America’s trucking industry is on pace to pay a whopping $138.7 billion for fuel in 2011 — an increase of $37.2 billion over last year due to higher energy prices. That’s a lot of money for gas. And unfortunately for consumers, they’re likely to pick up the tab. A new study from the Consumer Energy Alliance blames the lack of a national energy policy for America’s economic woes. Higher prices are costing jobs and putting a strain on families struggling to make ends meet. Higher costs for the transportation sector …
“I give out this statistic all the time, and forgive me for repeating it again: America holds about 2 percent of the world’s proven oil reserves.” – President Barack Obama, March 30, 2011 It would be easier to forgive the President’s repetition if it the way he used it made any sense at all. Here is his explanation of why it matters: What that means is, is that even if we drilled every drop of oil out of every single one of the reserves that we possess—offshore and onshore—it still …
As gas prices in the United States continue to soar, policymakers in Washington are eager to point fingers and offer solutions. Most of the ideas are not new, and some are certainly much better than others, but they will inevitably be part of the debate. As legislators turn their attention to gas prices, here’s a straightforward list of what not to do. 1. Don’t increase subsidies for biofuels. The most popular subsidized biofuel, ethanol, produces less energy per unit volume than does gasoline, contributes to food price increases, costs taxpayers …
Aiding and abetting the solar and wind energy industries in their continuing efforts to mislead the American people, Energy Secretary Steven Chu called for a shift to renewable energy to insulate us from petroleum price spikes. Recent events in Egypt are partially responsible for a recent jump in oil prices, but renewables are not the answer. A few facts will show why. First, according the Obama Administration’s own Energy Information Administration, petroleum accounts for less than 1 percent of electricity production. Since wind and solar produce electricity and not transportation …
As oil prices steadily rise, many oil and gas experts fear higher prices could stunt economic recovery, not just in the United States but around the globe. From the Financial Times: This week oil climbed to $87 a barrel, its highest level since October 2008 and prompted concerns that triple-digit crude was once again in the offing. This was after a period of eight months when oil traded between $70 and $80, a narrow band that pleased oil producers without hurting consumers too much. The latest surge seems to have …
As the national average of gasoline creeps to three dollars a gallon, economists are warning that high gas prices in the United States could slow the economic recovery. Other countries’ economies are recovering more quickly and increased production and activity is putting upward pressure on oil prices. That coupled with a relatively weak US dollar spells trouble for American drivers. Throw in carbon dioxide cuts and gasoline prices could reach unprecedented levels: To meet the Obama administration’s targets for cutting greenhouse gas emissions, some researchers say, Americans may have to …
Confusing times lead to conflicting concerns. Worries over current deflation run into worries about explosive inflation down the road and now there are growing worries over another global asset price bubble. All of these worries are valid, but the possible return of the asset price bubble is the newest and perhaps most serious in the near term. As with the previous bubble, however, commentators seem to be conflating the causes. The simple evidence of a bubble begins with the Dow Industrials pushing toward 10,000. Who knows what the right level …
The national gas price average is $2.51 for July 28, 2009, far less than the $3.96 it was one year ago to this date, but still high enough to make you groan as you wait for a seemingly-endless long time for that click of the pump, letting you know your tank is full. And, just like every other time gas prices increase to uncomfortable levels, people are passing the buck to oil speculators. From the Wall Street Journal: The Commodity Futures Trading Commission plans to issue a report next month …
MOSCOW — The financial turmoil in Russia might not be all-embracing yet, but some of its features suggest its gloomy prospects. Big business’ lack of confidence in national economy is what primarily strikes the eye. Speaking at a Cabinet meeting last week, Prime Minister Vladimir Putin unveiled scandalous information concerning the bank giants — government bailout money recipients stepping up their operations to move funds offshore in lieu of channeling the money to its intended recipients in industry that badly need it. There are some other reasons for capital outflow, …
Almost 30 years ago, a steep rise in oil prices drove consumers to buy smaller, more fuel-efficient cars. Cars that American auto manufacturers simply didn’t make. The resulting huge drop in sales drove Chrysler to the brink of bankruptcy, but before the market could play itself out, President Jimmy Carter came in “rescued” Chrysler with $1.2 billion in loan guarantees. At first glance it may appear that Chrysler was saved from bankruptcy. But a closer examination of the record shows that even with the loans, Chrysler went through a quasi-bankruptcy. …
