Rep. Bachmann Claims Offshore Drilling And Her Own Determination Lowered Gas Prices
Rep. Bachmann Claims Offshore Drilling And Her Own Determination Lowered Gas Prices
According to the American Automobile Association (AAA), the nationwide average for a gallon of gas has fallen to $2.50 a gallon, which is a 19-month low. Rep. Michele Bachmann (R-MN) has two simple explanations for the drop: offshore drilling and her own magical influence over the price of gas.
As the Minnesota Independent reported, “In an Oct. 29 campaign event with Norm Coleman, Bachmann took credit for gas prices that in her district were $2.04 a gallon.” “That was my goal. When I started out early this year, my goal was to get to $2 — oh they gave me grief for it,” she said.
Meanwhile, on her Townhall blog Bachmann wrote:
What happened the past few months to lower the cost of gas? Several things, but perhaps most importantly, Congress has let the ban on offshore oil exploration and oil shale expire, sending a signal to the markets that the United States may finally be ready to up their supply.
To credit the mere expiration of the offshore drilling ban - or her own personal influence - as the reason for dropping prices is patently ridiculous. Bachmann completely failed to note the “historic pullback in consumption by U.S. motorists this year.” CNN Money noted that there was “a 5.3% decline in demand for motor gasoline over the four weeks ended Oct. 3, compared to a year earlier.”
Also, the economic crisis has solidified the belief that demand will not rise anytime soon. The U.S. economy contracted by 0.3 percent in the last quarter, which is “reinforcing expectations of a prolonged slump in demand.”
Unless Bachmann is personally taking credit for driving the demand for gasoline down across the country, she might want to find another accomplishment to crow about.
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5 Responses to “Rep. Bachmann Claims Offshore Drilling And Her Own Determination Lowered Gas Prices”
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Wow, the bar is really low when the people talking about supply & demand, pay no attention to actual supply & demand.
It took six months of declining demand for gasoline to stop prices from rising and turn downward. Here’s what Micele missed:
The first week of October saw demand for gas 9.5% lower than last year.
September demand for oil dropped 7%
–gas up .91 a gallon from last year
August citizens drove 5.7% less
–gasoline rose $1.00
July consumers drove 3.6% fewer miles
–fuel up by $1.13
June miles driven were 4.7% lower
–gas higher by .30
May auto use fell 3.8%
–fuel up .32
April miles driven dropped 1.8%
—gas up .18
March miles dropped 4.3%
November 1st, 2008 at 1:13 pm–gasoline up .65 per gallon
So Michele, in the month before the election gas prices raced downward. Does that mean supply & demand are a coiled spring, when it gets tight enough prices pop one way or another? Horse hockey!
Big oil knows how much gas they’re selling, maybe even on a daily basis. Production has been down relative to last year for two straight quarters. What did prices do that same period? They soared, as demand cratered.
Data shows no relation between price at the pump and miles driven for much of 2008.
November 1st, 2008 at 1:18 pmA question I have is how are the big money boys trying to influence the election, i.e. steer it toward John McCain.
The huge drop in gasoline prices the month before the election could be one indicator.
The over 1,000 point rise in the Dow Industrials this past week takes out some of the economic sting as citizens consider their vote. It happened despite awful economic news.
Did the big boys temporarily remove inflaming economic irritants? Did they provide a balm of Freedhem for John McCain’s Presidential run?
The narrative is in place for a McCain, Truman like upset. Will the hegemonic systems of power deliver? Or do they have it in the bag either way, winning under a red or blue administration? Stay tuned…
November 1st, 2008 at 1:23 pmBachmann Learner Underdrive: Not Taking Care of the People’s Business
November 1st, 2008 at 6:37 pmOPEC cut production 1 million barrels a day because of falling demand. It had nothing to do with either of Michele Bachmann’s reasons.
It had to do with Americans driving less, a phenomena in place for 6 months when Republicans launched their energy protest on a darkened House floor.
November 2nd, 2008 at 12:47 pm