Bachmann: I'll get gas under $2

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You act like it would be a huge accomplishment, as pointed out in several posts it would actually be pretty easy. The current administration has stated that higher energy costs were one of their goals, and its one of the few stated goals they’ve accomplished. To achieve lower fuel costs you simply reverse the current administration’s tactics.

What is amazing is that the price of oil is as high as it is given the world wide economic slow down and current low threat level to the oil supply.
What I’m saying is she needs to do is to explain from her mouth and not from some campaign worker on how she can make this happen and guarantee that it’ll happen. How tough can it be for her to give us an explanation?
 
This coming from the same people who were silent when obama made all of his campaign promises; now are crying foul when someone else on the “other side” makes a reasonable promise. Typical.
This is not about Obama or GW Bush, so try not to deflect my question; its about a statement that Bachmann allegedly made and all I’m asking for is how is she going to guarantee what she said?
 
This is an interesting collection of reader comments from NationalReviewonline:
  1. … I am actually from an oil producing state, and my family has been in the oil business for generations. $2 a gallon gas is completely doable. The price of crude isn’t driven by solely actual supply, it is driven by investors speculating on the supply. Just simply announcing the drilling is going to become much easier here at home, will have an effect. In July of 08, Crude was trading at 140 dollars a barrel. Bush removed the executive order banning offshore drilling in the Gulf and the price dropped $20 in two weeks. He then allowed the 26-year moratorium to expire. By December crude was trading at $33 a barrel even though production increases were minimal.
A simple law requiring spectators to actually be able to take delivery of the commodities they speculate on would also go along way in driven down the price of crude.
  1. … I am not that old, but I remember Jimmy Carter. So I am not sure about your “worst recession in recent memory” claim. Carter’s recession was worse. Even with the recession, China’s oil consumption increased as did India’s. Our decrease in consumption doesn’t correalate with the decrease in price. The price went down because speculators speculated on the possibility of more supply coming on line because of the ending of the ban and the ending of the 26 moratorium in the Gulf. Also, there was the Eagleford shale find, the Canadian oil sands, and the shale finds in the Dakotas, Wyoming and Montana.
The comment of the refineries is correct. We are pretty much operating at our capacity right now and since we aren’t building new refineries fast enough, and converting some of the existing ones over to other products, actual supply refined gas and diesel is problematic.
  1. …The government makes more money per gallon than the oil company does.
Want to see prices go below $2.00 again? It is very possible and that doesn’t even include us opening the valve on our own resources. Hey, don’t be fooled. Exoon and the boys have been drilling and capping in Texas and Oklahoma for awhile now. Trust me, they are preparing for the next phase of a great America.
  1. … $2 gas is very possible and in fact, likely if America decided to tap the vast supplies of oil in Anwar, the Gulf and offshore, oil shale, partnership with Canada in tar sands, natural gas, clean coal and coal gasification, and yes, wind, solar, hydro, geothermal.
The menu is filled with energy options…just need leadership to articulate the opportunity and policies to encourage energy people with ideas to partner with people who have capital to invest.

Oil is a commodity and very small changes in supply drive prices very quickly.
  1. … Odd that liberals don’t believe Congresswoman Bachmann’s promise that the price of a gallon of gas would be back down to a price still higher than it was when President Obama took office not 29 months ago (nat’l avg was $1.81 then). Yet liberals will accept that President Obama can decree that passenger cars will run 61 miles on a gallon of gas (and without any other societal cost, to boot!).
That must be the difference between liberals and conservatives. We conservatives took candidate Obama’s word that his plans would cause energy prices to “necessarily skyrocket.”

Conservatives must have a much keener sense of the obvious, I guess.
  1. … The truth is that getting gas below 2 again would be child’s play, and [Obama] could do it as quick and as easy as anyone: just announce that America is open for business again, allow all reasonable drilling immediately, and reduce taxes significantly on people and business; It will probably be there in a matter of weeks. [Obama] could be cruising to a certain re-election on account of a booming economy and sub $2 gas, by Christmas.
But he won’t, because the only thing he wants more than re-election, is to NEVER do a thing that will help American industry. As a community organizer, actually being part of the solution is against his religion.

