Category Archives: economic news

Shall we slow down to reduce fuel prices?

Of all the possible remedies being discussed on how to deal with the skyrocketing price of motor fuel, I have yet to hear one notion that got a lot of attention in the 1970s when we experienced an earlier form of sticker shock at the gas pump.

Those of us old folks recall when the Middle East oil embargo forced prices to zoom out of sight. Our response then in real time? It was to slow motorists down to 55 mph. Do you recall that? Sure you do!

Congress acted with relative dispatch.

The slowdown on our interstate highways lasted until the mid-1990s when Republicans took control of Congress and then lifted the mandated speed restrictions. We’ve been zooming along ever since.

I want to offer that as a possible talking point in the current climate.

It is clear that slowing down our motor vehicles from 75 and 80 mph to something a good bit less than that results in significant fuel savings. So, if you play that out just a bit you come up with a notion that greater supply and diminished demand on a commodity — such as gasoline or diesel fuel — could drive the price of that product down to more reasonable levels.

I was a huge proponent of slowing motorists in the 1970s. I received plenty of grief from my West Texas friends about my desire to drive more slowly.

Well, I don’t expect anyone to take this seriously. Perhaps the current price spikes are far beyond simple remedies such as what we enacted in an earlier time.

I just would like to see this talking point introduced once again in the public debate on energy policy. Let’s all remember this indisputable fact: Fossil fuels will not last forever.

johnkanelis_92@hotmail.com

Fuel costs take big bite

Well, there’s a first time for everything, I suppose. Consider, therefore, that for the first time in our more than 50 years of married life together, my wife and I are forced to amend our travel plans because — get ready for it — the cost of fuel is making extensive travel unaffordable.

I keep hearing about how the price of motor fuel nationally is averaging $5 per gallon. Then we hear from analysts who tell us there’s “no end in sight” to the skyrocketing price increases.

All I am left to do now is plead with the authorities who can control this madness to get a handle on the price of fuel.

Our sole vehicle — at the moment — is a three-quarter ton, diesel-fueled pickup. The price of diesel in Texas is selling for something a bit north of $5 per gallon. Out west it’s going for a whole more than that. We intend to travel out west sometime this year, but only if the price of motor fuel comes down.

We’re getting a new vehicle soon. It is a gasoline-powered pickup; it’s a smaller vehicle to boot. Its fuel rating is pretty good, about 22 miles per gallon. But that’s when it’s not pulling a travel trailer. Then the fuel-efficiency rating will decline.

I never thought I would have to lament how the price of fuel is affecting our retirement journey.

However … it damn sure is taking a bite out of our best-laid plans.

I am not going to blame President Biden for this cost spike. I do want to insist that the president do whatever he can to pressure whoever he needs to pressure to put an end to this madness.

My bride and I are not alone. We are among millions of Americans living on a fixed income who want to enjoy our time on this good Earth by venturing outside of our North Texas home community. We cannot afford to do much of it now.

johnkanelis_92@hotmail.com

That was then

Ahhh, yes. We remember those days, don’t we. They’re gone forever. As Don Henley once sang, “Don’t look back; you can never look back.”

But this picture does remind me of a more innocent time in the life of our great nation.

I am 72 years of age, which makes me old enough to remember how simple life used to be for all Americans. I remember a time when gasoline sold actually for about half the price shown in the picture attached to this post.

I grew up in Portland, Ore. Dad had this way of talking to gas station attendants — yes, they’re still on the job in Oregon to this day. We would ride in a car he was driving; he would pull up to the gas pump at the station.

The attendant would approach the car and Dad would say, “I’ll take a buck’s worth of regular.” Yep. One dollar’s worth of gasoline in the car.

Let’s do a bit of simple math. Gasoline sold for about 25 cents per gallon in those days. A “buck’s worth” bought Dad about four gallons of gas. If the vehicle he was driving was somewhat fuel-efficient — bear in mind that “fuel efficiency” was hardly on our minds in those days — he could drive, oh, about 60 to 75 miles on just those four gallons of gas.

I am left to simply sigh wistfully.

Those days won’t return. I find myself at this very moment wishing for “less expensive” motor fuel to drop to less than $4 per gallon.

