Gas prices a challenge for Obama

Here we go again. A sudden surge in the price of gasoline and heating oil is followed by reported expressions of frustrated despair by hard-pressed consumers in the midst of silence from the oil companies and abdication of responsibility by the elected and appointed officials of federal and state governments.The price of gasoline is up by about 50 cents in the past month, according to AAA, making the average gallon go for close to $4 per gallon in many parts of the country. Prices are even higher in California. AAA says that this “is the most expensive we’ve seen gasoline in the dead of winter.”Every penny increase in the annual price of gasoline takes over $1.6 billion dollars from the pockets of American consumers. That doesn’t even count the higher prices for heating oil homeowners are paying.There was a time when even a few cents increase in the price of gasoline or natural gas would provoke Congressional investigations, actions by state Attorneys General, and condemnations of the producer countries, the OPEC cartel and Big Oil, from presidents and the heads of the antitrust divisions of the Justice Department or the Federal Trade Commission. That is, until smooth, smiling Ronald Reagan came to Washington, D.C. with his mantra that “government is not the solution; government is the problem.”Well, now the multi-layered petroleum cartel has become institutionalized, having “gotten government off its back” and put the New York Mercantile Exchange speculators at the gaming tables.u u uThere seems to be an adequate supply of crude oil in this recessionary global economy. What could be the cause of this latest price spike? The news media offer a spectrum of possible factors — restrictions on exports of Iranian oil imposed by western governments, instability in Syria and elsewhere in the volatile Middle East, oil hungry China, oil speculators on Wall Street and reduced refinery capacity in the U.S.Each price surge in recent decades seems to have different principal causes. This time it seems to have been precipitated by surging prices of crude – easily manipulated – and in the U.S. the permanent or temporary shutdown for repairs of too many refineries.Believe it or not, the U.S. is now a net refined petroleum importer because of the continuing refusal by the industry to rebuild or expand refinery capacity on the very sites where many refineries have been shut down, often in favor of offshore, cheaper installations.Whenever supply and demand for refined oil products is tight, all it takes is for one or two refineries to suspend operations, other than for repairs, and the prices surge all over the country.This happened in January to a refinery in California, due to a fire, and most prominently the closure of a key refinery in Port Reading, New Jersey, owned by the Hess company. Five dollars a gallon gas “is a real possibility,” John Kilduff, partner at Again Capital, told Yahoo! Finance, adding, “this is partly being driven by the lost refinery capacity of about one million barrels per day…that’s a lot.” (The U.S. consumes about 19 million barrels a day of refined petroleum products.)So what can our so-called representatives in Washington do about a gouge that has angered almost all conservative and liberal consumers? Well, the Democratically-controlled Senate can start by holding investigatory hearings. The President can speak out more forcefully and indicate he may release some of the government’s crude oil reserves to increase supply.u u uHe can order his Justice Department to, at the very least, subpoena pertinent oil industry information for starters.Mr. Obama can forcefully back up Gary Gensler, his appointed, savvy Chairman of the Commodity Futures Trading Commission, who has been trying to rein in excessive speculation that drives up prices and punishes the motoring public.In 2011 CFTC data showed that massive inflows of speculative money drove up prices. At that time, even Goldman Sachs analyst David Greely claimed Wall Street speculation in the futures market were driving up oil prices. Earlier, Rex Tillerson, the head of ExxonMobil, estimated that speculation was responsible for a more than $40 per barrel price increase when oil was just over $100 per barrel. Over the last month crude oil has ranged in price from $93-$120 per barrel.Admiral Hyman Rickover who, more than 40 years ago, wisely said that there should always be government-owned shipyards to provide a yardstick by which to restrain the high prices and cost overruns being charged by private ship builders manufacturing the Navy’s ships. That means, in this oil price context, that the government should own and operate some refineries for the armed forces. Any excess capacity could loosen the market with gasoline and heating oil when the corporate interests maneuver tight supplies for which they get immediately rewarded with cold cash.Were Obama to direct some of his bully pulpit heat on those members of Congress who are marinated in oil, he might find more support from Capitol Hill for all these initiatives.So call the switchboard at the White House comment line (202-456-1111) and tell the president that you are fed up and determined to drive less, carpool and walk more where possible, but that he, the president, must be more aggressive in taking on the staggeringly profitable and tax-favored big oil companies.Consumer advocate and former presidential candidate Ralph Nader grew up in Winsted and is a graduate of The Gilbert School.

