The Cost of Libyan Freedom

Thursday, March 3, 2011

Gas prices continue to surge in the USA. Many oil analysts blame the meteoric rise to unrest in Libya which is an OPEC member nation.

Pump prices are the highest in history for early March, jumping 4 cents Thursday. The national average is $3.43 per gallon, according to AAA.

The price of oil has risen 21 percent since Feb. 15th, when Libyan protesters called for the end of the 42 year reign of Moammar Kadafi. Libya rests on the largest oil reserves in Africa. The U.S. imports only a tiny amount of oil from Libya, but it’s still affected by the spike in oil.

Price increases are being seen in everything from airline tickets to the price consumers pay for lettuce, onions, strawberries, avocados, tomatoes, and eggplant.

This entry was posted in Big Oil, Corporate Greed, International News, News, Oil and tagged , , , , . Bookmark the permalink.

25 Responses to The Cost of Libyan Freedom

  1. Arizona Leatherneck says:

    Obama says he’s confident the recovery will survive $4 a gallon gas.

    He’s the only one feeling so glib and chirpy these days. We’re seriously thinking about a move to Nicaragua or Belize in the fall. I have a bad feeling about the next few years and I want to be better positioned for what I see as the collapse of the US monetary system.

    Glad to see you’re blogging again.

  2. Randy Arroyo says:

    I hear you, Arizona. In the school district where I live the district is so flat broke that they’re reducing the amount they spend on each student from $115 a day to $19 a day and the parents are fine with it. As long as the Feds don’t cut military spending, they’re happy. America’s time has passed.

  3. Jolly Roger says:

    America’s time passed when the Klanbaggers and their SCOTUS allies imposed an illegal regime on us. This country, no longer being legitimate, might as well split up. The pieces will do better by themselves than the whole ever will.

  4. Idaho Librul says:

    The last, remaining low hanging fruit is people.

    There is nothing left to cut. Sure, we could cut the military and close a few of the 900 bases we maintain for no reason around the globe but then we would be forced to admit we’re not the big dog on the block any longer and this won’t happen.

    The IMF is calling on a new currency to base world currency on. I wonder if it will be the Euro or the Yuan? All I know is, the Greenback isn’t wanted or needed now.

    Who wants a currency standard based on a currency steeped in debt?

  5. Woodcliffe says:

    There’s a rumor going around that has the GOP pressuring Obama to open the strategic, petroleum reserves.

    The funny thing is, this is the role the Dems played back in ’08 when they pressured (and failed) to push Bush to open the stockpile when retail gas prices hit $4.68 a gallon. My prediction is, Obama will oppose the call of tap the reserves and like any good friend to Big Oil, will turn a blind eye to the economic pain high gas prices are causing for millions of Americans rattled by the recession and 10% joblessness.

    Obama is a friend to business first, the military second, and the American public third.

  6. Arizona Leatherneck and Woodcliffe,

    Both Saudi Arabia and Mexico are starting to pump sea water.

    This bodes very badly for the American consumer. Some say the solution is more public transit but goods and services can’t travel on subways and rail. Add to this the explosive growth in the Chinese economy and we had best get comfortable with our seat at the back of the bus.

  7. Marcus Ybanez says:

    When you stop to think Pemex’s vast Cantarell field went from optimum capacity in 1979 to the first appearances of sea water in 2010, you realize how grave the problem of peak oil is for the world. Think Mexico is in turmoil now with the drug cartels?

    Ya’ ain’t seen nothing yet.

  8. retahyajyajav says:

    Mexico’s wealth comes from just one oil field. If Cantarell keeps declining, where will Mexico get its revenue from? If you guessed narco drugs, you get the gold ribbon.

  9. Brigadoon says:

    Oil is up to $104.29 a barrel today. Why? Production levels in Libya remain changed. There is no reason to justify an increase of $22 a barrel since January 1st. Obama had better order the release of oil from the strategic reserves or the American public will call for his impeachment. People are hurting and we can’t absorb this spike in energy costs on top of all the other cost increases.

  10. Rachel says:

    We lack an energy policy in America. This nonsense of skyrocketing oil prices have been part of the national landscape for fifty years. Clinton was sensible when he released a portion of the strategic oil reserves and it flooded the market with crude. OPEC was forced to lower their prices and a continuation of Poppy Bush’s recession was avoided. I would be stunned if Obama showed similar leadership. He’s a wuss and a tool for Wall Street.

  11. Matteo says:

    Morris Bechloss says crude is going to $150 a barrel by July, 2011. This means $5-to-$7 a gallon to follow.

    By the numbers:

    On the New York Mercantile Exchange, U.S. light, sweet crude [CLCV1 104.65 2.74 (+2.69%) ] for April delivery settled at $104.42 a barrel, up $2.51 or 2.46 percent, the highest since the Sept. 26, 2008, close at $106.89. The contract traded from $101.54 to $104.60.

    For the week, Nymex front-month crude gained $6.54, or 6.7 percent, after rising $11.68, or 13.5 percent, in the week to Feb. 25.

    In London, Brent crude [LCOCV1 115.93 1.14 (+0.99%) ] futures for April delivery settled at $115.97 a barrel, gaining $1.18, or 1.03 percent, after trading from $114.79 to $116.49.

