. Because of all the money they made, they were able to pay back the stimulus money in a short time and have big smiles on their faces. This is at a time when most Americans lost almost all of their retirement value socked away in their 401 k accounts.
And I have always said check all the politicians, where do they have their money invested. They finally got around to investigating insider trading, what about investing in oil companies while passing energy policies that will cause the price of oil to go up. That’s sounds way better then insider trading. It is probably more profitable as well. And this is at a time when the taxpayer is paying for heating oil for people who can’t afford the oil. That just doesn’t make sense!
So why would the oil company raise the price of oil products in this country while they sell our oil products to other countries? Also keep in mind we were always sold the crap that gas prices went up because we couldn’t refine oil fast enough to meet the demand. Now we are shipping refined American products to other countries. So what happened to the shortage? Last time I checked there have not been any new refineries built in this country for a long time. Actually because of the cost of crude, they are actually reducing production… That doesn’t make any sense. Why not lower the price of gasoline and make more money selling gas to Americans! My guess is they are now refining the oil somewhere else where it is cheaper to do so and less regulations.
You can hardly blame the oil company they just want to make money. And Obama has screwed the oil industry so much in the last three years; they have to make more money someplace. But why do the Americans have to pay? It is our oil!
So what’s the problem and how do we fix it. The problem is that the gas prices went up when they should have gone down. Liberals like Obama like when oil prices go up, because they don’t want the people to use those evil fossil fuels. But of course most of us do not have a choice. Oil is probably the biggest industry in the world. And it is the most taxed industry in the world. But the pundits claim that the price you pay in America is now set by the global economy. So they claim that eventually the gas prices will come down as we pour more American oil products into the global markets.
Wasn’t it Billy Bob Clinton that entered us into this global fiasco? So obviously this is all a sham. A few months ago Idiot Obama dumped our strategic oil into the global market. Now the American Taxpayer will have to pay a higher price to replace that oil. President Bush had the reserve pretty much at full. Now the American taxpayer will have to compete not only globally but locally while the US government tries to replenish the strategic oil supply. The Obama dumping of the strategic oil had no lasting effect on the price of oil. I am sure someone like Jesse Jackson made money on the deal, but at the end of the day you get to pay more for oil… twice!
So O’Reilly wants an export tax on the American oil products leaving the country. What if we buy oil from Canada and refine it and send it to China will it still apply?
So the solution is simple. You need a tax, but it needs to be placed in the right place. Let’s make believe that you are the CEO of all the oil companies. You have oil rights and leases all around the world. You own the oil rights. So what is going to keep you from jacking up the price of oil in the commodities market every time you want to make more money? Absolutely nothing!
You already own the refineries and the oil, so every time the price goes up you make more money and the overhead remains the same. So you would have to be an idiot if you did not pay someone to drive up the price of oil in the commodity market. And the idiot liberals will applaud you! And if you are the CEO it makes sense that the more the company makes, the more you make. So you would be a fool if you did not raise the price of oil.
My question is how long has the shipping of American oil products out of the country been going on? Was it going on when Carter was president? My guess is it was always going on. Why waste a tanker going back empty when you can fill it with refined products!
Obama likes to tax people. Why not tax the oil companies on a sliding scale. Now that would be a progressive tax! If the Oil Companies are exporting a drop of American products out of the country, a tax on American oil would apply on all oil proportionate to the rate in the commodity markets.
So let’s say the tax on oil is $10 dollars a barrel right now. And let’s say the price of oil should be about $60 dollars a barrel. As the price of oil in the commodity market goes up, then the tax goes up proportionately. I will bet you that the oil company will make absolutely sure that the price of oil in the commodity market will not go up. They have the power to bet against it!
The other caveat should be that this money must be filtered directly to the gas pump and heating fuel truck. So as the price of oil goes up, the tax revenue goes up and the gas tax automatically goes down immediately. Problem with liberals is that tax money never trickles down to all the taxpayers, only to the folks who will vote for liberals. And all Americans buy gas and heating oil, one way or the other.
So the oil companies will have to make the decision. Do they want to export American oil products and gouge the taxpayer at the pump? If they do gouge the taxpayer, the taxes on the American oil go up and the taxpayer gets an immediate refund at the pump.
Fortunately this can’t happen while Obama is in office. So the price of gas and heating oil will render Obama a Lame Duck President. When he boasts of having another 5 years to be president, he may want to get his affairs and pardons in order, because his lame duck session is about to end in 2013 on January 20th.
If you are paying $5 dollars at the pump for a gallon of gasoline, all the free contraceptives in the world will not make you feel good enough about voting for a loser.
If Obama cared about you and your family, he would be working with the oil companies to lower gas prices rather then flying around the world collecting campaign contributions while he spends billions of tax dollars. In three years, Obama and his family have spent on traveling more than any president in American history. And as far as anyone can tell, he has made matters worse! The country is being driven in the wrong direction by the liberals and Obama! It is almost time for the Lame Duck to fly back to Chicago.
Dr. Phil Taverna owns and operates his own website.