Thursday, June 12, 2008

Democratic Environmentalism Cause Of Higher Oil Prices

Upset about too high oil prices? Well, that is certainly justified, but you shouldn't blame the market for this. The people to blame fo this is the Democrats in the U.S, Congress who yet again blocked a Republican attempt to open up the vast offshore oil resources outside the United States for drilling.

Their arguments, repeated by their professional environmentalist backers in groups like the Sierra Club, was as usual completely nonsensical arguing that because oil has been produced in America, insufficient oil production in America couldn't be blamed for high oil prices. Which is of course complete B.S. because as anyone with even a superficial understanding of economics would tell you, increased supply will always cause prices to be lower than they otherwise would have been and as U.S. oil production is lower than a decade ago.

It is true that a decision to drill now wouldn't provide any short term relief for motorists, but this Democratic blockage -supported by a small number of Republicans, including a certain John McCain- of U.S. oil production has been going on for some time now, and hadn't they pursued this environmentalist policy before, then oil prices would have been a lot lower now. And in a few years, a decision to drill now would give relief. While we wait for that, the best solution for providing short-term relief on energy prices remain releasing oil from the so-called Strategic Petroleum Rserve, and even more importantly, ending the inflationary policies of the Federal Reserve.


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