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Monday, March 5, 2012

The Truth About Gas Prices, cont...

March 5th, 2012

As the "conservative" media continues to push last month's RNC talking points, rational actors keep pushing back by stating what are commonly known as facts. I harped on this HERE recently.

Today, the NY Times editors state it plainly:

"There are lots of reasons for the rise in gas prices, but the lack of American production is not one of them. Domestic crude oil production is actually up from 5.4 million barrels a day in 2004 to 5.59 million now; imports have dropped by more than 10 percent in the same period. Despite a temporary slowdown in exploration in the Gulf of Mexico after the BP oil disaster, the number of rigs in American oil fields has quadrupled over three years. There have been new discoveries and the administration has promised to open up more offshore reserves. To say that Mr. Obama has denied industry access is nonsense.

Equally nonsensical is the Republican claim that Mr. Obama’s proposed repeal of $4 billion in annual tax breaks for the oil and gas industry — whose five biggest players posted $137 billion in profits last year — would drive prices upward. As is Newt Gingrich’s claim that a proposal now taking shape in the Environmental Protection Agency, and fiercely opposed by refiners, to lower the sulfur content in gasoline would add 25 cents to the cost of a gallon. Agency experts say it would add about a penny.

The truth is that oil prices are set on world markets by forces largely beyond America’s control."

Sen Sanders is leading the fight against unbridled speculation HERE.

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