Friday, April 6, 2012

Obama has just reached my tolerance limits

From: Mike H.
Sent: April 6, 2012
To: undisclosed recipients
Subject: Fw: Obama has just reached my tolerance limits
Obama has just reached my tolerance limits
Folks, Obama has just reached my tolerance limits. The popular media (TV and other standard news outlets), even conservative types, won't call Obama a liar. They use all kinds of terms to avoid that word. However, I am not constrained by their concerns. I'm not going to be fired for telling the truth. He is a liar, a damned liar and every other type of liar that I can think of.

Lie 1. That liar is now trying to take credit for allowing the Keystone pipeline build-out to continue. This is the issue that sent me over the edge. Folks, there are 2 portions to the Keystone Pipeline. The portion of the pipeline that Obama is taking credit for is the portion that he can't stop. Private companies and the states involved decide to go ahead with the pipeline regardless of what Obama wanted when Obama stopped the pipeline. Obama called Democratic Senators and lobbied them to not vote for the Republic Keystone start-up. And, he won. That measure did not pass in the Senate and Keystone was stopped. The portion of the pipeline that the federal government does control is still stopped. He is simply taking false credit for re-election purposes.

Now that I am on a roll, let me address other related pump price issues:

Lie 2. That liar has consistently said that we use 20% of the worlds oil while we only have 2% of the world's oil reserves. He just did a speech where he tried sarcasm to demonstrate to his true believers that if the USA drilled every where, even in the White House lawn, that we would only have 2% of the world's oil reserves. That is just a lie for the benefit of his liberal base. This an election year so he needs his base to believe him. What's the truth? Based on government geological reports we have around 1.4 trillion barrels of recoverable oil. That's about 200 years worth at our current use. And, an estimated 3 million new, high paying, jobs to extract it, etc.

Lie 3. That liar says speculators (I prefer the term investors) cause the price of oil and consequently gasoline prices to be high. Investors use future contracts to speculate (anyone who buys stocks or bonds or mutual funds, etc. also "speculate"). Remember, there are always 2 sides to any future contract - investors that buy future contracts and investors that sell future contracts. And, those investors always switch sides, as they do in the stock market - sometimes buying, sometimes selling. Which speculators is he talking about?? World oil is going to stay high because most, if not all, of the oil producing countries require high oil prices. Russia - Putin needs it for political purposes. Saudi Arabia - needs it for it's citizens because of the fear of the so-called "Arab Spring" effect. North Sea oil is running out. Iran can't sell it's oil. China is buying oil almost as fast as the USA. Remember investors use "FUTURE" contracts. Future means exactly what it implies, the future of oil prices based upon future supply and demand analysis. If oil investors ever thought that the USA was serious about drilling oil, the price of a barrel of oil would plummet overnight. It happened just recently. Remember when , under Bush, oil went to $147/barrel and he opened up offshore drilling (+ USA demand dropped). Oil went to $40 in about 3 months. When Obama took office the gasoline pump price was about $1.90. If Obama seriously pushed oil drilling, those same investors would short the oil market and drive prices down. Oil prices may never again go down to $40 because of the other global supply / demand issues. But $80 oil, could drop gasoline prices a buck. Gasoline pump prices are totally dependent upon the cost of oil. The key word is SERIOUSLY supporting new oil acquisition. Not BS Politics designed for re-election. Oil investors understand BS politicians, it's a way of life in the oil business.

Lie 4. That liar is taking credit for increased USA oil production. Oil production from Federal lands is down 13% since Obama took office. Oil production has increased by virtue of private companies and states allowing new oil extraction with new technologies. These are the same oil extraction technologies that the EPA and other federal government agencies are trying to stop. Thus far, all of the environmental studies by the EPA and states, indicate that these new technologies are safe.

Lie 5. That liar insists that oil companies are gouging the consumer and are getting extraordinary profits because of government subsidies. Subsidies imply that the government is giving the oil companies money or some other financial break. If so, why doesn't Obama stop the subsidies? If the oil companies are gouging the consumer, why as an industry group, are they losing money on refining? Why are they closing refineries? Why are the oil company profit margins way below industries represented by Apple and Microsoft for instance? As I recall they are about twelfth from the top of the industry profit margin list. Why, as an industry, do the oil companies pay the most taxes? What exactly are the subsidies that Obama constantly talk about? Well folks, they just happen to be the same subsidies that all manufacturers receive - depreciation or depletion allowances for income tax purposes are the primary example. Obama talks a good game but he won't support Republican's desire to fix the tax code by eliminating special interest taxes and lowering the tax for all corporations. That is directly attacking the so-called "subsidies". Obama is also trying to get the oil companies to pay an extraordinary profit tax on those so-called gouging profits. Dwell upon this next statement folks. Corporations (all) do not pay taxes. You, the consumer of products, pay those taxes. Corporate taxes, as well as the costs of federal regulations, are all buried in the cost of the products we buy. If Obama is successful in raising taxes on those bad oil companies - gasoline pump prices will go up.

Remember, at the beginning of his term, Obama postulated that his green energy focus would significantly change the energy picture in this country. It certainly did. $1.90 gas at the beginning of his term and, I just paid in So. Oregon (Ashland) and California $4.30. Nevada was a bit cheaper $3.80 - $4.05 depending upon location. Let me ask this very pertinent question - what does solar and wind power have to do with gasoline pump prices? Absolutely nothing!!! How much Bio-fuel do we use to offset gasoline? Virtually none!!! I did some investigating about bio-diesel for my truck. If I used it for an extensive period I would wreck my motor. Do you have any idea what a Cummins diesel engine costs? Steven Chu, our celebrated Energy Dept. leader just said, when asked about his success at reducing gasoline pump prices by a congressman, he deserves an A. What world does he live in? Certainly not 2012 in the USA. Maybe he is grading himself on "wishful thinking". That statement sounds so stupid, but folks I am not kidding, look it up on-line - it's the truth. Can anyone describe an energy success during the Obama administration? I can describe many failures including Solyndra and many other failed companies.

After 3 years of Obama we are left with an energy disaster and a president whose only recourse is to lie so that he can get re-elected. I don't want this mess to continue for another 4 years. Do you?



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