Obama Cause Of, Not Solution To, High Gas Prices

Obama calls for the end to Big Oil tax breaks. What we are watching is the Latin Americanization of the US oil industry. Obama knows little about the oil and gas industry. If he fell in a barrel of oil he would not know what it is. In fact our Spanish word, “demogogo,” best describes Obama, a word which often applies to our Latin American politicos.

Obama looks at profits are something evil. He does not understand that an oil company must have profits to replace quality reserves, which deplete with production. One offshore platform can cost a billion dollars! He does not understand small producing wells, striper wells, will become uneconomical without tax benefits. He does not understand higher taxes destroy job formation. He does not understand Higher Taxes will make the US more dependent upon foreign oil. His idea is that high gasoline prices must be investigated for corruption. The international crude oil market is so large the idea speculators can control the market is absurd. Obama has in essence shut down much of the Gulf of Mexico, Alaska, East Coast, West Coast, and slowed down federal onland leases. The US used to produce daily 10 million barrels, now we are at 7 million barrels, and with Obama policies we are headed to 6 million barrels.

Look at the oil taxation policies in Mexico, Venezuela, and Educator to understand the direction our nation is headed. We as a nation with the Obama oil policies will become more dependent on foreign oil; there will be massive loss of jobs; the price of gasoline will increase with increased taxes; and small oil producers not Big Oil will be hit the hardest.

Regarding national gas watch the EPA future regulations on shale fracking, which has been done successfully for 50 years. At the least his new regulations will increase the cost of fracking and at the worst the new regulations will curtail natural gas production.

The ironic issue is Obama is trying to place the blame of high gasoline prices on the Big Oil companies; therefore, they must be punished with high taxes. The reality is Obama is the direct cause of high gasoline prices with more government controls and higher taxes.