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How Do We Turn Around Skyrocketing Oil Prices?

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Nick Loris of the Heritage Foundation to discuss smart policy solutions to address high oil and gas prices. Then Pejman Yousefzadeh talks about Barack Obama’s recent decision on Gitmo detainees.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

Price of Light Crude on NYMEX
AAA: Daily Fuel Gauge Report
Not the Time to Tap the Strategic Petroleum Reserve
What To Do About High Oil Prices
The Way We Drive Now
Obama reverses stance on Gitmo, military tribunals
“The Least Worst Place”

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COMMENTS

  • APA Guy

    1. The recent Middle East events highlight the need for significant increases in domestic production and supply. If demand was the only factor driving prices upward, then speculators wouldn’t have bid up prices once the turmoil began.

    We are forever holding our collective breath that some skirmish doesn’t break out in the Middle East due to the fact that we are so reliant on their oil. It’s past time to break that cycle of dependancy.

    2. Oil is a worldwide commodity priced in dollars. The dollar is tragically weak due to the deficits we have been running. It doesn’t take a genius to recognize that a weak dollar = inflated oil prices.

    One of the reasons oil and gas prices were so tame during the economic expansion of the 90s was the fact that our dollar was strong. Therefore, it took less dollars to purchase a barrel of oil.

    We don’t need to “cut spending”. We need a BALANCED BUDGET. Sell it that way to the American public, which has some understanding of the concept, and you’ll win their support in a huge way. Sell “budget cuts”, and all they’ll see or hear is cutting Medicare/Medicaid/SS/education/etc.

    • gekster

      but if you don’t cut the spending, then you will have to raise taxes.
      How much more in taxes do you want to pay.
      How much extra do you send into the government so they don’t have to cut spending.

  • APA Guy

    1. The recent Middle East events highlight the need for significant increases in domestic production and supply. If demand was the only factor driving prices upward, then speculators wouldn’t have bid up prices once the turmoil began.

    We are forever holding our collective breath that some skirmish doesn’t break out in the Middle East due to the fact that we are so reliant on their oil. It’s past time to break that cycle of dependancy.

    2. Oil is a worldwide commodity priced in dollars. The dollar is tragically weak due to the deficits we have been running. It doesn’t take a genius to recognize that a weak dollar = inflated oil prices.

    One of the reasons oil and gas prices were so tame during the economic expansion of the 90s was the fact that our dollar was strong. Therefore, it took less dollars to purchase a barrel of oil.

    We don’t need to “cut spending”. We need a BALANCED BUDGET. Sell it that way to the American public, which has some understanding of the concept, and you’ll win their support in a huge way. Sell “budget cuts”, and all they’ll see or hear is cutting Medicare/Medicaid/SS/education/etc.

  • http://www.liberallyconservative.com Liberally Conservative

    Cut spending, lower corporate taxes, cut entitlements, reform Social Security (Privatize) and start a full-throttle program to use all American resources and ingenuity to tap our energy from within.

    And..I’m not a big Donald Trump fan but as he has suggested – start exploiting the Middle East and other oil producing countries we protect. – i.e. Iraq should start selling us some oil at moderate prices to pay off their debt to the US. Does Saudi Arabia want our protection? Pay the piper.

  • seisner01

    It?s time to let the dogs out! Let?s take a lesson from our own history ?how Reagan won the Cold War. Essentially, it was an economic victory as opposed to a military or ideological victory. We ran the Soviet economic engine into the ground.

    Now, we are faced with a myriad of enemies whose sole source of economic and political power is that they happen to live above huge oil reserves. The Soviets had technology, military might, a solid manufacturing infrastructure, abundant resource and a wellspring of intellectual capabilities that rivaled and in some areas exceeded our own, but the configuration of their economic engine doomed them to failure against a Capitalist machine ? it inherently just could not compete in a flat-out competition. Reagan proved this to them and, seeing the light of reason, they backed down to avoid all-out disaster.

    Our current crop of enemies have far less to work with ?, their infrastructure, their military capabilities, their ability to cling to power are all dependent on one simple factor ? their control of vast oil reserves. So it would seem obvious even to the casual student of history that this one source of power and control is also their Achilles Heel. If we are to prevail and defeat them, this is where they are most vulnerable.

