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Gas Prices To Reach Record Highs

August 30, 2012 by  

Gas Prices To Reach Record Highs

According to estimates from AAA, an explosion at a Venezualen oil refinery and the effects of Hurricane Isaac are driving the price of American fuel through the roof leading up to Labor Day.

On Wednesday, gas prices shot up an average of 5 cents per gallon throughout the Nation. At a national average of $3.80 in the reading released Wednesday, gas is at its highest level since early May. Wednesday’s was the biggest one-day spike in prices since February 2011, when conflict in Libya threatened oil supplies.

Some analysts expect gas prices to reach national averages of $4 per gallon by the end of September, which could become a key topic in the upcoming Presidential debates. The first debate is scheduled to take place on Oct. 3.

There is some speculation that President Barack Obama will release supplies of the Nation’s Strategic Petroleum Reserves in order to ease political liability for the high gas prices.

“Given this administration’s belligerent rhetoric against the oil industry, it’s going to be very easy for Romney to pin the blame on Obama,” Stephen Schork, president of Schork Group Inc., told Bloomberg. “The White House will be on the defensive. It makes an SPR release likely sooner rather than later.”

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.

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  • Harold Olsen

    I’m sure Obama will blame Bush and Cheney for these high gasoline prices. They get blamed for everything else. Our local public access station occasionally runs anti-Republican shows that are mostly andi-Bush and Cheney shows. Last year, one of the shows they ran actually blamed Bush and Cheney for the gasoline shortage of the 70′s when Carter was in office. Yep! It was all Bush and Cheney’s fault!

    • eddie47d

      I noticed you left out the terrible gas prices and long lines under the Nixon Administration. You only want to see and hear evil when it is convienient for you Harold. There isn’t much we can do to stop a hurricane from barrelling down on the oil refineries along the coast. Maybe you have a special magic wand to control those events and the price of oil.Considering we are drilling all over this country and there is actually a glut of oil in the Midwest. We’ve seen this play before and oil prices are controlled by the world markets not Obama or Bush or even Romney. At least Obama has worked tirelessly to increase fuel efficiency which will save the average person many dollars.

      • JimH

        Hi Eddie, We may get more miles per gallon, but the more dollars per gallon will make up for it. We will probably be lucky to break even.
        That is if you can afford to buy a new (high mileage) car. Then the car payment will eat that, or more, up.
        Higher insurance for a new car.
        Let’s just try to keep the fuel prices down.

    • jopa

      Olsen;It is a fact that a barrel of oil had gone from 20 to 80+ dollars during the Bush administration.So if someone were to blame Dick Chaney and Tator Bush they would be correct.

      • Patriot1776

        jopa, you must get your information from the obama administration. Oil prices did rise in 2005, during the Bush administration, coinciding with Katrina and the destruction of the oil refineries, which is a quite a stretch to attribute to Bush. The average annual price was $58/barrel. Today, the average price is $93/barrel under the emporer. (Source: )

    • Thinking About

      Who do you blame for the price of gas in July 2008 when it was $4.12 average? Did you blame Bush then you can blame Obama this time but who do you blame for the price of oil per barrel going up. Oh, forgot, must be Obama. No president in the past, present or future is going to control oil prices. This is why we do not need the Keystone pipeline to go to the gulf coast which will put the oil in those pipelines on the world market and subject to the same price of products of the world market.

      • Mark Pepin

        Yes, Presidents can and do sway the price of oil in America by setting the tone and agenda for the country. When we had the oil embargo back in the 70′s, we did some political maneuvering with the Arab countries and tightened our belt here at home, and the prices eventually came down. There are a lot of things that we could do to immediately effect the price of oil, but Obama is not interested in keeping oil prices low, because his main concern is to fundamentally change America into a socialist style country. This will be accomplished by completely destroying the financial network that we have, and replacing it with something that will perpetuate the power center in the seat of the President.

      • Chester

        Mark, if you remember right, those prices never did get back to pre embargo days, even though the price of crude did get back pretty close to that level. I think the last gas I bought for less than a dollar a gallon would have been in about 77. Funny thing is, oil was still selling for less than ten dollars a barrel when gas was at a dollar and a quarter a gallon.

  • Vigilant

    It has always irritated me to no end that events affecting the FUTURE oil supply have an immediate influence on gas prices.

