On Monday, President Bush rescinded the executive order that bans oil exploration/drilling on the outer continental shelf. On Tuesday, he urged Congress to lift its own moratorium. According to this piece by economist Larry Kudlow, speculators began selling down the price of oil while Bush was speaking. Oil Futures for August took a $9.00 dive!
The concept is simple: If speculators believe that the supply of oil is only going to grow in the future (as it would if we tapped the outer continental shelf), they'll begin selling oil, beginning now - and the price will fall.
This is good news for the American people, of course. But not for Democrats. Even while polls showing a massive public opinion shift towards drilling are stacking up on their desks, they continue to claim that the only answer is alternative fuels. Yesterday on FOX News, Sen. Diane Feinstein was asked "what's the most important thing we can do to bring down the price of oil?" Her answer? "Explore alternatives."
If we can't do better than that, get used to higher and higher gas prices.
Wednesday, July 16, 2008
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1 comments:
I wonder if people have ever considered that Democrats don't want oil prices to drop. People like Pelosi and Reid are still powerful behind the rhetoric of global warming and their own dream of secret state administered socialism. New polls show that more Democrats are actually feeling the heat from their constituents and opening up to the idea of drilling which is good for everyone. In the WSJ, Reid is actually "open to a compromise that would encourage more domestic oil and gas production." However, it also adds that he's aiming towards the speculation market. At the very, very worst, drilling will at the very least, put money into the pockets of American businesses instead of Saudi ones.
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