Saturday, February 25, 2012

Increasing Gas Prices

Newt Gingrich criticizes Barack Obama's energy plan. With claims that Obama's plan is "a "stunningly dishonest" plan by an "intellectual left winger" who believes in the "fantasy" of small cars and high gas prices," Gingrich unveiled his own plan, in hopes of gaining some momentum in this presidential race.

Gingrich's plan includes "increased domestic oil and gas production, along with coastal drilling; replacing the Environmental Protection Agency; cutting regulations which hamstring energy production; and approving the 1,700 mile Keystone XL pipeline from Canada to Texas." With this plan, Gingrich promises "$2.50 a gallon gasoline, and about $16 trillion in royalties in the next generation, enough to completely pay off the national debt ... with no tax increase. And at least 8 million new jobs." How realistic do you think this really is?

Furthermore, in retaliation for the European Union's sanction, Iran is refusing to sell oil to France and Britain. However, both countries don't receive a significant amount of oil from Iran, but the psychological effect is clearly showing; oil prices continue to rise, now reaching $125 a barrel. (http://money.cnn.com/2012/02/25/markets/gas_prices/index.htm?hpt=hp_t3)

What are your thoughts on the impact and indicators of rising gas prices on the economy? Do you think that gas prices will continue to rise? Thoughts on Gingrich's plan?

6 comments:

Ivan Wang said...

To "completely pay off the national debt" sounds too good to be true, and unlikely to happen anytime soon, considering the trillions of dollars we owe. I don't believe Gingrich's energy plan will do much to aid our economy, since the majority of the budget is mandatory spending on welfare programs, including Social Security and Medicare. While the proposed Keystone Pipeline extension may add construction jobs and strengthen relations between Canada and the United States, it poses an environmental threat, for it crosses the Ogallala Aquifer. Gas prices are sure to continue to rise in the long run, regardless of smaller domestic projects, but until we take dramatic changes and turn to alternative energy sources, there is not much else we can do.

Rebecca Wysong said...

I do not think that Newt Gingrich's plan will work. The Republicans will not be able to get rid of the EPA because it is important. Also, the United States has lower gas prices than most parts of the world and we are complaning about 4 dollars a gallon. It will help the United States lose our reliance on gasoline and work on reusable energy. It will affect the economy but in the long term, it will be good for the nation, I do not think that Newt Gingrich is thinking about the future effects but the short term effects.

Zhili Liang said...

I believe that Gingrich is probably making up numbers, or skewing numbers, because that seems way too unrealistic. Though, I do agree that there will probably be some short term growth with lower gas prices, but that is not sustainable. I would prefer keeping more of our natural resources, and allow the high gas processes to make us focus on new energy sources.

Andrew Lyu said...

Though Gingrich could work to increase domestic production of oil, simply speaking, presidents generally have very little control over the market price of commodities.

I think the problem with Gingrich's current platform is that he is trying to play off the idea that presidents can affect the price of oil (he is proposing to cut oil prices almost in half), when in reality he will likely not be able to do such a feat as president.

The one thing that the U.S. could do to lower gas prices is increase domestic drilling and allow for the Keystone XL Pipeline to increase production from the Tar Sands. However, with Gingrich's foreign policy platform, especially in the middle east, it seems unlikely to expect a lowering of prices.

Then again, I would like to state that there is a reason the U.S. doesn't want to continue domestic drilling. While domestic drilling has been an option on the table for decades, it simply has not been favorable to us to drill our own oil.

nicoleandrews said...

I feel like Newt Gingrich is making up anything he can to make people happy. A lot of people say things they won't follow through will in the end to get elected.

Even his whole oil plan DID work, this sounds like a temporary thing. There is only so much time before the oil just runs out and we are stuck. I truly think that sticking with research and trying to find new ways of energy is the only way for a good and healthy future.

nicoleandrews said...

I feel like Newt Gingrich is making up anything he can to make people happy. A lot of people say things they won't follow through will in the end to get elected.

Even his whole oil plan DID work, this sounds like a temporary thing. There is only so much time before the oil just runs out and we are stuck. I truly think that sticking with research and trying to find new ways of energy is the only way for a good and healthy future.