Posts tagged “gas prices”
The Usual Suspects Summer is approaching, and that typically means rising gas prices. And when gas prices rise, our political leaders generally start looking around for someone to blame. Over the past few years it has become a regular ritual that as gas prices rise, the CEOs of our biggest oil companies will be marched to Washington D.C. for a public shaming that involves Congress grilling them on why they are doing such horrible things to the American public. Inevitably, we will spend tax dollars investigating the matter. And as was the case after Hurricane Katrina, one FTC investigation after another has found no conspiracy to fix prices; that supply and demand are in fact the primary reasons that gas… Continue»
The Steep Cost of Sudden Price Spikes One of my recent essays discussed the relationship between high oil prices and recession. Consumers who suddenly find themselves paying more for fuel are hit with the equivalent of a stealth tax, leaving less money available to fuel domestic growth through purchases or investments. Thus, unsurprisingly, there is a strong historical link between escalating oil prices and economic recessions. But despite the financial pain (in fact, because of it) there is a major upside to higher oil prices. Consumers do respond to the price signal, and this response can provide some protection against further price spikes. In this essay, I point out how we can mitigate against the effects of sudden price spikes,… Continue»
Following my recent article in the Washington Post on Five Myths About Gas Prices, I received several inquires for additional commentary on the story. Below is an interview that I did with KSL NewsRadio in Utah that allowed me to expand upon the points from the Washington Post article (as I also did in an expanded version of the story).
An Expanded Look at Five Myths about Gas Prices This past week I had an article published in the Washington Post called Five Myths about Gas Prices. I will discuss each particular myth in detail below, but the five myths I addressed were: Fighting in Libya is sending gas prices higher. Tapping the Strategic Petroleum Reserve is a smart way to reduce gas prices. Oil companies produce less in the spring to make gas prices increase. The Obama administration is driving up gas prices. Americans can’t live without cheap gas. Because such articles go through an editing process and must conform to limits on the length of the article, some topics couldn’t be addressed in sufficient detail. Sometimes during the… Continue»
A Plan to Phase Out “Dirty” Energy After the Deepwater Horizon spill in the Gulf of Mexico, someone said to me “We have to stop all offshore drilling.” My response was that I could get behind that idea, but I wanted to know what sacrifices the person was willing to make. That turned out to be the end of the conversation, because usually the people campaigning against these sorts of things believe that the consequences will be all good (no more oil spills) with no real downside (like less energy available). I can tell you with absolute certainty that we can live with no offshore drilling, but I can also tell you that the price of your fuel would be… Continue»
The following guest post is from OilPrice.com. ———————————— Who, How, and Why: $140 Oil and $5 Gas According to a loosely-organized apocalyptic Christian movement, May 21, 2011 will be the “end of days.” On or about that same date, the price of oil in the United States will begin to climb to $4 a gallon, according to two savants of the oil industry. The former is highly unlikely but the latter is very probable. The escalation in the price of oil is predicted by the legendary oil man T. Boone Pickens, known for his financial acuity as well as his oil expertise, and John Hofmeister, who retired as president of Shell Oil Company, to sound the alarm about the rate… Continue»
Gas prices are nearly 70 cents higher than a year ago, but Saudi Arabian Oil Minister Ali al-Naimi says that current crude oil prices are “beautiful.”