Posted by
King Vinyl on Monday, August 04, 2008 8:04:03 PM
The first time I heard it was on Fox News Sunday. Tom Dashole said that his idea for an energy policy was for the president to release the strategic oil reserves. He claimed that would provide Americans relief from rising gas prices. What a joke. Then today Obama made the same statement to his crowd of worshipers at a campaign event today. But what does that really say? Duh, it says that we need to put more oil into the market.
Why on earth is that idea a bunch of fluff then? Because their claim that the futures market is what is reasponsible for the rising price is true. So then anyone who knows about the reserves can tell you that releasing them will only reduce prices on a temporary basis by about 2-3 cents a gallon. I would not at all be surprised if releasing those reserves did not cause a huge spike in crude oil prices. Why, because it would be a huge indication to the market that we Americans are going to continue to starve the supply of oil on the market. Does anyone remember the first time oil went above $100 barrel? All it took was one man with a lot of money taking a million barrels off the market for one day.
The market reacts now to real conditions on the ground. There is only one solution to gas prices, one solution for our economic woes. Release the oil shale, release the outer continential shelf, release ANWR!!! When the market figures out that we intend to control our future energy interest they will respond immediatly. Not in five or ten years, not in twenty years, right now. Then the price of oil will fall to levels closer to the cost of production rather than 10x production cost.
We still have to deal with the myth of a windfall profits tax. Why not impose these taxes on industries we don't need? It would be just as easy to charge this tax to the entertainment industry for any TV show or movie rated over PG or music containing explicit lirics. We could use the money to pay for family services. Then we could charge this tax to colleges who charge excessive tuition fees. Then give the money to educate inner city kids who get stiffed by the govenment schools. Taxing oil makes oil more expensive, listening to those who have always wanted energy prices at these rates is what got us here. So listening to them on solving the problem is a kin to Stockholm Syndrome.
But at least Obama agrees we need to boost supply he is just not honest or intelligent enough to see what that really means.
We can't conserve our way out of this.