On inauguration day, a gift for Obama (Jan 20)
By Chuck Doud
The Madera Tribune
Here is good news for Barack Obama on the day of his inauguration:
Oil — the light, sweet crude variety — was trading yesterday for $34.39 per barrel, which is an enormous gift for the American people — or for any who use oil.
When oil was trading last summer in the $150 a barrel range, the biggest transfer of wealth in the history of the United States was taking place as money flowed to offshore producers. Now, that wealth is staying home for the most part, and although the current price still is historically above average, it is welcome.
For Obama, and the American people, this will mean two important things:
–The economy will be easier to fix, because less money will be going abroad, and the effects of high oil prices, such as increased transportation costs and the shock rising gasoline prices gave domestic auto manufacturers, will level off fairly quickly. Already, people are seeing the results of being able to keep more of their money.
–Obama will have more time to get his energy initiatives in motion.
During the campaign, he promised the United States would become energy independent. That promise will take longer than one presidency to fulfill. Still, he won’t be under the gun to adopt an energy policy just to be seen as doing something. President Carter painted himself into that corner trying to deal with an oil embargo.
That illustrates why oil and energy will be so important to the new president.
Almost all of Obama’s term in office will revolve around oil and its ramifications. Economics, climate change politics, the Middle East, Eastern Europe — all of the problems and opportunities he faces are intertwined with the politics and finances of oil.
Given all that, he begins this singular day with welcome good news.
