Obama's Oil Gambit

Oil is definitely the Obama Administration's trump card. The price of gasoline and oil affects every single American to a greater or lesser effect. The most obvious time that this has happened in the past was right after the tragedy in the Gulf with BP's Deepwater Horizon. Because of this, we had a 6 month moratorium on drilling off the US coasts. This was evidently supported by a group of scientists as cited in a White House report. This "report" twisted the recommendations of the group of scientists and it caused a bit of controversy.

Another fun one is Keystone - and this is one that has been going on for much longer than it should have been... because it is being politicized. A majority of Americans believe that the pipeline is a great idea and should be executed as soon asa possible. But, Obama's administration is talking on and on about how risky it is for the environment; that we can't afford to put nature in jeopardy. Right.

The first big reason Obama has declined to get Keystone on the move is he needed Warren Buffett. Mr. Buffett is quite an influential character in the world. During the end of 2011 and generally most of Obama's reign, there has been a war on the wealthy. To get them to pay their fair share. Who best to support Obama in this and call for higher taxes than Buffet? Right, so, what does Buffett have to gain from supporting Obama (there is always a payment)? Keystone. A delay in Keystone is worth billions to Buffett as he controls the major mode of transportation from the Canadian oil sands to the Gulf with his rail road network. Love it.

So, gas prices are sky rocketing. In a sense. And, Obama is going around preaching how we can't just pump more oil. We're doing all that we can! America it is time to grow up, he claims. Duplicity again. How... normal.

“And, yes, that means we make investments in stuff that is new and we stop subsidizing stuff that’s old... The current members of the flat earth society in Congress, they would rather see us continue to provide $4 billion — $4 billion — in tax subsidies, tax giveaways, to the oil companies,” Mr. Obama said. “Every time you fill up at the pump, they’re making money,” he added. [comment:  I love how Obama and his lawyer education is such a rudimentary speaker. Always saying "stuff" and "new" or "old". BTW, I do despise all subsidies. They should not be legal.]

We're doing all we can to lower fuel prices, he claims. Then he goes off and says no drilling in the Gulf and no Keystone. (now, many rigs have left the Gulf and are elsewhere in the world. Making money for OTHER countries... definitely Brazil, but Chinese or Middle Eastern companies also drill around the world. Nice way to hide the redistribution of US dollars to the world, yes?)

So, what will happen in the coming months. Let's see... Obama will hold off on Keystone until he gets all his environmentalists to contribute to his campaign. Then, as we get close to the election, but far enough away so that oil speculation can have an affect on oil prices, he's going to approve Keystone.  Watch and see.

The Oil Gambit.