Today we are grumbling at everyone. The president needs to “do something” to stop the skyrocketing price of motor fuel. In truth, the president is virtually powerless to control these prices. We bitch at the oil companies for price gouging. I am inclined to join that crowd, but I certainly understand there is little we can do to fight against what we believe is occurring in oil-company board rooms.

If they’re all doing it, how do we boycott the oil companies?

We are left to wish for worldwide conditions to change and for the worldwide supply to make it a bit more economical just to pump fuel for our motor vehicles.

If only we could turn back the clock.

— johnkanelis_92@hotmail.com

Biden energy policy undergoes big shift

It pains me to say this, but it appears that President Biden is flailing as he seeks to grapple with skyrocketing energy prices.

The president made a vigorous pledge during the 2020 campaign that there would “never” be drilling for oil on federal land were he elected to the nation’s highest office. I applauded the pledge when he made it.

Now he has changed his mind in a major fashion. The president now will allow that drilling to boost the supply of fossil fuel. He said times have changed since the 2020 campaign, requiring a pivot from that environmentally sound policy pronouncement.

The price of gasoline, diesel and other petroleum products has zoomed skyward, causing considerable pain at the pump for millions of Americans.

Still, Biden’s decision has angered environmental activists. I am not officially one of the “angry” Americans. I am just disappointed in the president’s policy reversal, which isn’t likely to have much of an impact on the price of fuel we are paying.

Joe Biden has sought to steer the nation toward a more renewable energy posture. Critics suggest any diminishing of the fossil fuel industry deprives Americans of jobs. What they ignore, though, is that green-energy job creation can help soften such job losses.

What’s more, efforts to rely more on alternatives to fossil fuels free the nation of any dependence on foreign sources of oil … while creating a cleaner environment that helps stem the damage caused by climate change.

President Biden is feeling the heat — no pun intended — from those who want relief from high fuel prices. If only he could stop flailing.

johnkanelis_92@hotmail.com

What else can we do?

President Biden is putting Vladimir Putin on notice: If the Russians deploy chemical weapons on Ukrainians fighting Russians in defense of their country, they will face “severe consequences.”

Now, I don’t expect the president to divulge what those consequences will entail before implementing them in the event the Russians resort to that hideous tactic. However, I am curious as to what precisely the United States can do to Russia that is more severe than what it has done already … short of launching a military counterattack.

Biden is adamant that U.S. forces will not engage Russians on the battlefield. So that’s not an option. At least that is my hope.

What’s next? What can we do? I am not in a position to speculate. Closing down our embassy in Moscow won’t amount to more than spitting into the wind. Kicking every Russian citizen out of this country won’t matter, either.

It appears to me that we already have levied severe consequences on Russia for its unprovoked aggression against a neighboring sovereign nation. Russian currency is worthless; Russians can’t export their oil to many nations that consume it; Russian assets are frozen around the world; Biden has delivered stern notice that an attack on any NATO nation will ignite a third world war.

I am not going to say that a chemical attack is coming simply because there is nothing else we can do to punish Putin and his thuggish partners in the Kremlin. I just hope that whatever President Biden has up his sleeve is going to matter and that Putin might be able to regret the next move he might want to take.

johnkanelis_92@hotmail.com

Drill, baby, drill

All this chatter about the impact of President Biden’s decision to ban Russian oil imports in the wake of Russia’s invasion of Ukraine misses an important point.

The price of crude has zoomed skyward. It is well north of $100 per barrel. The last time we saw this kind of price hike, the result was that American oil drillers uncapped their wells and got their pumpjacks fired up to start pulling the oil out of the ground.

Do you think it could happen again now that the Russians have launched a ground war in Europe and caused the world to react as it has done by essentially boycotting Russian petroleum products?

I can see it happening.

I spent many years in West Texas, and I can speak from experience about what I have witnessed during previous oil-price spikes. We would drive through the Permian Basin, or the South Plains east of Lubbock and we would witness those pumpjacks working relentlessly to pull oil out of the flat land. We saw much the same thing as we motored through the Oklahoma Panhandle.

Oil producers need little if any government incentive to realize when it’s profitable for them to get to work.

At these prices, they are able to make a healthy profit on delivering the goods.

johnkanelis_92@hotmail.com

Get set to pay … a lot!

I am swallowing hard as I ponder what I want to say about this, but … here goes. I am ready to pay a lot more for motor fuel if a U.S. ban on Russian oil can bring an end to the war in Ukraine.