    For the week, front-month Brent rose $3.83, or 3.42 percent, after surging $9.62, or 9.38 percent, in the week to Feb. 25.

    Brent’s premium to its U.S. counterpart was just above $12 a barrel, down about 77 cents from the previous session and well below last week’s record $16.91.

  12. Bill Hussein O'Reilly says:

    Who needs oil? The US of A and China. So what are we waiting for???

    Washington and Beijing need to formulate a military plan of attack to invade and occupy all the OPEC nations and take what we need. Stop all this playing nice guy with these towel headed bastards. You think OPEC gives a shit about us? This is war, baby!

  13. Chad Lebanon says:

    “Washington and Beijing need to formulate a military plan of attack to invade and occupy all the OPEC nations and take what we need.”

    Isn’t this why the U.S. invaded and occupied Iraq a decade ago? 😉

  14. Randy Arroyo says:

    Try $4.89 a gallon in West Covina. Everyone from florists, to realtors, to students are bleeding money to pay Big Oil. It would be refreshing to hear something from our feckless president. After all, he’s going to ask for our vote in twenty-one months.

  15. Scott Dancer says:

    I wish I could ditch my car and take rail but, in my profession, it isn’t a realistic option.

    You don’t have the option of saying to clients, “Take Bus 1A and get off at Oak Street and 1st. I’ll meet you at the property at 1p.m..” I would be laughed out of the industry and unemployed.

    For the first time, I saw gas today for $4.09 a gallon. It looks like $5 a gallon gas will be here sooner than later.

    President Obama needs to man up and make some stark decisions and this includes opening the strategic petroleum reserves until the situation in Libya is resolved.

    But knowing this country, we will send in the military before Obama floods the retail consumer market with our oil stockpile.

  16. feminazi says:

    You guys made it! I hope it was an enjoyable journey. You left the NE at the right time. Gas prices have hit a truly obscene level and with no logical or justifiable cause. The speculators are controlling the world now and will ruin the tenuous recovery from the recession.

  17. Estacada says:

    If Pootie Tang embraced Bill Clinton instead of Ronald Reagan, he would do as Clinton did and open the strategic oil reserves to off-set the criminally high prices OPEC and Wall Street are responsible for perpetrating on the country.

    But Pootie Tang is a Republican down to his bone marrow and will turn a blind eye and deaf ear to the pain $4 a gallon gas is causing. He doesn’t give a shit about people who aren’t rich. I can’t wait to vote his black ass out of office in 2012.

    Nothing will make me vote to reelect Obama.

  18. Jolly Roger says:

    Goods, as a matter of fact, most certainly CAN travel by rail. Before we abandoned our rail system, the trains used to stop in just about every town.

  19. Big Hank says:

    Obama and his wife eat White Pizza with Arugula while 98% of Americans eat Pizza Hut and Papa John.

    It’s the ultimate disconnect that always happens when you get elected president and move to 1600 Pennsylvania Avenue. The possible exception was John F. Kennedy who had Papa Joe breathing down his back as a reminder that of more is expected of those who have more.

  20. Gleneagle says:

    If the Saudis are hitting sea water, we had better get serious about finding renewable, non-fossil fuel or the future is going to be bleak.

  21. Shayne K. says:

    It’s comforting to know that as energy prices tear at the fundamentals of the US economy, Barry is spending the day playing golf.

    What dopes we were to elect him.

  22. libhomo says:

    Expanding rail transportation and forcing retailers to sell more American goods would do wonders. We will need to take these steps in the long run.

    The short term causes of the current spike include the GOP victories in 2010 and massive speculation by the rich in oil futures instead of investment into the real economy. Libya is playing a role too, but it isn’t the only thing.

  23. Infidel753 says:

    If you think the Libyan revolution is driving up oil prices, just wait until Saudi Arabia erupts. It’s already starting.

    This is something we have to go through. There’s no natural right to a prosperity that’s based on the denial of freedom to others. Eventually things will settle down. Whoever ends up in charge in Libya, Saudi Arabia, and the rest will still sell oil; it’s the basis of their economies.

    And, yes, in the long run we need to make the transition to non-fossil-fuel energy sources. That would be the case even if there were no rebellion in the Arab world.

  24. Pechanga says:

    When and until we get off our asses and discover or create fuel to power our cars and airplanes, we’re stuck with fossil fuels.

    But the current mess in Libya should be a wake up call: we can’t go on like this living from energy crisis to energy crisis. It damages the economy and our way of life. The American culture is one that reacts to a crisis instead of anticipating and avoiding a crisis.

    Species have gone extinct living like this. If we’re going to survive as a nation, we need to wake up and formulate a meaningful energy policy.

  25. fran says:

    From Wiki:
    “Today, high oil revenues and a small population give Libya one of the highest GDPs per capita in Africa and have allowed the Libyan state to provide an extensive level of social security, particularly in the fields of housing and education. Many problems still beset Libya’s economy however; unemployment is the highest in the region at 21%, according to the latest census figures.”

    Well that would explain all the billions M. Gadaffi has stockpiled in personal accounts.
    The US pulls this increased gas price stunt every time anything happens worldwide. Someone, somewhere is getting filthy rich.
    Surely, we must have figured out by now that the deep water BP style drilling is not the way to go.

    Think of how much further along we would be if all the $$ we spent (and continue to spend) on wars were put towards getting off the oil grid.

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