Posts Tagged ‘crude’
Posted by mattusmaximus on May 9, 2012
In a follow up to my recent posts (here and here) on the issue of rising U.S. gas prices and how the President and Congress really have little power to affect them, despite the belief by some that they do, I heard an excellent piece on NPR this morning about this very subject. Of course, in NPR fashion, they went a bit deeper and actually started to discuss in a scientific fashion why it is that Republicans are blaming President Obama for higher gas prices now whereas a few years ago it was Democrats blaming then President Bush for higher gas prices. Check it out…
Charlie Reidel/AP — President Bush and then-Democratic presidential nominee John Kerry shake hands at the end of a presidential debate in 2004 in St. Louis. Researchers want to better understand why partisans’ views of the facts change in light of their political loyalties.
When pollsters ask Republicans and Democrats whether the president can do anything about high gas prices, the answers reflect the usual partisan divisions in the country. About two-thirds of Republicans say the president can do something about high gas prices, and about two-thirds of Democrats say he can’t.
But six years ago, with a Republican president in the White House, the numbers were reversed: Three-fourths of Democrats said President Bush could do something about high gas prices, while the majority of Republicans said gas prices were clearly outside the president’s control.
The flipped perceptions on gas prices isn’t an aberration, said Dartmouth College political scientist Brendan Nyhan. On a range of issues, partisans seem partial to their political loyalties over the facts. When those loyalties demand changing their views of the facts, he said, partisans seem willing to throw even consistency overboard. …
Click here to read the entire story
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Posted in economics, politics, psychology | Tagged: 2012, blog, cars, cognitive dissonance, conspiracy, conspiracy theory, crude, Democrats, economics, economy, election, fact, fiction, gas, gasoline, GOP, market, money, myth, National Public Radio, NPR, Obama, oil, partisan, politics, president, President Obama, price at the pump, prices, psychology, pump, recession, Republicans, United States | 1 Comment »
Posted by mattusmaximus on April 27, 2012
I was inspired to write the following JREF Swift blog post as a result of my earlier posts (here and here) on the question of gasoline prices in the United States and the powers (perceived or real) of the U.S. president. I hope you find it enlightening…
On my blog, I recently put together a post – Gas Prices and Politics: Fact vs. Fiction – about higher gas prices and how people are blaming President Obama for it. As I pointed out there, Republicans blaming him for the increase in the price of gasoline (and oil in general) are wrong for the same reason as when Democrats blamed former President Bush back in 2007: the President doesn’t really have that much power to influence oil and gasoline prices.
So, if it is true that no such power exists for the leaders of our government to affect the price at the pump (and that is true, as the prices are set more by market factors such as global supply and demand of oil), why is it that people want to lay blame upon our mostly blameless leaders? I struggled with the answer to this question for some time, but I think I have finally hit upon a possible answer: many people, either consciously or not, attribute powers to the President of the United States and Congress that simply do not exist.
And that asks the next obvious question: why do people attribute such powers to our political leaders? Why is it that many of us assign almost god-like abilities to our decidedly non-god-like and wholly fallible authority figures?
I think the answer is multi-faceted and can give some interesting insights into how we think about a lot of things, especially regarding politically oriented topics. In addition, an analysis of this topic can lead us into a deeper discussion of a philosophical concept known as “agency”.
First, I think (somewhat cynically) that there are some, if not many, politicians in government who, either actively or inactively, encourage the notion that they have more power than they are in reality. After all, this is one of the reasons why people vote for candidates running for political office: because they make promises and we expect them to deliver on those promises, whether or not those promises are in any way, shape, or form realistic to achieve. This also goes for the various subsidiaries which surround the government, such as lobbying groups, political action committees, etc. But it’s too easy to stop there.
Second, I think that in many ways we are somewhat hard-wired to make inferences to the existence of things which are not there. In philosophy, this is sometimes referred to as “agency”, where we assign some kind of powers and abilities to an entity through our beliefs about that entity or our behavior towards it. For example, how many of us have been in the middle of some very important work on the computer when suddenly the program crashes? No doubt that many of us then engaged in a certain amount of cursing at (not necessarily about) the computer, as if it could not only hear but understand us. (Aside: my wife works with computers for her career, and she will swear up and down that “they know what we’re thinking”) The computer itself is real enough, but what about the agency which we assign to it?
But when you step back and think about it, it’s downright silly to rant and rave at the computer. The most obvious reason for this is that it simply doesn’t work. Yell at the computer all you want, but that won’t fix the problem; actually trying to solve the relevant hardware and/or software problem will fix things. The other reason is that, let’s face it, at the end of the day the computer is simply a collection of circuits, wire, switches, and assorted electronics. Does it really have a mind with which to interact? The answer, so far with today’s common technology, is a negative, yet for some reason we engage with the computer as if it did have such a mind. And in so doing, we assign agency to the computer. …
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Posted in economics, philosophy, politics | Tagged: 2012, agency, belief, blog, cars, conspiracy, conspiracy theory, crude, Democrats, economics, economy, election, fact, fiction, gas, gasoline, God, gods, GOP, illusion, market, money, myth, Obama, oil, Paul Brandus, Peak Oil, philosophy, politics, power, president, President Obama, price at the pump, prices, pump, recession, Republicans, Skeptic Money, spike, The Week, United States | Leave a Comment »
Posted by mattusmaximus on April 17, 2012
As a brief follow up to my recent post titled Gas Prices and Politics: Fact vs. Fiction, I wanted to pass along some deeper analysis that my fellow skeptical blogger Phil over at Skeptic Money did. It puts a bit more meat on the bones of my previous argument that (duh!) the President of the United States actually has very little power to affect the price of gasoline at the pump. Read on…
Blog idea from The Skeptical Teacher. [That’s me :)]
This is one of the new right-wing talking points. The interesting point is that it’s true. Well, the part that the cost of gasoline going up. However, Obama had nothing to do with it.