    Traditionally, they have wielded power on the international stage by controlling the supply of oil as we (the West) have come to them ?hat in hand? with gifts of technology, food, infrastructure projects, cash, ? you name it, in order to ?persuade? them to keep the pumps open. As anyone who drives a car can see, this philosophy is about to explode in our faces ? unless we react quickly. How do we accomplish this?

    It seems that the obvious and easiest way to attack the source of our enemy?s is, simply, to flood the world marketplace with oil and other energy sources!!! The United States alone (not even counting the vast resources of western countries like Canada) sits on top of HUGE sources of energy ? billions and billions of barrels of oil, trillions of cubic feet of natural gas, billions of tons of coal ? unknown billions of barrels of off-shore oil ? According to the mean average estimate of the U.S. Geological Survey, there are at least 10.3 billion barrels of oil in ANWR (Arctic National Wildlife Refuge. Most of this oil can be tapped through a drilling imprint of just 2,000 acres, or .01%, of the reserve area. In addition, there is an estimated 35 trillion cubic feet of natural gas in ANWR alone. yet for a variety of reasons, we have not taken advantage of this ? political reasons disguised as ?concerns? for the environment have obscured the real challenges with which we have to deal with. IT?S TIME TO LET THE DOGS OUT!!!.

    What does that mean??? Let?s let the energy companies loose ? let?s help them, subsidize them, partner with them, support the quest for cheap oil sources, help them realize huge profits and tax them, let?s take off the gloves ? LET?S FLOOD THE WORLD MARKETS WITH OIL AND OTHER ENERGY SOURCES ? let?s break our Middle East enemy?s economically by taking away the one advantage they have!!!! Let?s make their oil worth a fraction of what is worth today to the point where it is they who must come to us ?hat in hand?.

    A ?small? peripheral benefit would be, through increased taxes on what would be vast profits and government/industry partnerships, would be to reduce or perhaps even eliminate our national debt! Another lesson from history can be seen from the ?Dot Com? era. Did the vast surpluses of money that flowed into our government coffers in the 90?s come from Bill Clinton?s economic brilliance, or was it the natural result of taxes being levied on vast new sources of income? Does anyone remember how low unemployment was during that time as well?

    It seems that letting the ?energy dogs? loose might just prove to be our onlysalvation.

    • The_Gadfly
  • lgbpop

    In September 2008, House Democrats were worried about maintaining their two-year-old grip on the House and decided to remove the ban on new off-shore drilling leases as gas climbed over $3 a gallon. By Election Day gas had dropped to around $2 per gallon and by February 2009 I was buying it for $1.78 a gallon locally (I found a gas receipt in my car Monday to prove it).

    One of Obama’s first actions as president on February 11, 2009 was to reinstate the ban, and gas has been climbing again ever since. Clearly, just the possibility of increased supply domestically causes the speculators (who seem to have undue influence on the price of crude) to bid the price of crude lower. To those critics who shreik “there won’t be any production for ten years!” I say, “so what?” There was no production last time either, just a change in perception of future supply.

    Obama’s suggestion to open the emergency reserve is naive, short-term and dangerous. If, in fact, there is a need for a strategic oil reserve we should keep it for a real emergency. We have no shortage of gas on the market; what we have is artificially-restricted domestic supply of crude, and the speculators bid accordingly.

    All that needs to be done is to rescind that ban. Permanently. Period.

  • Marcus_Traianus

    NT

  • izoneguy

    Get rid of democrats once and for all…..

    The leftists in America can move to Europe or Libya.

  • veritaseequitas

    It is beyond irresponsible of the BOgus administration to refuse permits for the oil companies to drill in our country, and it is a huge embarrassment for the American people to have to kiss Arab a$$ in order to run their automobiles. I just spent over $47 to put less than 14 gallons of gas in my car. I am very fortunate I do not have a long commute to work. I wonder how long it will be before the choice is between having gas in my car to get to work and not eating. I am sure that is already a very real dilemna for some people in this country.
    BO’s policies and poor decisions are making his re-election in 2012 look less and less likely. It makes me wonder just what his gangstas have up their sleeves to get him re-elected?

  • earlgrey

    for Obama’s re-election. Great news.

    How does the economy recover with high oil prices like this?

    • earlgrey

      I don’t want him re-elected.