Obama Is Not Blameless On High Oil Prices

When Obama took office, West Texas oil was being traded at just above $36 per barrel. By the fall of 2010 -- before the Arab Spring and the Middle East turmoil that we are now seeing -- West Texas crude was selling just above $86 a barrel. This was despite slow, world-wide economies (except for China) and high world-wide unemployment.

The fact is that supplies were up and demand was down and the world should have seen a lowering of oil prices by the Fall of 2010. Not a doubling. But, you see, around the world, oil is only traded in U.S. dollars. And, if the dollar is weakened, then it takes more dollars to buy a barrel of oil. All that spending in 2009 and 2010 by Obama and the Democrats severely devalued the dollar as our national debt piled up. As a consequence, oil prices naturally rose. Not driven by demand, not driven by supply, but instead, driven by the spending policies of Obama and his fellow Democrats in Congress.

On top of that, in April 2010, we had the BP oil spill . In response, Obama pulled all the deep-water drilling permits in the Gulf of Mexico. Traders viewed this as a short and a potential long-term reduction in supply and they started trading oil prices even higher. Further, in December 2010, Obama re-imposed a 7 year ban on any drilling off the Atlantic or Pacific coasts; as well as in the wilderness areas of Alaska. Once again, traders saw this as a future reduction in supplies.

For Obama to blame high oil prices on events that are out of his control is just ridiculous. He's done everything possible to restrict oil production and drive prices up; and, in doing so, make expensive green technologies seem more reasonably priced. Eventually, the world-wide economic doldrums will end. Unemployment will lessen and economies will start to come alive. When that happens, years of pent-up oil demand will literally happen over night. If there isn't enough new supply to meet that demand, dealing with today's high oil prices will look like child's play. That's why Obama's policies are so dangerous for America's future..