So we will struggle through to 11/2012, and then a Republican president will do it. It won’t work any better than it could under [Obama] , but it will work in spades. Guaranteed. You can disagree with the second paragraph, but there is no disagreeing with the first. It WILL work, and so fast it will make everyone’s head spin.

But not until 2013, when there is a president who would ever consider it
 
This is not about Obama or GW Bush, so try not to deflect my question; its about a statement that Bachmann allegedly made and all I’m asking for is how is she going to guarantee what she said?
Because what she would do has already been done twice before and it worked just fine.
 
Because what she would do has already been done twice before and it worked just fine.
Then its not a guarantee; its nothing more then an educated guess. What she should have said was that she’d do her very best to get gas prices under $2.00 per gallon. That would be been more honest and up front.
 
Then its not a guarantee; its nothing more then an educated guess. What she should have said was that she’d do her very best to get gas prices under $2.00 per gallon. That would be been more honest and up front.
No.

If something works every time it has been tried, then it’s pretty much a guarantee.

Look at it from the other perspective, … if someone creates a collection of “interferences” and they cause prices to skyrocket, then we know that creating interferences cause prices to rise.

In the airline industry, interferences caused ticket prices to increase.

When the airline industry was deregulated, ticket prices decreased (substantially!).

In the telephone industry, interferences caused service prices to increase.

When the telephone industry was deregulated, the price of service decreased (substantially).

Now it is possible to “play games” … meaning: to say that something is deregulated, when it is not deregulated … so you could do some regulatory price fixing, and then deliberately create a squeeze play between the various members of the community of suppliers.

But, both President Reagan and President Bush II deregulated oil and the price dropped. Substantially.

Can you think of other examples, in addition to the ones I have provided, in which deregulation resulted in lower prices?
 
A lot of people think that if they can control enough, then they can get the prices down.

In fact, the way it works, is … to let go.

But people who want control, don’t want to let go.
 
its about a statement that Bachmann allegedly made and all I’m asking for is how is she going to guarantee what she said?
Why do you say allegedly? Is there some doubt she actually made the statement being attributed to her? Isn’t the news article proof enough?

ChadS
 
[Obama] could be cruising to a certain re-election on account of a booming economy and sub $2 gas, by Christmas.
Now who will make money and pay decent wages by selling $2 gas over the long haul? Know that in many countries they are paying far less but the government subsidizes them. Not likely to happen in the states.
 
But, both President Reagan and President Bush II deregulated oil and the price dropped. Substantially.
In 2001 oil was at $20 a barrel. In 2008 it reached $147, thanks to the loose monetary (“bubble”) policy of the Fed. The bank mess and the sharp drop in worldwide demand tanked all commodities, though they are still substantially above the 2001 level.

Give credit to Volcker for the drop in oil, gold, and other commodities in the Reagan era. Nixon’s wage and price freeze failed to bring inflation down after he removed the gold standard.
 
Then its not a guarantee; its nothing more then an educated guess. What she should have said was that she’d do her very best to get gas prices under $2.00 per gallon. That would be been more honest and up front.
Out of curiosity, did she actually say the word “guarantee”?

Or is that the word that YOU attributed to her?

Just curious.
 
Why do you say allegedly? Is there some doubt she actually made the statement being attributed to her? Isn’t the news article proof enough?

ChadS
I didn’t personally hear her make the statement, so I’m giving her the benefit of the doubt.
 
Out of curiosity, did she actually say the word “guarantee”?

Or is that the word that YOU attributed to her?

Just curious.
I attributed that to her based on her statement “Under President Bachmann, you will see gasoline come down below $2 a gallon again. That will happen.”

To me that’s an implied guarantee.
 
I attributed that to her based on her statement “Under President Bachmann, you will see gasoline come down below $2 a gallon again. That will happen.”

To me that’s an implied guarantee.
Nevertheless, thank you for admitting you put words in her mouth … words that Bachmann did not use.

She said “that will happen” because prices drop whenever free market deregulation is allowed to take place.

It happened with gasoline, … and with energy, in general, at least twice that we personally experienced;

… telecommunications, that we personally experienced and are experiencing;

… airline fares, that we personally experienced and are experiencing;

… railroad freight charges, that we personally experienced and are experiencing;

… and even … and especially … in retail, with the Amazon and eBay phenomena, which we personally experienced and are experiencing.
 