“Gas prices since Obama took office have risen by 103.79 percent. No other presidents in recent years have struggled as much with soaring oil prices.” – US News
Here is a graph from DShort.com.

Notice the green line. It is the price of oil. In 2008 while the recession was going strong the price of oil was bid up to almost $150 per barrel by crazed speculators. When the speculators faced the fact of decreased demand due to a global recession the price of oil collapsed to around $40 per barrel. The result is a dramatic drop in the cost of all things that come from oil – including gasoline.
Obama took office on January 20, 2009 at the very bottom of the price drop. Many countries are doing much better now than in 2008-9 and global demand has increased.
Just the other day someone told me that the price of oil was going up because Obama was limiting the production of oil. I thought he was full of crap so I went and searched out the facts for myself. If you ever want data on energy production go to eia.gov.
I found this specific data that shows US Crude Oil production. In 2008 (The year before Obama became president) the US produced 4,950,000 barrels per day. In 2011 the US produced 5,659,000 barrels per day. An increase of 14.3%.
They also claimed that Obama has reduced off shore drilling in the Gulf of Mexico. In 2008 The US produced 1,152,000 barrels per day and in 2011 it was 1,318,000. Wrong on both accounts.
Their third claim was that more off shore drilling would reduce the cost of gasoline and maybe back to what it was 3 years ago. The US produced 5,659,000 barrels per day in 2011 and 23% (1,318,000 / 5,659,000) from the Gulf. US oil production is about 11.6% of the worlds total oil supply. If the Gulf is 23% of this total and you doubled this amount (this could take 10-20 years) then that would increase world production by less than 3%. I’m sure that this hypathetical and dramatic increase would lower the cost of gas. However, I would guess by $0.10 to $0.15 per gallon. [emphasis added]
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Posted in conspiracy theories, economics, politics | Tagged: 2012, blog, cars, conspiracy, conspiracy theory, crude, Democrats, economics, economy, election, fact, fiction, gas, gasoline, GOP, market, money, myth, Obama, oil, Paul Brandus, Peak Oil, politics, president, President Obama, price at the pump, prices, pump, recession, Republicans, Skeptic Money, spike, The Week, United States | 2 Comments »
Posted by mattusmaximus on April 12, 2012
I don’t usually post on economic issues, but I wanted to say a few things regarding the recent brouhaha regarding higher-than-usual gasoline prices in the United States. The issue has become heavy political fodder due to this being a presidential election year, and there have been a number of dubious claims made on the matter. So, to help sort fact from fiction on this issue, I would like to reference the following well-written article from Paul Brandus at The Week.
While there are a number of excellent points made throughout the article, I wanted to focus on the big #1 myth: the notion that the president of the United States has some kind of magical ability to control the price of gasoline…
I recently wrote about the many myths and misunderstandings Americans have about gas prices, oil companies, and the presidency. A few folks got upset because the facts and figures I mentioned weren’t what they wanted to hear. But as John Adams said: “Facts are stubborn things.” With that in mind, here are a few more myths and misunderstandings — about gasoline, renewable energy, politicians — and the facts:
Myth #1: Presidents have major power over gas prices
Gasoline prices have more than doubled on Obama’s watch, from $1.89 on Inauguration Day in 2009 to last week’s $3.93 (AAA data). That’s an increase of 107 percent. But guess what? Gas prices skyrocketed 387 percent between 2002 and 2008, when the average price of regular went from $1.06 to $4.11, before dropping again before Obama took office.

Chart from Doug Short
When gas prices exploded from 2002 to 2008, Democrats — including then-Sen. Obama — were wrong to blame George W. Bush, just as Republicans are wrong to blame Obama for the 107 percent jump since 2009. So who can we blame? The “blame,” if that’s the word, lies largely with the ever-changing market cycles of supply and demand — not just in the U.S., but around the world. I know, I know. It would be so much simpler if you could just blame one person for the rise in global commodity prices. But that’s not how it works. Sorry.
I find this kind of thinking, the willingness to blame those in power for whatever calamity that happens to befall you at any given time, to be fascinating. I remember when gas prices were high back in 2007 and people were blaming then President Bush; and now some people are blaming President Obama. It’s almost as if these folks, in their own minds, grant some kind of god-like powers to the president once they are elected; and of course our leaders do not have such powers. I suppose it is a way of coping with the uncertainty in the world: rather than admit the reality that even our most powerful leaders are often quite powerless (and the implication that we, as individuals, have even less power than we thought) against the random nature of the universe, many people would make up a fiction that “they” (insert spooky music) are behind it all and to blame; so if we can only get “them” out of power, then things will automatically get better. Such thinking is strikingly similar to that employed by many conspiracy theorists.
If you find yourself in this mode of thinking, I’ve got a news flash for you: reality doesn’t give a damn what you think; it doesn’t give a damn what the president thinks. And casting blame hither and yon will do nothing to change that. Sorry to burst your bubble.
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Posted in conspiracy theories, economics, politics | Tagged: 2012, cars, conspiracy, conspiracy theory, crude, Democrats, economics, economy, election, fact, fiction, gas, gasoline, GOP, market, myth, Obama, oil, Paul Brandus, Peak Oil, politics, president, President Obama, price at the pump, prices, pump, recession, Republicans, spike, The Week, United States | 16 Comments »