Hate gas prices? Blame Congress.

| June 24, 2008

Energy analysts testified to Congress yesterday that the price of gas could fall to about half of it’s price in about 30 days if Congress could only commit itself to act now;

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn’t even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

“Record oil prices are inflated by speculation and not justified by market fundamentals,” according to Gheit. “Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel.”

Of course, that’s the problem – the Democrat Congress won’t act while there’s Republican President. Democrats figure that the more Americans suffer, the better chance they have of winning the election in November. And then, they’ll have another excuse after they win the election to avoid solving our immediate problems, because the American Left isn’t known for their solutions to Americans’ problems.

It would seem news like today’s testimony to Congress would be shouted from roof tops – but there’s not a word. In fact, the price of oil and gas has shot up precisely because everyone in the world knows the US won’t tap it’s own sources. Just having a discussion about drilling last week, loosened up Saudi Arabia’s pumping restrictions this weekend. In fact 76% of Americans say we should drill our own oil – so where is Congress to give Americans what we’ve known we need for decades?

It’s a cheap political stunt and it’s hurting America. Alaska Governor Sarah Palin, in a letter to Harry Reid urged him to act;

What will it take for Congress to enact comprehensive energy policy that includes increased domestic production of oil and gas, renewable and alternative energy and, and conservation? It seems to us outside of the capitol Beltway that virtually every effort to accomplish this is met with criticism and failure. In my opinion, the debate about energy policy is no longer theoretical and abstract. Our failure to enact an energy policy is having real consequences for every American in their daily lives and has begun to affect America’s place in the world.

In other words, get off your scrawny butt, Harry and do something for the first time in your pathetic life.

Crossposted at Eagles Up Talon.

Category: Economy, Politics

Comments (4)

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  1. The damned liberals have had surgically implanted, the rhetoric that “It would take 10 years for drilling to hit the pumps, and we need alternative sources for energy.” Even if it would take 10 years for it to hit the pumps, how long ago did Silly Billy close ANWR to drilling? How many hears? And on alternative sources- Yes, that is a fact. And here, now, in 2008 we are developing alternatives sources faster than ever in history. We still need American Oil, and the argument of the possibility of damage to shores, wildlife, is an unfounded claim. Our oil companies, as well as the drilling companies are as compassionate about wildlife as any damned uninformed liberal bunny hugger.
    Put that in your smoke and pipe it, libs.
    nuf sed

  2. Rosemary says:

    So true. Great post.

  3. Gramps says:

    Yep. Seems to me it was 12 years ago that BJ Clintoon vetoed the drilling in ANWR because it would take 10 years before we saw any of that oil. That 1 million barrels a day looks pretty good right now.

  4. mtngrandpa says:

    Congress time frames only fit their own election cycles. So, the 10 years is ‘outside’ that time frame, and someone else’s problem.