Minnesota Independent: News. Politics. Media. » Gas Prices

Bachmann takes credit for cheap gas

Paul Schmelzer — Fri, 31 Oct 2008 17:43:45 +0000

Gas prices in the Twin Cities are now under $2.00 a gallon in some places, thanks in part to fewer driving miles by cash-strapped consumers and, therefore, lower demand. Dawn Duffy of AAA Minneapolis told the Star Tribune that “crude oil is about half the cost of what it was in July, demand has gone down [and] our inventory of gasoline rebounded rather quickly after the two recent hurricanes.” (OPEC is cutting production by 1.5 million barrels a day in hopes of slowing the price drop.)

Other factors include a seasonal dip in prices this time of year, after what some analysts say were overly inflated gas prices throughout 2008. Also, as CNNMoney.com argued in August, prices are down as a result of a crippled U.S. economy: “A weaker U.S. economy affects not only demand from drivers, but it can also weigh on commercial fuel use if consumers buy fewer goods.”

But Rep. Michele Bachmann offers two other factors: the expiration of the ban on offshore oil exploration — and herself.

In an Oct. 29 campaign event with Norm Coleman, Bachmann took credit for gas prices that in her district were $2.04 a gallon, “That was my goal. When I started out early this year, my goal was to get to $2 — oh they gave me grief for it.”

A day later at her Townhall blog, she gave this explanation for the drop in prices:

What happened the past few months to lower the cost of gas? Several things, but perhaps most importantly, Congress has let the ban on offshore oil exploration and oil shale expire, sending a signal to the markets that the United States may finally be ready to up their supply. Also, the collapse of the global markets has stabilized the American dollar. In other words, we’re now getting more bang for our buck.

Friday Financials: Hide your manholes and lock up that gas

Molly Priesmeyer — Sat, 17 May 2008 18:48:20 +0000

Today’s special edition of Friday Financials comes to you on Saturday. Yes, we’re a day late and a dollar short, so to speak. And a dollar can’t buy you anything these days. That’s why this very special episode is an all-thieving edition. Nothing is safe these days. Not even your kids’ bats.

Take cover. It’s Friday Financials! Gas, light poles, and manholes. Oh, my!

With gas prices hitting nearly $4 a gallon, gasoline thieves are on the rise, and their skills are apparently evolving. Yes, gas stealing is the new stick it to the man, or more accurately, stick it to the gas station owner who is making only about 16 cents per gallon of gas sold. The good news? Someone besides the major oil refineries is starting to see a profit. Thanks to the high gas prices, the makers of locking gas caps have seen their sales go through the roof.
And in more Depression-era crime news: As the economy goes into the crapper and the price of scrap metal rises, so do crimes involving scrap-metal theft. Earlier this week a pair was arrested in New York state for sawing through light poles to obtain about $140 worth of aluminum. The good news? It’s not as bad as the new-wave crimes in Phoenix. There, folks are are so desperate for cash they’ve stolen 139 metal manhole covers since February.
Perhaps the new taxpayer-funded Twins stadium should stay away from aluminum bleachers. With high schools being targeted for their bleachers, major stadiums would be major scores. The good news? It’s baseball season, so consider this “good news” a gentle warning, Little Leaguers. Aluminum scrap is about 80 cents a pound. You can spend all summer locking up your aluminum bats. Or you can get in on the trade now and exchange them for a couple of cans of Red Bull and a bag of Cheetos. Happy eating!

Friday Financials: We’re riskier than Detroit!

Molly Priesmeyer — Fri, 11 Apr 2008 14:47:22 +0000

Is it just us, or is time folding in on itself? It feels like November outside. The “Don’t Tase me, bro” video somehow reappeared to fight a water buffalo in a YouTube contest. And then days later, as if punctuating the annoying “bro” resurgence with a Tase of its own on all of us, Kiplinger reported in an article called (literally) “A Stunning Opportunity” that Taser sales will likely jump 50 percent this year as “Tasers penetrate untapped markets here and abroad.” Startling indeed!

But we’re here to give you the zinc lining in the dark clouds. A high-ball for a week of low balls. It’s time for Friday Financials!

PMI Mortgage Insurance Co. released its Spring 2008 Market Risk Index study on Thursday, and the Twin Cities were ranked No. 4 on the risky home-price index (though we’re actually at number 22 on the list of 50). The metro area has a 16 percent likelihood that home prices will further decline over the next two years. Detroit fell just below the Twin Cities with a risk-factor of 15 percent. The good news? We’re still not Detroit.

Wanna buy a home? Start saving. The subprime fallout means the days of no-money-down mortgages are all dried up. On average, home buyers will need at the very least 3 percent down and an average credit score of 680 to get into a home. For Minneapolis, that means the 30,532 homes for sale are likely to stay empty even longer. The good news? If you aren’t lucky enough to have about $6,000 put away for a down payment, more rental properties are opening up in the Twin Cities. But a two bedroom will run you about $1,000 a month.
With oil at record prices, driving the average car eats up about 54 cents a mile, according to a new report by AAA.
In the Twin Cities, the average length of a one-way vehicle trip is 7.9 miles, or $3.95. So we’re coughing up $8 a day for a round-trip work commute, and we’re spending an average of 47 minutes in our cars just to get there and back? It’s time to ask the bosses for a gas raise. Or think about stating that at-home envelope-stuffing business. The good news? May 18 is bike to work day. Let’s hope November will have passed by then.

Who said it?

Dan Haugen — Wed, 12 Mar 2008 13:19:11 +0000

“Let me start first by telling you that America has got to change its habits. We’ve got to get off oil. And the reason why is, first, oil is — dependency on oil presents a real challenge to our economy. … It should be obvious to you all that the demand is outstripping supply, which causes prices to go up.”

Who said it? The answer after the jump…George W. Bush. Yes, the same president who only two weeks ago seemed caught off guard by a question about gas approaching $4 a gallon. (”That’s interesting. I hadn’t heard that.”) Speaking the other day at a renewable energy conference in Washington, D.C., he now apparently grasps the same argument made by peak-oil proponents, and even vaguely endorses doing something about it. The full text of his remarks is available here.

For those who missed Bush’s $4-a-gallon response, here’s an excellent recap from the Daily Show: