How perfectly fitting that Gary Benites’ letter (“Something I’ve wanted to do,” Nov. 4) regarding Al Fonzi’s tendency to spew misinformation (with a straight face, mind you) and Fonzi’s latest (“Musings of a pack rat,” Nov. 4) appeared on the same day! We got a long diatribe on the evils of Third World dictators and “petropolitics,” couched in Fonzi’s unmistakable style: “Look how well-read and educated I am!” (while he spews forth total balderdash). To wit:
After bemoaning the current high gas prices, we get this: “I … don’t understand why my fellow Americans really like paying $5, $6, or soon even $8 to $10/gallon for gas. After all, they voted the politicians into office responsible for this mess.” Seriously, Al?
In an effort to enlighten you, Al, the price of gas is directly influenced by the price of oil, and there are two factors that have driven up the price: One is that demand collapsed last year as the pandemic caused many people to stop traveling, and the price of oil plummeted. That, in turn, ended up idling 3 million barrels per day of U.S. oil production relative to a year ago. That wasn’t the fault of any politician.
Now, as the end of the pandemic nears, demand is bouncing back, but supply doesn’t respond as quickly, which puts more pressure on prices. According to Forbes, on the first trading day of January 2021, the price of West Texas Intermediate closed at $47.47 per barrel (bbl). Two months later, on the first trading day of March, the price closed at $60.54/bbl. During that time, gasoline prices rose by $0.46/gallon. In addition, OPEC and Russia decided to extend most of the current output cuts—Saudi Arabia kept in place a million barrel per day cut! That sent oil prices even higher, and will likely keep them there. Meanwhile, our current gasoline supply in the U.S. is at a two-year low.
Supply vs. demand. Get it, Al? Sitting presidents have zero to do with gas prices, and never have. Fact is, your claim that it’s Biden’s fault because “President Biden and his Democrat allies shut down substantial segments of our national oil industry” is as ludicrous as “restrictions on fossil fuels are creating artificially high prices.” Neither claim can withstand the slightest amount of scrutiny.
David Pyle
Nipomo
This article appears in Nov 11-18, 2021.
I’m so glad readers are calling out Al Fonzi for spreading misinformation (dare we say lies) and unsubstantiated opinion under the guise of “rhetoric and reason.”
Mr. Pyle asks us to believe that our high gas prices are merely the operation of supply and demand. Why, then, are our prices the highest in the country, around $1.50 per gal. higher than some other states? For that, we can thank Mr. Pyle’s Democratic pals. We have the highest gas taxes, recently again raised by our Democratically – controlled state government and their insatiable thirst for our money. Their craving for our money is like a crackhead’s hunger for more drugs. We also are the one state which requires a special formulation for the gas, limiting our supply. Our Democratic government also likes to beat up on the industry, making it more costly to do business here. Biden’s shutting down the pipelines will also limit supply and drive up prices. So the next time you find yourself gasping in horror at the high price of filling up your car, you know who to blame.
John Donegan neatly sidesteps the issue here by focusing only on California, which has had the highest gas prices in the country for years now. Why? For sure, we have a higher gas tax, with the State trying to fix deteriorating highway infrastructure here with limited Federal help. But the major reason is that Gulf Coast regions have far more refining capacity than the West, always have, and much lower transportation costs. Also, like Mr. Donegan says, Californias environmental rules mandate that gasoline sold here be produced according to strict formulas that reduce pollution – but the gas is more expensive to produce than dirtier fuel sold elsewhere. Because the Golden States market is isolated from outside fuel suppliers that might moderate prices, and few refineries outside the state are equipped to produce it, the fuel market here is an economic island. (In 1982, the state was home to 30 gasoline-producing refineries; now there are 11, mostly controlled by just two companies.) When did these regulations go into law? Between 1992 – 1996, under Republican Governor Pete Wilson – Joe Biden had nothing to do with it.
Fact is, gas prices today are higher EVERYWHERE in the US, Mr. Donegan. How do you explain that?
Of course the prices are higher nationwide because of the market, but they are HIGHEST in California because of the Democrats. Other states manage to maintain their roadways at a fraction of the tax rate California extracts, including states in colder climates where the costs are higher due to freezing. Of course, building is more expensive here due to union mandates and quotas, and other factors that the Democrats insist upon. The shortage of competing refineries is another “benefit” of Democratic rule and their environmental regulations and resistance. Special formulation of the gas creates higher prices. Are the voters in California willing to pay higher prices to do these things? That is unknown, because the Democratic politicians have never been honest enough to level with the voters about the cost, and instead pretend that they present a painless burden which is paid by “someone else”.
I’m not sure what all the fuss is about. Last time I checked at the Shell gas station, gas is STILL CHEAPER THAN BOTTLED WATER.
“Of course the prices are higher nationwide because of the market…”
Thanks for proving my point, John. Prices are indeed higher all over “because of the market” – but, pointedly, NOT because of “…President Biden and his Democrat allies..”, as Mr. Fonzi asserted.
As far as gas prices being “.. HIGHEST in California because of the Democrats.”, well, that’s simply an opinion, not an empirical fact, and everybody has one. There is no doubt that Democratic environmental policies have made our gas more expensive, but there are many other valid reasons as well, and “it’s all the Democrats’ fault” is simply a handy catch-phrase that ignores all of them.