Speaker of the House Nancy "I'm saving the world" Pelosi described the idea that increasing domestic production of oil would result in lower prices as a Hoax. Nancy it seems views supply and demand as a theory in much the same way creationists view evolution.

Do Nothing Nancy doesn't believe supply and demand have anything to do with the price of oil, or no doubt tea in China. OK so she's probably right about the tea. In China supply and demand have been replace by command and control. A system which I think Nancy would love to put in place in the U.S. Just as long she is doing the commanding and controlling.

No says the savior of the planet, the source of our energy price crisis isn't supply its speculation. Changing the supply - demand balance would have no effect at all, we must regulate and punish those who make their money gambling on what that future balance will be.

But let's take a look at what has happened.

As the have-no-debate take-no-vote Democrats sat on their pampered bottoms watching the price of oil and gas take off like a rocket, the American people responded. Sales of big gas guzzling CO2 belching trucks and SUVs have fallen faster than the housing market, while says of efficient smaller vehicles is on the rise. American's are driving less and doing it more efficient vehicles. They don't have any choice.  When it costs more than $50 to fill up the 12 gallon tank in a Jetta you adjust your driving habits.

The result of the decrease in DEMAND is that reserve SUPPLY began to grow. As the balance of SUPPLY and DEMAND began to shift what happened next?

Well if you think feel the way Nattering Nancy does, your answer would be nothing. Such a change would be meaningless because the price of oil is driven by speculation. However, over the last week or so, crude oil prices have dropped close to $30 a barrel from their recent record highs.

It's the summer, maybe all the oil speculators decided go on vacation at the same time.

Posted by: Stephen Macklin at 05:37 PM | No Comments | Add Comment