[Vision2020] Gas UP .08 A Gallon

[B.C. Strand]

Pat Krout wrote:

"Since all the economists that I read say that the president does not 
have much to say about the price of crude oil or gas I'd like you to 
explain why this is the presidents (whoever that might be) problem. Did 
you also blaime Clinton when the price of things changed...or did you 
blame NAFTA?"

Pat,

I would agree that that the President does not have a lot to say about 
the price of crude oil. I would strongly disagree if you believe that 
can not affect it - either positively or negatively. Attached is the an 
excerpt from "This Week In Petroleum" as publised weekly by DOE (I would 
recommend this as weekly reading for anyone who wants to keep informed 
on the US petroleum situation). I believe that the President can affect 
the some of the situations listed below.

Bill Strand

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

"Given the current tight global oil market, any hiccup in oil supplies, 
whether real or perceived, can have an exaggerated impact on oil prices. 
These events can come in the form of natural disasters (e.g., 
hurricanes), infrastructure problems (e.g., refinery or pipeline 
outages), or supply disruptions overseas, which sometimes result from 
political situations. There are many political situations in the world 
that have the potential to affect, or have already affected oil prices 
at one time or another. A partial list of these would include: problems 
associated with the alleged back taxes owed by Yukos, a major Russian 
oil firm; turmoil in the Delta region in Nigeria; the instability 
related to Iraqi infrastructure; continuing concerns over the lack of 
oil sector investment in Venezuela from President Chavez’ 
administration; and concerns over the potential of escalating tensions 
in Iran regarding their nuclear capability."