Question about Clinton, Obama, and gas prices.

[celestia671]

If one of them is elected, do you think they will be able to (or want to)do something to bring down oil prices?

[Buzz Clik]

1. What exactly could they do? Surely you wouldn't want price controls.

If you want lower prices, we need new sources, like ANWR. I don't like that either. Or, perhaps, eliminating gasoline taxes.

[celestia671]

2. That's why I was asking.

What could be done, if anything? On the news the other day, they talked about all the taxes that are put on the gas. Maybe those could be taken off or reduced?

[Eric J in MN]

5. If you get rid of gas taxes, they will charge the same overall price...

...and get a bigger profit.

[RC]

10. What is needed is an obscene..., err, excess profit tax on the oil companies. Then take that money

and use it for research for alternative energy sources, building and maintaining better public transportation. A years worth of those taxes would fuel the research for decades.

[celestia671]

12. And they would deserve it too!

These stupid oil companies that brag about their profits would be brought down a notch or two if they got taxed a little bit more!

[DJ13]

6. What exactly could they do?

Announce in a Presidential news conference an investigation into the trading patterns of oil and gasoline futures on the NYMEX to ensure theres no "unusual activity" (read collusion to keep prices high) taking place.

Want to see a panic selling off in oil futures, and the resulting collapse of the price?

Thats how you do it.

Couple that with an announcement of a suspension of any further filling of the Strategic Petroleum Reserves (its been increased 500% under Bush), and the possibility of drawing down some of those reserves to "provide price stability in a troubled oil market" (read as if you try to pump the price again we'll dump enough to push it back down).

If either Democratic President did those two things, the price would be cut in half within 30 days.

Guaranteed.

No price controls, just use the bully pulpit of the office of the President to protect the consumers.

[celestia671]

8. That sounds about right

eom.

[DJ13]

3. Either of them will have to try and get the price lower

I know every talking head "expert" on TV says our economy is in the crapper due to those deabeat low income home buyers, but the reality is that our priblems stem more from inflation than the health of the banks.

Until oil and gas prices come down from the tripling we have seen since Bush's inauguration it wont be possible to reign in inflation.

[celestia671]

4. It just seems so bleak...

They're talking about the dollar losing more value everyday which influences the cost of oil. Everything is getting so expensive. Will it be too late for our economy by the time Obama or Clinton takes office?

[Doug.Goodall]

7. A Democratic Administration could do a lot to reduce demand

Reduction in demand = reduction in price

The Administration could mandate higher efficiency in energy usage like vehicles, electric lights, air conditioners
Mandate the use of public transportation
Start a 'Manhattan Project' to find alternative sources of energy
Drastically increase government support for geothermal energy, wind power, solar

I think a new administration with new (read: better) ideas could do a lot to reduce the price of oil and gas.

[celestia671]

9. True

I'm just glad my car gets 30mpg, but it's still depressing to see that $25 only gets me a little over 8 gallons!

[customerserviceguy]

11. The only thing

that will bring oil prices down in the short term is stability in the Middle East. That's something a President can do, or in the case of the current occupant, something he undid.

In the long run, we just have to become energy independent. We probably have enough oil for those things that absolutely require it (such as jet fuel), we just have to find ways of powering ground transportation with other forms of energy. Some of them will have to be made much more environmentally friendly. That's difficult when oil is relatively cheap, it becomes much more economical at very high petroleum prices.

[Spider Jerusalem]

13. No, there's NOTHING either of them can do to bring down oil prices.

Oil prices are at historically high levels because of several factors:

First, inflation in the US dollar, which has lost 50% of its value vs the Euro over the past six years.

Second, historically high demand pressures, exacerbated by the economic expansion of India and China.

Third, supply constraints; there is extremely limited production overhead, and current global demand is nearly equivalent to global production (which peaked, as far as we currently know, in the summer of 2005 and has not reached those levels since).

Fourth, oilfield depletion; some of the world's major oil-producing regions are experiencing a decline in their production capacity. The North Sea oilfields, the Cantarell oilfield off the coast of Mexico, the Saudi Arabian oilfields...all of these are, as far as is known, experiencing declining production, which adds to the supply constraints mentioned above.

Fifth, lack of new oilfield discoveries; new discovery is below levels needed to make up for losses due to oilfield depletion, and has been for some time. Even if many new, large oilfields were discovered, the time between discovery and useful production is roughly five years, during which time any further declines would be likely to only be marginally offset by new production.

Sixth, market forces; increased demand for oil from Asia has driven up prices on world markets, as competition for a limited resource increases. The supply constraints and burgeoning demand from India and China only make this more, not less, likely; not to mention that due to the current economic situation and upward price volatility on petroleum markets, there's a lot of speculation from commodities traders that only adds to upward price pressures.

So...the answer is 'not bloody likely'.

[TahitiNut]

14. It's the WEAK DOLLAR!

We must return to full employment, STOP buying foreign goods wherever possible, and renovate our manufacturing base.

There's NO alternative. HONOR LABOR!

[intheflow]

15. Locking.

This is primary-related and should have been posted in General Discussion: Primaries.