Jawbone of an Ass: Bush's Utter Failure with OPEC

[Lasher]

March 06, 2008

In the pantheon of his presidential failures, the utter inability of former Texas oilman George W. Bush to influence OPEC and the price of oil stands out as the most predictable - and ironic. Just one day after OPEC members rejected President Bush's call to boost crude production, oil jumped to the stratospheric level of $105 a barrel. This latest indignity caps seven years without results for the man who once boasted he would "jawbone" his friends in Kuwait and Saudi Arabia into opening the spigots.

<snip>

By June 2000, the Bush jawbone pledge became a standard on the stump. As the New York Times reported, Bush foreshadowed future expenditures of political capital he would fail to accumulate:

"I would work with our friends in OPEC to convince them to open up the spigot, to increase the supply," Mr. Bush, the presumptive Republican candidate for president, told reporters here today. "Use the capital that my administration will earn, with the Kuwaitis or the Saudis, and convince them to open up the spigot."

<snip>

Meanwhile in Washington, White House press secretary Dana Perino admitted yesterday that the President is "disappointed that they decided not to increase production." President Bush himself whined of OPEC's intransigence that "I think it's a mistake to have your biggest customer's economy to slow down." Powerless now as throughout his presidency, Bush feebly concluded "Until we change our habits, there's going to be more dependency on oil."

Which just goes to show the American people what happens when they place their trust in the jawbone of an ass.



http://www.perrspectives.com/blog/archives/000968.htm

This is a very good article, with links to document every claim and quote.

According to the Energy Information Administration, the average US price of regular gasoline was $1.46 a gallon when Bush 43 assumed the presidency. Gas Buddy reports today's average at $3.23.

[sinkingfeeling]

1. Excellent resource.

[Lasher]

8. Yes, I've already used it to smack down a silly Republican assertion

Guy was saying Congressional Democrats should share blame for today's gas prices. I pointed out that since Junior didn't mention Congressional Republicans, who had held the majority for six years in January 2000, then we shouldn't blame Congressional Democrats, who have had the majority for one year.

[Art_from_Ark]

2. This is what happens when you allow Cliff Barnes and J.R.Ewing

to take charge of the top two positions in government

[Lasher]

9. Not exactly, Barnes and Ewing were successful oilmen.

Junior was a failure and Poppy had to get him bailed out.

[Demeter]

3. Very Clever Headline!

Of course they all know W., the Idiot Son of the the Idiot Father. Of course OPEC isn't going to pay any attention. They know who the real master is...and it isn't Cheney, either, although he was closer.

Why else would Chavez be such a target. He's more powerful than the reputed Leader of the Free World, since W broke the army on Iraq's sandy shores.

[Lasher]

11. Yeah, this guy is good.

Note that today's price of oil is now higher than the inflation-adjusted record set back in April 1980. Think I'll set the Wayback Machine to that period to see what Saint Ronnie had to say about Carter on the subject.

[Supersedeas]

18. I like it too

[gratuitous]

4. Bush was "outraged" when gas hit a buck fifty a gallon

When analysts are predicting $4 for a gallon of gas, George confesses ignorance about the prospect, and merely says, "That's interesting." Of course, when one of his limos pulls up to the pump, it's not like George reaches for his wallet.

[KharmaTrain]

12. Yep...The REAL Mission Accomplished

In the 90's, big oil complained that they were scraping the bottom...prices were TOO low and this was their justification that was later used to give them the big tax breaks under their BFEE buddies.

Think of the rise of the price of oil over these years as the real boooosh tax hike...as the price went up, so did the money collected in taxes that went to fund his war for profit, which in turn, destabilized the oil market and drove the price higher. Of course, the asshat doesn't know what the price of a gallon of gas is...when was the last time you think he ever filled his own tank or had to even think about paying for it? All he cared was seeing the dividends rise and the profits rolling in that surely have found their way into his many pockets and that of his cabal.

When one has a charmed life in a bubble, reality means nothing.

[randr]

5. First president in my life not to open Federal Reserves

to counter balance the cut in oil production by foreign states.
He acts as if he and his coven of crude cronies are secret members of OPEC.

[SpiralHawk]

6. Jawbone of an ass -

[jimshoes]

10. That face may one day

adorn the front of a $3.00 bill. Yick!

[Lasher]

13. Heee heee, that's pretty good.

Overloaded my sensors though. Yuck.

[dysfunctional press]

7. the simple fact is- they won't increase production because they CAN'T increase production.

it's called "peak oil", and we're there.

[Lasher]

14. I think you're right.

But Republican rhetoric has been quite different and Junior made some tall claims about what he was going to be able to do. Now they own the problem.

To me the issue is not how we're going to get gas prices significantly lower because I don't think anybody could do that now. My point is, look what a disgusting bunch of hypocrites, liars, and fools these Republicans are.

[Strelnikov_]

15. But . . but . . it's the value of the dollar . .

Really?



http://worthwhile.typepad.com/worthwhile_canadian_initi/2007/10/recent-oil-pric.html
http://www.econbrowser.com/archives/2007/10/does_dollar_wea_1.html

OK. But . . but . . it's speculators . .

Really?

http://www.marketwatch.com/news/story/goldman-sachs-raises-possibility-200/story.aspx?guid=%7B4B702F7F%2D41F8%2D45F0%2DA133%2D630F12F2C764%7D&dist=TNMostRead

"As the lack of supply growth and price-insulated non-OECD demand suggest a future rebound in U.S. gross domestic product growth or a major oil supply disruption could lead to $150-$200 a barrel oil prices," Goldman said. Goldman also reiterated its view that oil prices could fall as normal market conditions return over the next four years. "The core of our 'super-spike' view is that oil prices will keep rising until demand declines globally on a multiyear basis, resulting in the return of excess capacity and a lower cost structure," Goldman's analysts said. "Given this view, once excess capacity returns, we think prices can move sharply lower."

Lot of supply talk from Goldman-Sachs there.



Also, anyone wonder why speculators would be running to a market where any day KSA can open their spigot and put an additional 4 M bbl/dy (as I have been told here on DU) into the market? Or, just maybe, the speculators have figured out there is no more supply (rate), and little possibility of a decrease in demand over the near term.

[Lasher]

16. Bush’s senior economic advisor said gas prices would lower as a result of invading Iraq

Just wanted to add this tidbit so I can find it later:

Laurence Lindsey – President Bush’s senior economic advisor at the time — argued in 2002 that the Iraq war would increase oil supplies and lower prices. From the Washington Times, 9/19/02:

As for the impact of a war with Iraq, “It depends how the war goes.” But he quickly adds that that “Under every plausible scenario, the negative effect will be quite small relative to the economic benefits that would come from a successful prosecution of the war.”

“The key issue is oil, and a regime change in Iraq would facilitate an increase in world oil,” which would drive down oil prices, giving the U.S. economy an added boost.

http://thinkprogress.org/2006/04/19/bartlett-caught-in-lie/

[ProfessorGAC]

17. I'm Shocked. SHOCKED! That Lindsey Was Wrong

Because he has only been such a brilliant economic theoretician and has been correct in his predictions so often.

NOT!
The Professor