Obama Making Us More Dependent on Foreign Oil

Is the Middle East the only reason gasoline prices are rising and how much damage will they do to our economy?

Gasoline and diesel prices are going up. That is a certain. The issue is how high is high and how long is long? Why?

Expectations of political instability in the North Africa and the Middle East are factors which cause the price of crude oil to rise, but the reality is the Obama Administration is doing serious damage to our essential domestic oil industry . The Administration is making our nation more and more dependent on imported foreign crude oil through increased regulations, taxes, and litigation.

Raise your hand if your administration’s policies have worsened,

rather than helped, America’s dependence on foreign oil.

The Obama Administration has in effect shut down exploration and drilling off the Atlantic, Pacific, Alaskan, and Eastern Gulf of Mexico coasts. The EPA is studying restrictions on shale oil and gas fracing. The Administration is also planning massive tax increases on “Big Oil,” which is owned by many little stockholders and service individual consumers. Under the Obama Administration prepare for much higher fuel costs. Our nation is highly dependent on foreign crude oil, in the range of 60% of our crude oil is imported.

Let us look at the actual numbers of higher unleaded gasoline costs. With every $1 per barrel increase in crude oil prices you should expect a $0.03 increase in unleaded gasoline prices. Presuppose an average vehicle is driven 13,000 miles annually, with fuel efficiency 20 mph, with an average 650 gallons consumed annual. For a one car family that would be 650 gallons, a two car family 1,300 gallons, and a three car family 1,950 gallons consumed annually.

Crude oil price at $90 a barrel unleaded gasoline would be $3.26 gallon; $100 barrel gasoline would be $3.56; $110 barrel gasoline would be $3.86; $120 barrel $4.16 gasoline; $130 barrel gasoline would be $4.46; $140 barrel gasoline would be $4.76; $150 barrel gasoline would be $5.06; and $200 barrel gasoline would be $6.56.

These prices will vary state by state with local taxes. The distance driven will vary state by state, especially those cities and states which have few mass transportation systems.

Crude Oil price spikes have preceded five of the last six recessions.