After 1 month: Russia, Ukraine, NATO, sanctions

[Res Ipsa]

Gas prices going up? I think we're collectively willing to make our donation to the effort to relieve Ukraine at the pump.

Gas prices were going up long before the Russian invasion of Ukraine and even longer before acutal sanctions on Russia oil were placed. Gas prices are high because of climate change policy, which turned out to not be as popular as Democrats thought. I must hand it to the Democrats. They do a great job using global events like COVID or the Russian invasion to turn around a what would have been disastrous elections for them.

Ajax, which climate change policies increased the price of gasoline?

Gasoline prices are high because of supply and demand:

1. OPEC cut production during the pandemic.
2. Demand has spiked as a result of the U.S. and Western Europe declaring that they are "done" with COVID.
3. Uncertainty resulting from Putin's war has increased demand as demand for oil futures increase to lock in future supplies.
4. As more nations boycott Russian oil, there is increased demand for non-Russian crude oil.
5. Two other sources of oil are off the table for the U.S. because of boycotts: Iran and Venezuela.

None of this has anything to do with climate change policy. Depending on the nature of the policy, it can result in increases or decreases in the cost of petroleum. For example, subsidizing non-fossil fuel production source of energy will lower their cost, which will cause a decrease in the quantity demanded of oil as wind, solar, etc. are substituted for fossil fuel use. On the other hand, increasing fuel taxes would increase their price.

[ajax18]

Gas prices were going up long before the Russian invasion of Ukraine and even longer before acutal sanctions on Russia oil were placed. Gas prices are high because of climate change policy, which turned out to not be as popular as Democrats thought. I must hand it to the Democrats. They do a great job using global events like COVID or the Russian invasion to turn around a what would have been disastrous elections for them.

Ajax, which climate change policies increased the price of gasoline?

Gasoline prices are high because of supply and demand:

1. OPEC cut production during the pandemic.
2. Demand has spiked as a result of the U.S. and Western Europe declaring that they are "done" with COVID.
3. Uncertainty resulting from Putin's war has increased demand as demand for oil futures increase to lock in future supplies.
4. As more nations boycott Russian oil, there is increased demand for non-Russian crude oil.
5. Two other sources of oil are off the table for the U.S. because of boycotts: Iran and Venezuela.

None of this has anything to do with climate change policy. Depending on the nature of the policy, it can result in increases or decreases in the cost of petroleum. For example, subsidizing non-fossil fuel production source of energy will lower their cost, which will cause a decrease in the quantity demanded of oil as wind, solar, etc. are substituted for fossil fuel use. On the other hand, increasing fuel taxes would increase their price.

One point is that if we were to get rid of the gas tax, we could cut gasoline prices right now. So why won't the Democrats do this? The reason drilling permits are not being filled by investors is because investors are rightly frightened off by the left wing Democrats that are in control. After seeing the Keystone pipeline get shut down immediately, investors aren't going to invest in petroleum.

Given your list of potential reasons for the spiking price of gas, would you agree it's unfair to say that gasoline prices are Russias fault, especially when gasoline prices were already pushing $4/gallon here and $7/gallon on the left coast before the Russians invaded Ukraine?

[canpakes]

Gas prices were going up long before the Russian invasion of Ukraine and even longer before acutal sanctions on Russia oil were placed. Gas prices are high because of climate change policy, which turned out to not be as popular as Democrats thought.

What were those policies?

[Res Ipsa]

Ajax, which climate change policies increased the price of gasoline?

Gasoline prices are high because of supply and demand:

1. OPEC cut production during the pandemic.
2. Demand has spiked as a result of the U.S. and Western Europe declaring that they are "done" with COVID.
3. Uncertainty resulting from Putin's war has increased demand as demand for oil futures increase to lock in future supplies.
4. As more nations boycott Russian oil, there is increased demand for non-Russian crude oil.
5. Two other sources of oil are off the table for the U.S. because of boycotts: Iran and Venezuela.

None of this has anything to do with climate change policy. Depending on the nature of the policy, it can result in increases or decreases in the cost of petroleum. For example, subsidizing non-fossil fuel production source of energy will lower their cost, which will cause a decrease in the quantity demanded of oil as wind, solar, etc. are substituted for fossil fuel use. On the other hand, increasing fuel taxes would increase their price.

One point is that if we were to get rid of the gas tax, we could cut gasoline prices right now. So why won't the Democrats do this? The reason drilling permits are not being filled by investors is because investors are rightly frightened off by the left wing Democrats that are in control. After seeing the Keystone pipeline get shut down immediately, investors aren't going to invest in petroleum.

Given your list of potential reasons for the spiking price of gas, would you agree it's unfair to say that gasoline prices are Russias fault, especially when gasoline prices were already pushing $4/gallon here and $7/gallon on the left coast before the Russians invaded Ukraine?

The federal gas tax has been unchanged for almost 30 years. Over that period, its value has almost been cut in half. It goes into a fund for highways and mass transit. But the amount of revenues has been unable to keep up with spending since 2008. And we haven’t kept up with the spending necessary to prevent our highway infrastructure from degrading.

So, are you wanting to increase the deficit even faster or just let the highways go to hell? Or which other federal tax should we increase?

