Tuesday, December 22, 2015

Obama's Climate Change Nightmare: Cheap Oil Getting Cheaper

I'm of the belief that every time Obama says something, the opposite is true.  If he says you can keep your doctor, you can't. ISIS is a JayVee team?  Not hardly. These are only two examples of countless failed assertions made by this President.

In January 2015, Obama said "Don't buy that gas guzzler, fuel prices are gonna go up."  True to form, oil and subsequently gasoline prices, have fallen significantly.  At the time Obama said that, West Texas oil (WTI) was around $59/barrel.  As of this writing, it now sits at $36.32/barrel, and many say it could go as low as $20/barrel.  If that should happen, the national average for gasoline would be about $1.34 a gallon.  Substantially lower than the $1.61/gallon when Obama took office. Currently, the national average is slightly above $2/gallon according to the American Automobile Association (triple "A").

The reason that the President said "Don't buy that gas guzzler" is because he knew what would happen with low gasoline prices.  In general, people would stop buying fuel efficient and expensive hybrids and electric cars.  According to a recent story in Scientific American, Ford's biggest gas guzzlers, the brawny and high performance Mustang and the massive Lincoln Navigator, had a 70% increase in sales over last year.  The increase in sales of low-mpg and large SUV's and trucks are showing across the board sales increases among all manufactures.  At the same time, sales of electrics and hybrids have suffered.

I believe that falling oil prices drove President Obama's recent decision to not approve the Keystone XL pipeline project.  But, another decision on his part, will only make oil even cheaper.  That decision was to, again, allow Iran to sell its oil on the world market.  Thus, the current glut that is driving oil prices down, will only become a bigger problem when Iran's oil hits the markets.  For a President who wants his legacy to be about being green and lowering CO2 emissions from automobiles, cheap gas is his worst nightmare.


Obama: Don't buy that gas guzzler, fuel prices are gonna go up: http://www.roadandtrack.com/car-culture/news/a24697/obama-dont-buy-that-gas-guzzler/

West Texas Oil Prices: http://data.cnbc.com/quotes/%40CL.1

Gasoline Price Calculator Based on Oil Price: http://econbrowser.com/archives/2014/06/gasoline-price-calculator

Cheap Gas Fires Up Big SUV Sales, Slows Electric Cars, Hybrids: http://www.scientificamerican.com/article/cheap-gas-fires-up-big-suv-sales-slows-electric-cars-hybrids/

AAA: Daily Fuel Guage Report: http://www.fuelgaugereport.com/

The case for $20 oil is getting stronger by the day: http://www.marketwatch.com/story/brace-yourself-because-20-oil-could-be-next-for-this-market-2015-12-08

Oil-price drop may threaten to undercut Obama's clean energy legacy: http://www.autonews.com/article/20150128/OEM01/150129810/oil-price-drop-may-threaten-to-undercut-obamas-clean-energy-legacy

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