    The Venezuelan fire began on Saturday, Isaac is wreaking its havoc now. That means that no real crimp in supplies of refined crude could possibly affect current markets for some weeks. Yet prices rise NOW. Unconscionable!

  • Vigilant

    “There is some speculation that President Barack Obama will release supplies of the Nation’s Strategic Petroleum Reserves in order to ease political liability for the high gas prices.”

    Tapping the reserves for purely political reasons is also unconscionable. They are NOT intended to be used for short term price relief.

    • Rick

      A better plan pull the plug on the EPA and build more and newer refineries so that we can refine our own oil on a scale where the demand can be met.

      • Chester

        Rick, the refinery problem isn’t so much EPA as BIG OIL. Why have five refineries working at fifty per cent capacity and selling gas to retail at two dollars a gallon when you can have three working at 80 per cent capacity and selling gas to retail at three dollars a gallon? Oh, don’t worry if we have to shut one down, as the other two can pick up the difference, well, them and the reduction in usage when the price goes from three to three and a half. Might want to ask why so many refineries in Kansas, that were built to handle the heavy crude, were bought up and closed down. I am sure you will find some interesting reading there.

      • Vicki

        So stop complaining about big oil and get out there and buy those refineries in Kansas and get the price of gasoline down.

        Of course you will (re)discover the meaning of crony in crony capitalism as you try to navigate your way thru the bureaucracy that is called government.

  • Buttercup

    The President of Shell told us gas would reach $5 a gallon….they tell us what THEY are going to do & we seem so surprised.

  • Henry Albert Limburg

    The big oil corps are lieing to to the American People and there is no reason for gas to be as high as it is right now .There is a lot of oil wells that are caped off and I know of a few in Tennessee.The big oil Corps just want more money to put into their pokets .Its all about money and greed. The Rich has always been greedy and gredyness is killing this Nation .

    • Vicki

      Stop complaining and go buy those capped wells and start a refinery and make gasoline. Show obama that you can build it.

  • Sirian

    With the problems that plague Obummer’s campaign is it out of reason to think that he may, just may open up the Keystone Pipeline as gas prices go up? This in effect has been floating in my mind since he stopped it’s construction a few months back. By opening the Keystone back up now (how convenient) he could then claim that he is creating “millions of jobs” as well as providing a sound solution to the increase in gas prices. Get it? Who knows, may happen, may not. But don’t be surprised if it does. Don’t forget the moratorium on drilling in the gulf either. That has been forgotten about by most has it not? Yes, $5/gal gas prices will for sure have a major effect on the election – food prices will soar too. But keep in mind, he has a very large bag of tricks yet played, just wait and see.

    • Thinking About

      How do you think the price of oil products will go lower with the Keystone pipeline going to the gulf coast and then shipped through out the world, it will still be world prices. Put the pipe line to the refineries on the border of Canada and USA to keep the products in the US.

      • eddie47d


      • Sirian

        Thinking About,
        You missed the point – it would obviously have no effect on gas prices but it would possibly shift several “undecided” voters minds just enough to draw their vote. Get it? “Build it and they will come.” Sound familiar?

      • Rick

        What refineries along the border? the only refineries in this country are along the gulf and in Ca. and they are all over 35 yearsw old. There hasn’t been a new one built or rebuilt since the early 70′s thanks to the EPA and their nonsense. they hjeed to totally limited or shut down for the good of the nation.

      • Sirian

        Uh, you’re way off base when it comes to all the refineries are along the gulf and in California – way off. HA, we have several here in Oklahoma. Ponca City, Tulsa, Ardmore, Wynnewood, etc. Various other oil & gas manufacturers are located in both Oklahoma City and Bartlesville. So, since when did they move us – Oklahoma – along the gulf coast? If that happened, Gee, I didn’t feel a thing!! WHERE’S THE BEACH?? Get a grip. . .

    • JimH

      Between the drought and fuel prices, you may want to stock up on some food at today’s prices.
      If you have some spare cash.
      Just like percieved oil problems boosting the price of gas before the impact really hits, if the food industry works the same, the drought(with added fuel price) will be the excuse(or reason) for higher food prices.

  • Henry Albert Limburg

    If the American People would unite and stop buying Gas for about 2 or 3 days you would see a big change in the Gas prices .

  • Mike the American

    If anyone thinks that gas prices are high now, just wait & see how much we’ll all be paying when we attack Iran after the elections are over on Israel’s behalf.

