Newt Gingrich: The Math of How Gasoline Gets to $2.50 – Obama Energy Plan a Sierra Club Flat Earth Fairy Tale

Newt Gingrich was on with Fox and Friends this morning. After a clip of Obama intimating that Gingrich’s plan for $2.50 gas is fictional, the Speaker is asked what makes him so certain that he can get gas to $2.50. They also discuss another American soldier killed by an Afghan today.

Newt opens with:

“…the administration has turned to Saudia Arabia to pump more oil” and says the Secretary of Energy agrees that pumping more oil in Saudia Arabia might bring down prices. “They want to pay the money to the Saudis – the Saudia government to get the royalties, the jobs to be in Saudia Arabia. Isn’t it strange to have an American President who favors Saudia oil over american oil, Saudia jobs over American jobs…?”

As to bringing the price down, Gingrich says:

…a factual example – not a theory, it’s history: Since 2008, natural gas production has gone up 11%. The price of natural gas has dropped enough that if applied to gasoline, it would $1.13 a gallon. That’s a fact. Natural gas has dropped dramatically over the last three years. Had oil had the same production increase over the past three years, and dropped the same amount, you would be paying $1.13 today. I’m being very modest. I’m just trying to get to $2.50. The President is even complaining about that.

About the photo: If you do not have QuikTrip convenience stores in your area, you have my sincere condolences. Tulsa is their headquarters and they are consistently on the list of “Best Employers.” QuikTrip is the fine wine of convenience stores, and their doughnuts aren’t bad either. You get a choice of both Pepsi and Coke and the mix is always right. The attendants are always nattily dressed – red golf-type shirts, khaki shorts, clean and very friendly – not to mention fast at the register. Their gas prices are always the lowest. I love QuikTrip!

Thanks to The Cable Guy for the video

Newt Gingrich on the Math of Bringing Down the Price of Gasoline to $2.50 – Sierra Club Flat Earth Fairy Tale (video)

Posted by Maggie @ Maggie’s Notebook

  • Marxists do not understand supply and demand.

    • woodsterman, no, that would mean some would have to work to supply the demand. Completely against their agenda.

    • Let’s take a look at supply and demand. We are consuming less oil than we were 8 years ago. Just a fact. I think that’s pretty much indisputable, right? So far so good?

      Now, here’s another fact to chew on; U.S. oil and gas imports have dropped over that same time period. Another fact is that we are producing more oil than 8 years ago. Yet, gas prices are rising with an expectation of getting even more expensive.

      So please explain with an iota of logic exactly how “supply and demand” is part of the equation. It isn’t. Why? It’s because the “drill baby drill” mantra is shear nonsense and has nothing to do with lowering the price at the pump. Why? Because any oil we produce goes into the world market which is driven by other factors.

      One of those factors are that the demand is coming more from China, which buys from the world market, which our production contributes to, which cannot possibly produce enough to change the price at the pump here.

      Another factor is the fear of war in the Middle east, again, something that makes the drilling mantra a non sequitur. And lastly, oil is rising because the economy is improving. It’s picking back up from its pre 2008 prices they enjoyed before the economy went into free fall.

      And by the way, natural gas does not compete on a global market like oil does, making Newt’s wishful rhetoric insignificant gibberish.

      It’s getting to the point that after I read such silly nonsense, that’s been debunked time and time again, I get this need to go and wash the stupid off of me.

  • How does a NUMBER 3 placed GOP candidate be the guy shaping the national debate with the President and GOPers think either Santorum or Romney have ANY chance against Obama in a real campaign???

    WAKE UP GOP!! You’ve got an All-Star Hall of Fame Conservative loaded and ready for bear. don’t pick the boy scout who hasn’t even gotten his slingshot merit badge or the guy who said he wants gays in the boy scouts!!

    • PolitiJim, I am supporting Newt, but I think it’s over for him. Haven’t shifted my loyalties, but between Romney’s attacks and the way Newt handled them, I don’t think he will recover. I’ll be standing here to cheer him on, though, if he does.

      • It seems that way although I’m still convinced it is FAR from over. Kind of like the 3rd place Baseball team that is 15 games out of 1st place with half of the season over. But there have been 3 of those teams that won their Pennant in the past couple of decades so I’m not giving up!

  • Okay, I’m busy, real busy. I’m late to the party. But here it is:
    You wanna drop gas prices? Check this out.
    and this:

    That’s all I have to say.

    • Stanford, I still cannot login at your place. Just tried to get another password and am told, after following the link I received via email that the “key isn’t valid.”

      Anyway, I have a question for you, and I have to admit while understand supply and demand, I do not understand it in this situation.

      If we can believe what we are told, gasoline usage should be down because people cannot afford to fill up. In fact, some are buying only a gallon or two at a time, and most are severely cutting back on usage in order to buy inflated groceries.

      So how does that wash? Also, we no longer have a strong U.S. dollar? Just asking. I sincerely don’t have a clue.

      • Information in my first comment link describes the 2008 events surrounding $5/gal gas. After Bernanke made a statement relatd to falling demand and more specifically, demand destruction (an underlying economic concept of the oil markets and some others) an $8 drop occurred in the first sell off on oil. Along with falling consumer demand gas prices fell over the next several months and the price at the pump fell to under $2/gallon.

        My point is, we did it before we can do it again. I realize demand for gasoline is down some. We need to keep restricting our purchases and in fairly short order prices will fall. Again, they did the last time, we can do it again. It takes discipline. Only spend what you absolutely have to on gasoline. That will be enough to lower prices in relatively short order e.g., months not years.

        BTW, can’t right now but will get on the password problem and get back to you.

        • Oops, here’s one relevant example of what I meant by discipline. For a guy who once put more than 67,000 miles on a car he had for a year and a half I have reduced my annual mileage to under 4000 miles. Before that my life long annual average was about 25,000 per year. I now work for myself. I work out of my home. For work, I only travel to my jobs and back. My personal driving is severely limited. I save by combining neceesary travel into short point to point destinations that fulfill my needs. It was part of my plan as a minimalist. Do only what you have to. That doesn’t mean you can’t do what you want to you simply must keep ‘have to’ and ‘want to’ travel separate and plan well enough to eliminate driving on impulse. Just like other financial decisions.

        • Thanks Stanford, I’m sorry about that password-thingey. I do have the right passwords, several of them from your place, including the last which you gave me, but they don’t like me:-(

          I have a 12 year old car, like new, an Acura RL 1999. I just passed 70,000 miles.