The Obama administration’s War on US Energy, and failed foreign policy, have started to take hold as gas prices climb to record levels, creating panic, long lines, and gas shortages.
Gas Prices Reach All-Time High As Obama’s Inept Energy Policy Takes Hold
When Obama took office in January of 2009, gas was only $1.84 a gallon, and since his inauguration Obama’s energy policies have badly damaged Americas ability to provide more domestically produced energy, and have made us much more dependent on foreign energy suppliers.
Obama actually stated that he waned gas prices to go up, so that Americans would be forced to use less gas, but would have liked the price to go up more gradually, so high gas prices were the Obama administration’s plan from the start.
Gas prices shot up nearly 13 cents in some areas overnight Saturday, fueled by what’s being called “a perfect storm of factors” that drove inventories across California to near-record lows.
The average price for a gallon of regular gasoline in L.A. County was $4.66, up from $4.58 on Friday.
In Orange County, the average is up 20 cents to $4.65, while in the Inland Empire, it’s up to $4.62. The average for the state of California hit $4.61, matching the record highest price set in June 2008.
The price increases could continue for weeks and the average might even break the $5 mark, according to experts.
Refinery and pipeline mishaps, along with the state’s strict pollution limits are all, in part, to blame. They’ve sent wholesale prices soaring to all-time highs this week.
One of the disruptions involved a power outage on Monday at the Exxon Mobil plant in Torrance, which normally produces 150 millions barrels of gas per day.
Additionally, Chevron’s Richmond plant, the largest refinery in Northern California, has been running at reduced capacity since a fire Aug. 6.
At the same time, California refineries have dropped production in recent weeks in anticipation of switching over to a “winter blend” of gasoline, which emits more pollutants, next month.
But California’s summer-blend fuel requirements are in effect in Southern California until Oct. 31.
Because of the spike in wholesale prices, some gas station owners have stopped making purchases to fill their underground tanks.
Mom-and-pop stations are really feeling the squeeze. They’ve had to shut down because they can’t get gas from their regular distributor, or they can’t afford it.
Valero Energy Corp. stopped selling gasoline on the wholesale market in Southern California and is allocating deliveries to customers.
Exxon Mobil Corp. is also rationing fuel to U.S. West Coast terminal customers.
Gas prices in California should continue to rise as retail prices catch up with wholesale prices, analysts say.
“Wholesale prices have gone up $1 a gallon in the last week alone, and retail prices have only followed for 30 cents,” Patrick DeHaan, senior petroleum analyst at GasBuddy.com, told the Daily News.
He said that means there’s still room for gas prices to climb, and he expects that’s exactly what they will do.
Gas prices have already surpassed $5 a gallon at a few filling stations in California, according to GasBuddy.com.
The average price per gallon in California is well above the record high national average price of $4.114 a gallon, which was set in 2008 when oil prices rose to $140 a barrel.
Analysts expect that the surge in California gas prices will retreat sometime in October, though it’s impossible to say exactly when.
Relief could come more quickly if the state’s refineries are allowed to switch to the cheaper winter-grade fuel before the end of October.
The California Independent Oil Marketers Association, which represents wholesale and retail fuel marketers, asked the state Thursday to expedite a waiver allowing for the switch.
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