President Biden is set to announce a total cutoff of crude oil from Russia. The announcement will come later today, just as the president comes to Fort Worth to talk about veterans’ issues.

Gosh, do you think he’ll field any questions about the Russian oil ban? More to the point, do you think he’ll answer them?

The POTUS has been getting plenty of pressure to “do more” to make the Russians come to what’s left of their senses. The dictator Vladimir Putin has launched a full-scale, unprovoked, bloody and senseless attack on a sovereign nation at Russia’s doorstep. Oil revenue is funding this invasion. The United States happens to be a prime consumer of Russian oil.

President Biden is about to tell the world that the nation he governs is no longer going to purchase that fossil fuel. The consequence undoubtedly will be a continued spike in the price of petroleum products.

I am prepared to pay it if it helps bring an end to the bloodshed.

johnkanelis_92@hotmail.com

Keep it in perspective

I couldn’t resist sharing this item that showed up on my social media feed this evening. I never really know who comes up with these gems; I do learn something from them.

My lesson here? It is that the pain, suffering, bloodshed, misery, anxiety, mourning and grief that Ukrainians are feeling at this moment put every little petty annoyance we might have in their proper place.

Gas prices going up? I don’t like it any more than the next person. However, it is good to keep some matters in context — such as what this message suggests we do.

More than 1 million Ukrainians reportedly have fled their country ahead of the Russian military onslaught initiated by the madman Vladimir Putin. Those who have stayed behind to fight the Russians are putting their lives in dire peril.

I won’t like paying more for the fuel that goes into my truck. However, I don’t believe I should bitch about it.

johnkanelis_92@hotmail.com

Will sanctions hurt Putin?

Jimmy Carter usually opposes U.S. imposition of sanctions on other nations, believing that such action hurts innocent citizens of the countries we intend to punish. With all due respect to the former president, I am going to wish that sanctions we deliver to Russia when that nation goes to war with Ukraine deliver maximum pain to the country, but more importantly to its leader.

Russian strongman Vladimir Putin today announced he recognizes two Ukrainian provinces as being “independent.” The decision prompted President Biden to levy limited sanctions involving those breakaway provinces. There will be more — much more — to come the moment Putin orders the tanks and troops to march in Kyiv, the capital of Ukraine.

Biden is caught in a bit of a bind. There can be no way on Earth he can send U.S. troops into battle with the Russians, even though he has dispatched several thousand American forces to eastern Europe. The only option we have is to levy severe and punishing sanctions on Russia, which Biden pledges to do.

What do those sanctions look like? I suppose it would involve freezing of Russian assets in banks around the world, presuming President Biden has enlisted the support of our worldwide allies. They should involve the freezing of Putin’s personal assets. There well could be suspension of oil and natural gas shipments to western Europe from Russia, which would take a huge bite out of Russia’s third-world economy. There needs to be a suspension of technology exports to Russia from this country and from the European Union.

Will any of this dissuade Putin from carrying out his ambition to bring Ukraine back under Russian control? Probably not. He just needs to pay dearly for his adventurism.

johnkanelis_92@hotmail.com

Bill Gates: medical expert?

Bill Gates made zillions of dollars marketing a computer company he co-founded in the Seattle area. He’s a genius at selling his product, as his standing among the world’s richest people will attest.

However, even Bill Gates might be a bit out of his league when he starts offering medical prognostications, such as predicting that the coronavirus pandemic is going to erupt again.

Dial it back, Bill.

CNBC reports: Speaking to CNBC’s Hadley Gamble at Germany’s annual Munich Security Conference, Gates, co-chair of the Bill & Melinda Gates Foundation, said that a potential new pandemic would likely stem from a different pathogen to that of the coronavirus family.

https://www.msn.com/en-us/money/markets/bill-gates-says-covid-risks-have-dramatically-reduced-but-another-pandemic-is-coming/ar-AAU2wVm

How does “Dr.” Gates know this? I don’t know. I am sure he’s talked to some medical pros about this, so now he’s throwing himself in front of a bold prediction.

I am not going to react dramatically and directly to a medical diagnosis offered by a computer marketing genius. I believe Bill Gates ought to stick with what he knows. OK? Now, sit down, Bill, and count your money.

johnkanelis_92@hotmail.com