Mahoning Valley Forum

The price of gasoline is going up again.

This station increased by 12 cents since this morning.

They say that gasoline consumption has declined in the U.S. but the price keeps going up.

Two west side gas stations ran out of gasoline today.

I have heard that President Obama wants the price to go up to $5.00 a gallon.  Does anyone remember when "The President" stepped in and STOPED the price of gas from going up?  He put a freeze on gas prices.  Was that in the 70's ???- I KNOW that happened but just can't remember who the president was at the time nor do I remember how long the freeze lasted.

The oil crisis had mixed effects in the United States, due to some parts of the country being oil-producing regions and other parts being oil-consuming regions.
Richard Nixon (http://en.wikipedia.org/wiki/Richard_Nixon) had imposed price controls (http://en.wikipedia.org/wiki/Price_controls) on domestic oil, and the resulting shortages caused gas lines during the 1973 Oil Crisis (http://en.wikipedia.org/wiki/1973_Oil_Crisis). Gasoline controls were repealed, but controls on domestic US oil remained.
The Jimmy Carter (http://en.wikipedia.org/wiki/Jimmy_Carter) administration began a phased deregulation of oil prices on April 5, 1979, when the average price of crude oil (http://en.wikipedia.org/wiki/Price_of_crude_oil) was US$ (http://en.wikipedia.org/wiki/US$)15.85 per barrel (42 US gallons (160 L)). Starting with the Iranian revolution, the price of crude oil rose to $39.50 per barrel over the next 12 months (its all time highest real price (http://en.wikipedia.org/wiki/Real_price) until March 7, 2008.)^{[8] (http://en.wikipedia.org/wiki/#cite_note-7)} Deregulating domestic oil price controls allowed domestic U.S. oil output to rise sharply from the large Prudhoe Bay (http://en.wikipedia.org/wiki/Prudhoe_Bay) fields, while oil imports fell sharply.
Due to memories of oil shortage in 1973, motorists soon began panic buying, and long lines appeared at gas stations, as they had six years earlier during the 1973 oil crisis (http://en.wikipedia.org/wiki/1973_oil_crisis).^{[9] (http://en.wikipedia.org/wiki/#cite_note-8)}
As the average vehicle of the time consumed between two to three liters (about 0.5-0.8 gallons) of gasoline (http://en.wikipedia.org/wiki/Gasoline) (petrol) an hour while idling, it was estimated that Americans wasted up to 150,000 barrels (24,000 m³) of oil per day idling their engines in the lines at gas stations (http://en.wikipedia.org/wiki/Gas_station).^{[10] (http://en.wikipedia.org/wiki/#cite_note-9)}

   

THANKS for the great info Towntalk - that sure was a long time ago - but it still was about MONEY wasn't it ?   AND Nixon last time I looked was a Republician - as if that had anything to do with it.   Can the current President of the United States do the same thing - put some CONTROL over the price of oil ?   I can not see how a reasonable person can not see the control oil has on this country.  Can you think of another product/commodity that literally changes it's price up or down not only by the day but by the hour or minute - and everybody just talks about it and pays.  Talk about the economy and control.  You have to be dumber than me not to get IT. 

If you understand the way markets really work, you wouldn't even suggest price controls.  If you instead believe in the idealized fantasy of how markets should work, then price controls are appealing. 

Pay attention to the news regarding why prices of crude oil fluctuate, then THINK, what kind of actions would cause a change in crude prices.  Well, certainly middle eastern policy has an effect, as does the whims of middle eastern tyrants.  Also, anything that could be construed as having a negative effect on the oil industry has an effect on prices.  Then, THINK about the value of the dollar, and what the meaning of QE1, QE2 and QE3 is and how that has an effect.    Finally, do a bit of research into the breakdown of costs involved with procuring and refining a barrel of oil, then look at what those expenses are see if you can tell me who is getting an unfair share.

Not everything can be simplified to the point of being understood by simple minds.  The real world is a complex place that does not fit into a 30 second sound bite.  So its simplified by the media, and as a result we now have so many people incapable of paying attention long enough to study an issue to its logical conclusion.  People don't really want to know the facts and the truth, they want answers that are simple and that confirm their own beliefs by villifying the nearest scapegoat. 

These simple people also do not realize that those very same oil companies that they wish would not "gouge", and wish their excess profits were taxed away,are the same ones they depend upon to keep the value of their 401k high. 

Rick I can agree with you about the news media. Radio news, what little there is, is absolutely useless, but this is no recent development since the demise of the radio networks. 5 minutes on the whole per hour, and most are simply replays of earlier newscasts. Television is better, but even it lacks substance due to time restrictions. Newspapers in the end remain the best source of in depth news, but how many actually take the time to sit down and carefully read them cover to cover?

Way back when radio stations placed more empthesis on news with half hour news/sportscasts at noon, 6:00 and 11:00 and in the morning drive 5 minute news at 6, 7, 8, and 9 and 5 minute sports 6:05; 7:05 and 8:05. Most stations today don't even have their own news department but take feeds from a local station in their chain (Clear Channel an example).