Comments on: Gas Drops At Election Time: Coincidence?

Conspiracy Theories Abound Given Uncanny Link Between Bush’s Popularity And Pump Prices

[optimas2]

And, in other news, 42 percent of people are morons.

[ronniehm]

Oh, now we're back to that brilliant strategy where Bush raises the prices to record levels to destroy his approval rating and then lowers the price to make it go up a bit. Nope, can't fake you geniuses out. That must be it.

[edjohn66]

Um, how is this a shock to anyone?

Remember how it came out in the fall of 2004 that Saudi oil ministers were working on a deal to increase production right before the presidential elections?

Bush tried it once and got away with it, why wouldn't he do the same thing again?

[themooniac]

You can't fake me out. I don't think it's any accident prices are falling on gasoline as the election nears. The Republicans' buddies in big oil have reaped a windfall with Bush in office - do you honestly think they are going to give up their boys? You can also bet they have their legion of fat cat buddies pushing the story that this gasoline conspiracy talk is all just craziness. Remember when the administration got caught paying reporters to place favorable stories masquerading as news?? Don't believe me? Google either "White House and fake news" or "Mike Morris and fake news" The GAO called it "covert propaganda" in their report on the subject. See Seattle Times _January 8, 2005.

[ronniehm]

"Exxon reasoned that each year it delayed payment of its obligation, it earns an estimated $400 million from the difference between the statutory interest rate of six percent on judgments and the company's internal return of about 14 percent."

By the way, if you're going to quote an attorney general word for word, just say so. You don't have to add a few words and pretend that you know what they were thinking at Exxon.

[ronniehm]

Oh and the $5 billion judgement against Exxon was thrown out, mainly because they already paid $2.1 billion to clean it up and they paid over a billion to settle various law suits that resulted from the accident. Also, punitive damages that are 17 times actual damages were ruled unconstitutional. But hey, why let the facts get in the way of a good argument?

[ronniehm]

alphaa, you are obviously unaware of the difference between oil prices and oil futures. Please don't bother making economic arguments with me until you know how oil is sold.

[ronniehm]

So today's theory is that Bush is attempting to gain approval by lowering gas prices, but just to make it look good, he let gas prices hit record levels so his approval rating would take an incredible beating. Uh, yeah, that might be it.

[alphaa10-2009]

RonnieHM said-- "Uh yeah, that's a great theory there. Too bad the price of gas actually goes down when the price of oil goes down."
--
The oil industry *does* clumsily trace the value of crude in the world market, but its lack of grace in following the crude price up and down has all the precision of a pickpocket. As you well know, fortunes are made (or lost) in the lag or margin between indicator and following action.

The Exxon Valdez disaster demonstrates that "lag" principle all too well. In 1989, under Bush, Sr., Exxon was fined about $5 billion in damages by an Alaskan jury-- equivalent to about one year's Exxon profits. Closely calculating its burden, Exxon saw it was actually unprofitable to pay its fine and move on. Exxon reasoned that each year it delayed payment of its obligation, it earns an estimated $400 million from the difference between the statutory interest rate of six percent on judgments and the company's internal return of about 14 percent. The 1989 fine is still unpaid.

[alphaa10-2009]

To American consumers, the oil industry persistently explained oil price increases to "market forces"-- essentially a black box type of explanation which is impervious to all verification. We simply had to take their word for it.

But ignorance is fertile ground for fraud and deceit. The ability to set prices without oversight and verification is the ideal situation for a con artist, or predatory monopoly. The oil industry is actutely sensitive to factors in its environment and capable of manipulating them to its advantage at every turn.

Essential to oil monopoly and market manipulation is a cop who looks the other way. At no time, however, has Bush called the oil industry even to account for its price variations, much less rollback the windfall profits made from our wallets and standard of living. Bush will phone us, just as he phones al Maliki from time to time, just to keep hope alive-- but does nothing to bring it closer.

[peterbaldwin-2009]

They are not telling you all of the statistics: 42% believe that the Bush administration is manipulating the price; another 56% believe that the oil companies themselves are manipulating the prices to ward off the possibility humongus excess profits taxes imposed by unpatriotic Democrats; the remaining 2% believe that (1) "market forces" are at work and (2)there is a Santa Claus.

[frankly6]

I don't think this is a coicidence.

[tom_gwynn]

I'd be inclined to believe that that is is "preposterous" as they say, and that supply and demand dictate prices... except that's *exactly* what they said about the electrical energy crisis in California, also during this president's tenure. Anyone remember that? "No evidence of collusion or manipulation" they said. Except that when all Enron's dirty laundry was hung out to dry, it was proven beyond a shadow of a doubt that that is *exactly* what the energy companies were doing. They deliberately shut down plants, caused congestion, and gamed the -bleep- out of the system to line their own pockets. No, this drop in prices is no accident. Someone is pulling strings. Maybe just a little, maybe a lot, but never doubt they are being pulled.

[nothappyatall]

"Supply and demand determine gas prices, he says, and apart from controlling the relatively small strategic petroleum reserve, %u201Cthere%u2019s virtually nothing the president can do to impact oil prices and gas prices.%u201D

Oh SURE, mr OIL TYCOON Man himself and his OIL buddies, the same ones that have raped us all along. Its no secret they love bush and his repubic-CON regime, they made record profits quarter after quarter after quarter while claiming the crude oil COSTS went up, so they can afford a one or two month loss to get their buddies in power Nov7.

Supply and demand eh? so we all dropped our demand by what? 50% in a couple of months? or was it we suddenly found 50% more oil sitting around?
When CLinton was in office and gas prices went up he was calling for an investigation, soon as he did that the prices mysteriously dropped each time. Funny how BUSH seemed to defend the oil company profits.
Watch the prices go right back up after Nov 7th.

[ronniehm]

They ever get rid of the stains under there from the last tenant?

[doyle2006]

while taking a tour of the White House i look under the presidents desk and saw two buttons one said "raise gas prices" and the other said "lower gas prices" so its all TRUE! under that same desk was also all the documents of how the government blew up the twin towers.

[ronniehm]

Uh yeah, that's a great theory there. Too bad the price of gas actually goes down when the price of oil goes down. Apparently every single investor in the world is in on the conspiracy and every OPEC nation agreed to take a loss as well. Fascinating.

[webdepot]

I doubt if the administration, by and of itself, could do anything to force lower gas prices....
The oil companies (you know, those recipients of hundreds of billions in tax breaks from this administration) on the other hand, would be more than happy to operate at a slight loss for a short time in order to assure the Neocons stay in power and hopefully, bestow billions more in tax breaks to the industry. Watch for the quarterly profit reports on the industry.... bet my pay check they are down a chunk...
Cynical??? perhaps.. but after 6 years of Republican lies and corruption, it's gotten to the point where no one can be trusted anymore, least of all an industry that's in bed with a political party... and vice versa.