In the second presidential debate of 2012 an attendee asked President Obama, “Your energy secretary, Steven Chu, has now been on record three times stating ‘It’s not policy of this department to help lower gas prices.’ Do you agree with Secretary Chu, that this is not the job of the Energy Department?” The question went essentially unanswered as both candidates took the opportunity instead to promote their energy platforms.
The answer to this question may be simple, as OurEnergyPolicy.org Expert Joel Brown explains in a tweet: “The unanswered question answered: the DOE does NOT have the charge to lower gasoline prices. Its impact is at the leading edge, not retail.” Charles Riley of CNN Money further explains, “Politicians and the government, for the most part, have very little real control over gasoline prices,” except through measures such as tapping the strategic petroleum reserve.
With the government’s inability to significantly reduce oil prices, what policies might be pursued to alleviate pressure at the pump? What effect do gas prices have on the American economy? How well can the free market address the problem of high gasoline prices?
Speaking broadly to the US about energy (with accuracy) requires something that is in short supply domestically: an actual awareness of where the US stands in relation to the rest… Read more »
Gas prices certainly should be one of the performance metrics which US government policy should address. It matters to a lot of people, and might well hurt our economy once… Read more »
Additional comment — the best path in the long-term, in my view, would be to allow a moderate, steady rise in the world oil price and the price of gasoline,… Read more »
The United States has 2% of the world’s oil reserves and 9% of the world’s oil production, according to BP’s annual survey. Kuwait, Brazil, Mexico, United Arab Emirates, Canada, Iran,… Read more »
The President and therefore the Energy Secretary has little to do concerning gas prices directly. The market for oil is a competive global market and producers/refiners go with the price.… Read more »
“What we have here is a failure to communicate.” Strother Martin, costarring in “Cool Hand Luke, 1967. Although the last 4 decades have served to point us all in the… Read more »
[…] The Presidential Debate and Gas Prices: With the government’s inability to significantly reduce oil prices, what policies might be pursued… […]
Our earlier comments implicitly assumed a close connection between the world oil price (best measured as the Brent price lately) and US gasoline prices. Data from EIA, among other things,… Read more »
Paul, perhaps you misunderstood my comment. The recent press that gasoline prices received was about a sudden price spike, in some cases north of $5/gal. in California. That the spike… Read more »
Joel, I did not say anything specifically about your comment. I am somewhat surprised and saddened that you would post a comment specifically dedicated to accusing me of misunderstanding it.… Read more »
Paul, I’m sorry you thought that was an ad hominem attack as opposed to a clarification. If I’ve caused you to take offense, I do beg your pardon, as absolutely… Read more »