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This is where I get so frustrated with the Republican party. In discussing oil prices, their main focus is on drilling more oil. This is a longer term solution. While not a bad idea I think it is time that they stop being so damn bull headed about exploring alternative energies. I agree with removing the regulations on drilling in certain areas as a stop gap until we can get some other options in place but they also need to realize that oil is the past and present but not the future.
http://www.foxnews.com/story/0,2933,365627,00.html
They just further make themselves look like one trick ponies in energy policy and look like they are in the pockets of oil companies. I am not saying that I believe that is completely true but it sure makes it hard to argue otherwise when they act like this.
Here’s a crazy concept stop interfering and thinking that you have any control. Or… worse screwing things up like the Corn Ethanol subsidies and let the free market dictate where to head. The market is more efficient at finding solutions that bureaucracy is.
Well I must admit that I really was a Bush supporter some time ago. I am not a Bush basher now but I must say that he has proven to not do much of anything over the last 3 years in office.
Now he makes the statement that US must “Get off Oil”. Really?? What has your adminstration and the Republican congress that you had for SO long done to solve the energy issues in the United States? Nothing. Can you show me the energy policy that your administration has been using? Oh no… there wasn’t one. Now as a lame duck President you make an obvious statement without any need to back it up.
I am tired of politicians who are so great at policy decisions except when they actually have to make them. Luckily the capitalist economy in this country will provide for the problem without the politicians getting involved.
It appears that the oil markets have no sense of common logic. I was just reading an article about the OPEC decision to not raise production quotas and the following statement was made:
“Badri said there was no reason for oil to reach $100, as it almost did last week, and continued to blame refinery bottlenecks, geopolitical issues and the weak U.S. dollar for oil’s ascent from below $70 a barrel in mid-August.”
– http://news.yahoo.com/s/nm/20071114/bs_nm/opec_badri_dc_1
This statement makes absolutely no sense to me. A bottleneck at the refining step is causing the price of crude oil, the product that supplies refineries, to go up. That is like saying that because the temperatures outside have been higher is the reason that natural gas prices have gone up.
From an economic perspective, it is reversed logic. It seems to me that bottlenecks in the refineries would cause there to be a larger crude oil supply because they are not processing it as quickly. This would cause supply surplus. Laws of economics say surpluses cause prices to fall not rise.
Is it possible that the all the players in the oil game have learned from politicians that if you just find something to blame people will buy it?
