Oil is Not Globally Priced

March/22/2012 16:35PM
2 interesting comments, join the discussion
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I’ve had some very interesting comments defending Obama’s energy prices through the years of his reign. The defense that always get mentioned is the fact that oil is priced globally and drilling here will not influence the price of gasoline. Sorry, but that’s just not true.

The lowest gasoline prices today are in the Midwest. Leading the low-priced states are: Wyoming, Montana, South Carolina, Colorado, and Utah. Leading the high-priced states are California and Hawaii. Stupid is as stupid does, to quote Forrest Gump.

New oil production in Canada and North Dakota can’t get south due to pipeline restrictions. North Dakota will soon surpass Alaska as the second biggest oil producing state behind California. Since some of that oil, as well as the Canadian oil, does not have a pipeline, can you say Keystone, it is actually being sent by rail car to refineries. Hence, the lower prices. The average price is 14% below WTI and East Coast oil. Lower oil prices mean lower gasoline prices. Yes, Toto, there is competition in the gasoline business.

You want to be like California and Hawaii and power your cars, trucks, and boats with wind, pay the piper with your gasoline prices. If you want to reelect Obama, pay the price for not having a pipeline to bring that cheap Canadian and North Dakota oil to a refinery that serves your state. If you want to protect offshore and Alaska and public lands from drilling, pay the price. But, shut up and pay. You asked for it, you voted for it, you deserve it.

If you want to be like North Dakota and Canada and use the natural resources that exist under you, you get the benefit of low gasoline prices.

It’s a simple as that. Just like low natural gas prices, when you drill and find, you benefit. If you want to be a hard core environmentalist, don’t carp. You should be walking, biking, or taking the train anyway. If you aren’t, you’re a hypocrite.

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