Open e-mail to Rep. Neugebauer:
Randy,
EIN News says, "Oil Release by IEA Is a 'game-changer' Despite Price Bounce It might not sound like much of a victory. The US and other oil-consuming countries release emergency stocks of oil to put a lid on prices. The result: crude prices in London rise by $1 since the programme began three months ago. (gulf-times.com)".
The United States and more than two dozen other countries that make up the IEA put 60 million barrels of oil into the market this summer in an effort to drive down skyrocketing oil prices.
It is unclear to me how anyone could logically say that the putting of strategic oil supplies into the market had a significant effect on reducing oil prices. We have no way of knowing what the oil price would've been without the "putting". I also do not claim that the "putting" had no effect.
I do recognize that based on normal laws of supply and demand, if the price is increasing on a product, the product is desired and there is a shortage of supply or else the mode of payment has become poorer. I think we can reasonably speculate that while the dollar has been declining in value, there is still a substantial shortage of oil compared to the amount desired.
This leads me into my standard complaint that Obama and the Department of Interior have continually withheld drilling permits to limit the quantity of US oil production in favor of promoting "sustainable" energy.
I also revert to the suggestion of two major oil company CEOs, who claim we need more federal regulators, on the presumption that those additional regulators will speed up the issuance of drilling permits. This is obviously a silly supposition, because all of these people take orders from Obama and Salazar to limit oil production.
Randy, it is up to Congress to change the situation, I don't know how it can be done. Perhaps you have some imaginative technique which could work to increase drilling permits and get more oil flowing.
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