    • Jimmy the Greek

      Mike you got that right ! We should be making friends with the Persians and throw all the Semitic’s under the bus ! They have been nothing but a pain in the @$s for us israle being the worst .

  • http://yahoo Charles Arthur Williams

    Like Henry I know of many capped wells in the Gulf. Reagan pulled us out of the Gulf in 84 and capped all the wells for strategic reserves. The problem with that is they are leaking now. We need to use some of those or the won’t be useable soon.
    No one believes the pipeline would cause millions of jobs, and with the Aquafir below were they want to put it could be a disaster. 2 years ago a Canadian pipeline broke and dropped thousands of barrels of tar sands in the Kalamazoo river in Mich. Its still not completely cleaned up. Any oil drilled or brought from Canada will be sold on the world market to the highest bidder.
    BTW Do ya’ll know what the U.S. leading export was in 2011?
    Petroleum based fuels !

    • The Christian American

      Today, oil serves two purpose. One as a source of energy and two as the backer of our paper dollars. OPEC isn’t regulating the price of oil. The American soverign dollar is. As the government prints counterfeit dollars, the value of the dollar goes down. not only oil goes up, everything you purchase goes up.

  • JimH

    Wed gas prices jumped on average 5 cents per gal. to average $3.80 per gal.
    Man, I would sure like to be average.
    40 miles west of Chicago it jumped 20 cents to $4.25 per gal.
    I’m sure in Chicago it’s much higher.
    Sometimes it pays to be “just” average.

  • libertarian58

    Why is it that if some sheikh’s dog gets run over, oil prices immediately soar to record highs, but when the “calamity” is over, it takes forever for the prices to go back down? This is what you get when you have a global cartel monopoly that operates without any of the constraints that actual competition in the market would provide. I hear all the time that oil prices are driven by “supply and demand” but I see no evidence of this in reality. . .

    • Vicki

      Libertarian58 writes:
      “This is what you get when you have a global cartel monopoly that operates without any of the constraints that actual competition in the market would provide. I hear all the time that oil prices are driven by “supply and demand” but I see no evidence of this in reality.”

      You say that you see no evidence of supply/demand in reality right after describing exactly how it works? Why?

      Global monopoly reduces supply. Demand unchanged. Value goes up.

      Also remember the supply/demand equation works on EVERYTHING. Including the paper we use for money. Fed Reserve (a private bank) increases the supply of money. The demand remains unchanged. The value goes down. (I.E. it takes more paper dollars to buy that gallon of gas).

  • chuckb

    look no further than the market, speculators driving the price, everytime the wind changes it becomes a crises and the price of oil goes up. they have a ready made excuse for all price increases. it starts with oil companies who place the oil on the market, then we have the traders, short selling causes swings in the price
    we can thank congress for allowing the oil companies to create a cartel, i always blamed bush for not making an attempt to counter the congress on their deregulation policy of the oil companies, however, i think bush was one of our most honest presidents, there was no scandals in his term of office, he did seem oblivious when the price of gas rose.…/slocum_oilgas.pdf

    we need to open up the drilling in this country and regulate the oil companies, we need to put competition in the oil business and stay away from world marketing.

    • Chester

      Chuck, you hit the nail on the head when you blamed speculators for a lot of our oil problems. Up until about the time of the Arab oil embargo, speculation on petroleum products was limited to about twenty per cent of all oil used, Now, less than twenty per cent is closed to speculation. Tell ME who is making money hand over fist. Yeah, the big oil companies are making some, but the guy who bets that oil is going to go up fifty cents a barrel and buys the future rights to a couple million barrels, then turns around and sells those rights to someone who thinks it will be going up a dollar. Fifty cents a barrel profit doesn’t sound like much, but on two million barrels, he just made a cool million dollars and never got his little pink fingers dirty at all.

  • The Christian American

    Gas prices may be higher but the availabilty of oil is not the reason. All those trillions of counterfeit dollars floating around are simply inflating the dollar, reducing it’s buying power. Regardless of what, when you have lots more of it, it’s value goes down The dollar is no exception.. When the government prints counterfeit dollars, they pay their bills with dollars at todays value, It takes a little time for the market to know that they’re their. But when it does, prices on everything goes up. It’s a form of tax perpetrated on the people. The government got what it wants and your dollars are worth less, leading to worthless. Gas prices are established on three exchanges. the NYSE, one in Texas and one in Norway. The price is an aggregate of the three. Enter Iran. The Iranians want to establish an exchange around EU’s. If oil is bought and sold on that exchange, the dollar will collapse. As it is the US has a gun to the heads of oil producers. They literaly have to trade in dollars making their oil the backer of the paper dollar. We don’t have a backer at home. That’s why Iran, Iraq, Syria, Libya, Russia, Brazil and others are on the black list. Those are terrorist countries because they won’t bend to US terrorism.