Latest News

A new life for Barrington Hall

A new life for Barrington Hall

Dan Baker, left, and Daniel Latzman at Barrington Hall in Great Barrington.

Provided

Barrington Hall in Great Barrington has hosted generations of weddings, proms and community gatherings. When Dan Baker and Daniel Latzman took over the venue last summer, they stepped into that history with a plan not just to preserve it, but to reshape how the space serves the community today.

Barrington Hall is designed for gathering, for shared experience, for the simple act of being together. At a time when connection is often filtered through screens and distraction, their vision is grounded in something simple and increasingly rare: real human connection.

Keep ReadingShow less

Gail Rothschild’s threads of time

Gail Rothschild’s threads of time

Gail Rothschild with her painting “Dead Sea Linen III (73 x 58 inches, 2024, acrylic on canvas.

Natalia Zukerman

There is a moment, looking at a painting by Gail Rothschild, when you realize you are not looking at a painting so much as a map of time. Threads become brushstrokes; fragments become fields of color; something once held in the hand becomes something you stand in front of, both still and in a constant process of changing.

“Textiles connect people,” Rothschild said. “Textiles are something that we’re all intimately involved with, but we take it for granted.”

Keep ReadingShow less

Sherman Players celebrate a century of community theater

Sherman Players celebrate a century of community theater

Cast of “Laughter on the 23rd Floor” from left to right. Tara Vega, Steve Zerilli, Bob Cady (Standing) Seated at the table: Andrew Blanchard, Jon Barker, Colin McLoone, Chris Bird, Rebecca Annalise, Adam Battlestein

Provided

For a century, the Sherman Players have turned a former 19th-century church into a stage where neighbors become castmates, volunteers power productions and community is the main attraction. The company marks its 100th season with a lineup that blends classic works, new writing and homegrown talent.

New England has a long history of community theater and its role in strengthening civic life. The Sherman Players remain a vital example, mounting intimate, noncommercial productions that draw on local participation and speak to the current cultural moment.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

Reimagining opera for a new generation

Reimagining opera for a new generation

Stage director Geoffrey Larson signs autographs for some of the kids after a family performance.

Provided

For those curious about opera but unsure where to begin, the Mahaiwe Theater in Great Barrington will offer an accessible entry point with “Once Upon an Opera,” a free, family-friendly program on Sunday, April 12, at 2 p.m. The event is designed for opera newcomers and aficionados alike and will include selections from some of opera’s most beloved works.

Luca Antonucci, artistic coordinator, assistant conductor and chorus master for the Berkshire Opera Festival, said the idea first materialized three years ago.

Keep ReadingShow less
BSO charts future amid leadership transition and financial strain

Aerial view of The Shed at Tanglewood in Lenox, Massachusetts.

Provided

The Boston Symphony Orchestra is outlining its path forward following the announcement that music director Andris Nelsons will step down after the 2027 Tanglewood season, closing a 13-year tenure.

In a letter to supporters, the BSO’s Board of Trustees acknowledged that the news has been difficult for many in its community, while emphasizing gratitude for Nelsons’ leadership and plans to celebrate his final season.

Keep ReadingShow less
A tradition of lamb for Easter and Passover

Roasted lamb

Provided

Preparing lamb for the observance of Easter is a long-standing tradition in many cultures, symbolizing new life and purity. For Christians, Easter marks the end of Lenten fasting, allowing for a celebratory feast. A popular choice is roast lamb, often prepared with rosemary, garlic or lemon. It is traditional to serve mint sauce or mint jelly at the table.

The Hebrew Bible suggests that the last plague God inflicted on the Egyptians, to secure the Israelites’ release from slavery, was to kill the firstborn son in every Egyptian home. To differentiate the Israelites from the Egyptians, God instructed them to mark their doorposts with the blood of a lamb. Today, Jews, Christians and Muslims generally believe that God would have known who was Israelite and who was Egyptian without such a sign, but views of God’s omnipotence in the Abrahamic faiths have evolved over the millennia.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.