Now who will make money and pay decent wages by selling $2 gas over the long haul? Know that in many countries they are paying far less but the government subsidizes them. Not likely to happen in the states.
Not likely that the government “subsidizes” them.

If you live in a country with abundant land-based oil wells and refineries, then the actual production cost is minimal. So there would be no need to use the world market price. No subsidies needed.

There are places where oil just oozes or just naturally seeps out of the ground. If you drill for water, you will likely find oil just below the surface.

In fact, in Pennsylvania prior to around 1850, finding oil was a really big problem. No one before 1850 really knew what to do with the stuff.*

Drillers would be drilling for water and strike oil, time after time.

So, water became a big issue.

There are places that have no water. So for them, getting clean drinking water is very difficult and very expensive. For other places, fresh, clean drinking water is abundant and virtually free.

Where I live in the country, water is only a few feet down, and it is super abundant … even causes floods at times. Yet some people have actually said that “we should ration water to be in solidarity with the people in Africa who have no water”.

Or, we could tax water because water is so expensive in some places.

Rationing something because of “solidarity” makes no sense.

It makes more sense to assist those people to develop water resources where they are. [They do have water, by the way … but they also have totalitarian governments that make one catastrophic economic decision after another.]

Those people in Africa have an abundance of totalitarian government … should we ask them to share their surplus with us?

So, the issue of “subsidizing” is really not a valid issue.
  • Finally, eventually, some guy hired a chemist and they figured out they could make useful products from the oil.
Go here and click on 1, 2, and 3. Fascinating reading … the history of oil in the United States:

priweb.org/ed/pgws/history/history_home.html

Burnable gas for illumination came about in the 1780’s in Europe:

inventors.about.com/od/lstartinventions/a/lighting.htm

It was made from coal … so it was called “coal gas”.
 
If you live in a country with abundant land-based oil wells and refineries, then the actual production cost is minimal. So there would be no need to use the world market price. No subsidies needed.
Monte, I agree with much of what you say but there is more than just having the oil. Witness Iran which makes ton of money producing oil but its poor technology can’t produce refined low price gasoline. Thus they have to import gasoline to satisfy their drivers.

You have to give the credit to US firms which can refine the oil efficiently. When oil was at $20, price of gasoline was about $1.50 - 2.00 or so. So at $100 a barrel, one would expect five times that high, right? But that hasn’t happened, so it’s more than just deregulation of oil drilling that causes gas prices to be more affordable while enabling the economy to grow.
 
Never mind gas issues… Bachmann should be focused on shutting down abortion in the United States. She should be working on making abortion illegal. According to most Catholics here (CAF) abortion trumps everything. It’s very interesting that she has little to say to about it right now. Her “stump” speeches should begin and end with the topic of abortion.

I would never vote for her, but I do like candidates that stick to their convictions on and off camera.
 
Nevertheless, thank you for admitting you put words in her mouth … words that Bachmann did not use…
Technically your right; but I believe that most reasonable people in here who read that, will understand the implications based on what she “technically” said.
She said “that will happen” because prices drop whenever free market deregulation is allowed to take place.

It happened with gasoline, … and with energy, in general, at least twice that we personally experienced;

… telecommunications, that we personally experienced and are experiencing;

… airline fares, that we personally experienced and are experiencing;

… railroad freight charges, that we personally experienced and are experiencing;

… and even … and especially … in retail, with the Amazon and eBay phenomena, which we personally experienced and are experiencing.
This is where I’ll have to disagree with you; its not 100% guarantee that it will occur, rather it most likely will occur and in my book thats like having a doctor tell you that he’ll guarantee to correct a medical problem involving your leg, that you’ll be able to walk normally and after the surgery you can sort of walk; just not 100% of what he told you would be able to do.

Using this analogy, this is what she is basically saying; making it seem like a guarantee based on past experiences and their can be no absolute guarantee in this situation.
 
Never mind gas issues… Bachmann should be focused on shutting down abortion in the United States. She should be working on making abortion illegal. According to most Catholics here (CAF) abortion trumps everything. It’s very interesting that she has little to say to about it right now. Her “stump” speeches should begin and end with the topic of abortion.

I would never vote for her, but I do like candidates that stick to their convictions on and off camera.
When the Catholic vote deems this important enough to actually vote for, she is a believer too. Until then, there is not a lot any politician can do to change things around.
 
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