Is it me, or is it beginning to feel like 2008 all over again?
You remember 2008: gas prices rose to their highest high ever - $4.11 a gallon back on July 17th of that year.
The economic repercussions were severe. People cut back on driving and stopped spending.
We invented the word “Staycation." Remember that?
Fortunately, the situation was temporary. By December 31 of that year, gas prices had plunged to $1.61.
Can you imagine? It's hard to since the national average today of $3.61 is already higher than the average was on this day four years ago - back then it was $3.13 a gallon.
Were prices to continue to rise at the same rate they did in 2008, you could see prices of $4.61 this year.
Where all of this goes is really anybody's guess. It depends on Iran and whether that country continues to threaten the world with nukes, or maybe just shutting down a critical squeeze-point in oil distribution called the Strait of Hormuz.
Then there's what Israel might do. Another question mark.
And, finally, prices will be impacted mightily by supply disruptions in the U.S.
The Northeast stands to feel much of this pain as refineries struggle to keep up.
The President today says he has a solution to the problem. “We need new sources of American made energy. Right now, we're experiencing just another painful reminder of why developing new energy is so critical to our future.”
Thank you Dr. Obvious.
More supply would make the difference. Unfortunately, you've turned down just about every opportunity to expand supply.
The drilling moratorium in the wake of the Deepwater Horizon explosion and spill lasted not six days or six weeks but six months.
The loss to output totaled nearly $3 billion.
Oil permitting has been slow and drilling leases off the east coast stopped cold.
And, then there's the Keystone Pipeline, a prime opportunity for boosting supply the President has punted until after the election.
Even if the process of building the pipeline were approved and started today, it would take two years for refined product to reach our gas stations.
And that means the President has delayed the prospect of supply relief for three years!
Look, some people in this country are already benefitting from increased supply. That is the folks in the west enjoying the benefits of Canadian oil already coming in this country and increased North Dakota production.
Wyoming at $3.02... Colorado at $3.07 and Utah at $3.12.
Look, we know that the President wants to stop using oil to fuel our economy, but the world hasn't caught up to that vision.
The President chastises us for using a fifth of the world's global oil production. That's nothing to be embarrassed about!
We have the largest economy on the planet, and the most productive people.
In fact, we're finding more oil and gas, not less, in our country, and the vehicles we're developing to go all electric still require coal fired electricity plants to recharge.
Mr. President, let the market take care of this. Start putting people ahead of your policy priorities!
We need cheaper gas.