Cutting gas taxes is penny foolish and pound foolish. Right now, the high price of gas is due, in part, to spiking demand. Cutting the gas tax cause the demand to increase and drive the price higher. In other words, if the federal government drops its gas tax, you won’t even get the benefit of the full 20 cents. Everybody in the chain of production will take a slice and you’ll get what’s left.

Right now, we’re at a 50 year low in the unemployment rate and in the number of people receiving unemployment benefits. The economy doesn’t need to be juiced any more than it is.

But, even so, what you’re seeing is the future. Oil prices are going to go up as the cost to harvest the marginal barrel of oil continues to increase. This is the market doing its thing.

[Gadianton]

...investors are rightly frightened off by the left wing Democrats...

You really are living in your own world, aren't you Ajax?

The goal of oil companies is no different than the goal of optometrists: to make money. Why should Texas oil companies shoot themselves in the foot by hastening to dig? They're already having a difficult time paying workers to keep output going where it's at. How are they going to pay more workers if they over produce, just to make oil cheap (assuming they could produce enough)? Are oil companies charities or something? Do you hate your home state?

Fear of democrat restrictions isn't a factor here, Ajax. In fact, it's your side actually that's been proposing oil company profits are taxed to give back to the poor. lol. As the days tick by, it's Ajax, A-Mike, Markk style Republicans who are the ones looking more and more like socialists.

Quit being so entitled, Ajax, the world doesn't owe you cheap gas.

[Jersey Girl]

Gas prices going up? I think we're collectively willing to make our donation to the effort to relieve Ukraine at the pump.

Gas prices were going up long before the Russian invasion of Ukraine and even longer before acutal sanctions on Russia oil were placed. Gas prices are high because of climate change policy, which turned out to not be as popular as Democrats thought. I must hand it to the Democrats. They do a great job using global events like COVID or the Russian invasion to turn around a what would have been disastrous elections for them.

Out of all the thoughts I expressed in my post you chose this. Read the room.

[ajax18]

...investors are rightly frightened off by the left wing Democrats...

You really are living in your own world, aren't you Ajax?

The goal of oil companies is no different than the goal of optometrists: to make money. Why should Texas oil companies shoot themselves in the foot by hastening to dig? They're already having a difficult time paying workers to keep output going where it's at. How are they going to pay more workers if they over produce, just to make oil cheap (assuming they could produce enough)? Are oil companies charities or something? Do you hate your home state?

Fear of democrat restrictions isn't a factor here, Ajax. In fact, it's your side actually that's been proposing oil company profits are taxed to give back to the poor. lol. As the days tick by, it's Ajax, A-Mike, Markk style Republicans who are the ones looking more and more like socialists.

Quit being so entitled, Ajax, the world doesn't owe you cheap gas.

You're preaching stakeholder capitalism. Now I understand. You're Larry Fink aren't you Gad?

[Gadianton]

No, in this post I'm preaching the reality of the market. The price is the price, Ajax, you can re-arrange how you take the hit with policy, but you can't avoid taking the hit.

In previous posts I wasn't saying that people need to be stakeholders, you don't need to believe in your state as I do, Ajax, but I do expect some degree of common sense and taking advantage of arbitrage opportunity. If somebody as profoundly intelligent as Donald Trump ensures gas prices are going to head for the moon under a democrat, then you should have dumped every spare cent you had into oil. That's not investment, Ajax, that's identifying radical pricing mistakes and correcting them. To the degree you would have felt nervous opening your wallet is the degree to which you didn't really believe Trump's prediction was more than just hot air that anybody could spout.

Investment entails risk, Ajax, arbitrage doesn't. I would never tell anyone they are wrong for not wanting to take a risk.

[honorentheos]

Gas prices going up? I think we're collectively willing to make our donation to the effort to relieve Ukraine at the pump.

Gas prices were going up long before the Russian invasion of Ukraine and even longer before acutal sanctions on Russia oil were placed. Gas prices are high because of climate change policy, which turned out to not be as popular as Democrats thought. I must hand it to the Democrats. They do a great job using global events like COVID or the Russian invasion to turn around a what would have been disastrous elections for them.

Ajax, does it occur to you that all the consequences being realized we said would follow Trump running up the charges on the nations credit card, so to speak, is an indictment of Trump? You see the Trump years as good the same way a household blowing through credit to live the high life would see the time before the bills come due and the creditors come knocking as good.

Can you work on developing a long view understanding of the consequences of decisions, please? Fixing something that's broken can be painful. But it is better than living as if the thing that is broken isn't real...and the latter is Trump's philosophy. He's lived a life of outrunning consequences that is movie-worthy but the trail of those caught in the wake who end up paying for it now grew to encompass the nation if not the world. Come on, man.

[ajax18]

Ajax, does it occur to you that all the consequences being realized we said would follow Trump running up the charges on the nations credit card, so to speak, is an indictment of Trump

The only running up of the credit card under Trump was due to the stupid COVID shutdown. Donald Trump didn't get us into war. He actually helped bring peace in the mideast. He renegotiated trade agreements in favor of American citizens. He did everything he could to enforce the border. He reduced unemployment and shrunk the welfare state.

Had he remained in office with a Republican controlled Congress, the keystone pipeline would be completed, gas would still be $2/gallon, our trade deficit with China would be shrinking, inflation would not be where it is, a merit based immigration system would be in place, the stock market would be up, Afghanistan would still be under American control, and Russia would have never dared to invade Ukraine.