“The recent spike in gasoline prices following that huge spike in 2007, 2008 is a reminder to Americans that the price of gasoline over the long haul should be expected to go up just because of supply and demand issues.”
The above quote was spoken by Steven Chu, Energy Secretary for the Obama Administration in a March 20, 2011 Fox News interview, clearly acknowledging that supply is a part of why our gas prices have climbed. At the time he spoke that, gas was costing on average about $3.54 per gallon.
One year later the average price of a gallon of gas is $3.88 with several areas of the country exceeding $4.00 per gallon and inching closer to $5 a gallon.
Acknowledging that supply has an effect of how much we pay at the pump, we saw Barack Obama down in Brazil in March 2011 telling the Brazilians, “We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.”
Months after being inaugurated, with unemployment already well above 9%, still indicating the importance of supply, Obama, speaking of the Saudi’s was quoted, “In those discussions I will be very honest with Saudi King Abdullah with whom I have developed a good relationship, indicating to him that we are not going to be eliminating our need for oil imports in the immediate future.”
Clearly, in spite of growing calls for more alternative energy sources, even though they have been shown to be inefficient, unreliable and overly expensive, Obama and those in power realize that oil remains our most efficient and economical source of energy available. Several past calls have been made for Middle Eastern countries to increase their oil production, increasing supply and bringing prices down.