Gas Prices: We Are Being Played by the Government

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As gas prices rise and demand decreases due to economic conditions, the following excerpts show how energy and food are being used by the government to manipulate these commodities for their own purposes. The Obama administration’s views on energy have been inconsistent and without logic. The coal industry has been decimated by government regulations and labor unions to make the cost of this form of energy necessarily skyrocket. The law requires 40% of corn production in the United States to be used to make ethanol. The energy required to make a gallon of ethanol is approximately the same energy that is released in its combustion so the net energy production is zero. The reality is that ethanol reduces the mileage per gallon so the average American must buy about 10% more ethanol based gasoline to drive the same amount of miles.

Who wins? The government collects another 10% in taxes. What are the consequences?

1. Reduced mileage/increased energy usage
2. Increased taxes
3. Motor/hose corrosion
4. Higher corn prices
5. Higher livestock prices

We are being played by the government but the real goal is control. Whoever controls your food and energy controls you. Liberty guarantees our freedom and it will be defended. How do I know? Because the government understands this core founding principle and knows we will defend ourselves but more importantly, we will defend Liberty. Do you really think the National Weather Service will be receiving those hollow point bullets?

David DeGerolamo

White House studying potential oil reserve release

The White House is “dusting off old plans” for a potential release of oil reserves to dampen prices and prevent high energy costs from undermining sanctions against Iran, a source with knowledge of the situation said on Thursday.

U.S. officials will monitor market conditions over the next few weeks, watching whether gasoline prices fall after the September 3 Labor Day holiday, as they historically do, the source said.

It was too early to detail the size of any release from the U.S. Strategic Petroleum Reserve and other international stockpiles if a decision to proceed was taken, the source said.

Oil prices have surged in recent weeks, with Brent crude prices closing in on $120 a barrel, up sharply from below $90 a barrel in June. The United States and other Group of Eight countries studied a potential oil release in the spring but shelved the plans when prices dropped.


Exports of coal and fuels on track to set record

Exports of gasoline, diesel and other fuels are rising because U.S. refiners are able to make the fuels cheaper than almost anywhere in the world. That’s because they have been able to access some of the cheapest crude oil. North American crude supplies are rising thanks to booming oil production in Canada, North Dakota, Texas and elsewhere. Also refiners that burn natural gas to help cook the crude into gasoline, diesel, jet fuel and heating oil are enjoying some of the cheapest natural gas prices in the world.

Exports of petroleum products, which set an annual record last year and were the single biggest export by value, are up 11 percent compared with a year ago. Much of the fuels that are exported are made with imported oil, and the U.S. remains the world’s biggest oil importer.


UN Begs US to Stop Corn-Based Ethanol Production During Drought

Here’s a classic case of what’s good for the US being terrible for the rest of the world. That typically does not lead to good outcomes for the world. Corn-based ethanol fails on its own merits. The energy used in production far exceeds the energy savings from using ethanol over fossil fuel-based energy. The biofuel standards could be reached by less invasive sources like switchgrass and other natural sources. Converting so much corn into fuel at a time of a massive corn shortage makes no sense, not only for the world, but also for domestic livestock producers suffering from a decline in feed, domestic food producers who use corn as an ingredient, and so on.Under US law, 40% of the harvest must be used to make biofuel, a quota which the UN says could contribute to a food crisis around the world.

The United Nations has urged the US to stop this ethanol production mandate, citing the likelihood of elevated global food costs.

A drought and heatwave across the US has destroyed much of the country’s corn crop, driving up prices.

The US argues that producing much of its own fuel, rather than importing it, is good for the country […]

Writing in the Financial Times, the director general of the United Nations’ Food and Agriculture Organization (FAO), Jose Graziano da Silva, said suspension of the quota would allow more of the crop to be diverted for food production.

“The worst drought for 50 years is inflicting huge damage on the US maize crop, with serious consequences for the overall international food supply.

“The situation reminds us that even the most advanced agricultural systems are subject to the vagaries of the weather, leading to volatility in supplies and prices, not just on domestic markets, but also internationally.”


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[…] price of gasoline keeps rising as consumption decreases. My previous article outlining how our government is “playing” us with their energy policy is […]