    • Jimmy the Greek

      Right on that one !

  • Jack

    You guys miss the two real causes for the high gas prices – deregulation that allowed the
    speculators to take over the oil futures market and drive the price of oil up and the rip off of the Amerian people by the oil industry.

    When the nationwide cost of gasoline peaked under Bush in the summer of 2008 at
    $4.12 a gallon the price of oil was about $145.00 barrel. Now it is around $3.80 a gallon while the price of a barrel of oil is only around the mid $90s. Why does gasoline cost almost 93% of what it did in the summer of 2008 when the price of oil is only about 65% of what it was then?

    If we weren’t being ripped off it should cost just a little bit more than $3.32 a gallon based upon what gasoline cost in 2008 vs the price for a barrel of oil then versus now.

    The speculators keep the price of oil up. In 2008 experts who were not bought and paid for by the oil industry were saying that speculation in oil futures was driving up the price by as much as 50%. After the economy and the oil futures speculators tanked in 2008 the
    market price of oil dropped like a ton of bricks down to the $20.00 dollar range and
    gasoline dropped to well under $3.00 a gallon by January 2009..

    The law prohibiting speculators was never reinstated and now they are back and Amerians are being ripped off big time for billions of dollars they badly need for other things.

    Almost 100% of the Republicans in Congress, joined by a few Demorats have fought to
    prevent the end of speculation in the oil futures market (ie keep deregulation) as well as
    to mask the real reason that gasoline prices are so high.

    Bush and the Republiccans are responsible for high gas prices because they supported andd still do support deregulation of he oil futures market as well as the speculators.

    Obama is responsible because he did not do enough to educate the public about what weere the causes for what had been happening to them when he tried to get Congress to clamp down on the speculators and he didn’t push to go back to the way it used to be where speculators were basically barred from the oil futures market.

    • Centurion

      Its not the speculators. Its the Federal Reserve. Think about it, when they “printed” another $15 Trillion in rescue funds for their buddies, they devalued the purchasing power of every dollar in circulation.

  • Larry H

    Obama or who ever can open Keystone or empty the Oil Reserves and we still would not be able to effect Gasoline prices as were refining oil and selling gasoline over seas plus we do not have enough refineries operating to flood the market with all the oil were receiving an producing.The Oil companies in fact are still closing refineries here so they can make higher profit by having short supplies. I thought all you economic experts knew all this.

  • JimH

    One other factor is, when the price was to high, sales dropped and suply grew. to much suply for demand, price dropped.
    Now someone figured out we can export gasoline and sell it at world market price.
    We import crude, but export a finished product.

  • FedUp!

    Thinking about: Gas was over $4 in 2008? Are you sure about that? You might want to think more about that!

  • Palin16

    In the 2016 Obama movie, they show right after the gulf oil spill Obama ordered alll the US rigs in the gulf to close down. Next he negotiated a deal with Hugo Chavez down in Venezuela to give them the oil rights. It even has a nice photo of Obama shaking hands with Chavez. I hate to think what a second Obama term would do to us.

  • Centurion

    Here’s a little exercise for you. In 1964 you could buy a gallon of gas for $0.20. Two thin dimes! 1964 dimes were made of 90% silver and were worth $0.10 each. Today, at 4:24 PM a 1964 dime is worth $2.20 considering only the melt value of its silver. Two of them are worth $4.40. That’s more than enough to buy a gallon of gas in most of the country and certainly on average. Effectively, in terms of commodity pricing, the cost of gas is slightly less than in 1964.

    In fact, the value of the money used to purchase it has depreciated. Blame whatever presidents you want, and they certainly affect short term changes, but the real reason that the apparent cost of gas has gone up is that the Federal Reserve (which is neither) has printed a lot of money, making every dollar worth less.

    All of the rhetoric and blame is a distraction designed to keep you see that you are being robbed blind.


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