It is a basic fact that oil and the price of oil drives the world economy today, yesterday and into the foreseeable future. Nothing we do will change this fact. As the price of oil increases so does everything around us. New technology will become more expensive and less likely to come to production if the the cost for the technology is beyond the reach of the average consumer.
Today Senator Reid is introducing a Bill before the Senate aimed at excessive speculation in the oil market. For months I have been saying there is manipulation of the oil prices by excessive speculation.
As was stated in CFTC: Oil Market Manipulation the results of their investigation would probably lead nowhere. The head of the CFTC has made statements before the Senate Committee saying he does not see any excessive manipulation. I don't buy it and more importantly the American people don't buy it. In the past year that the oil prices have doubled there has been no major interruption in oil supplies to the market. Even after Katrina and Rita the oil supply has remained for the most part stable. Senator Reid is right, there is excessive speculation.
On the other hand Republicans point out the margin between supply and demand is too close and our dependence on foreign oil is too much. The margin is around 86% supply and 85% demand. Our dependence on foreign oil is around 70%. They are right, we need to drill and increase the supply while becoming independent of foreign oil.
The problem with Senator Reid's Bill is it doesn't go far enough. He will not allow for drilling and he opposes amendments to his Bill that would include Domestic Drilling. This is politics at its worst.
As stated in Democrats, Republicans, Bush Right, Oil Down the answer to lowering the price of oil and gas is a Bill that will address the problem completely. Take the politics out of this problem. Americans expects Congress to act in the self interest of America and not one particular party. Senator Reid wants to be able to go before the American people and either gloat that the Democrats have acted to reduce the price of oil with passage of his Bill, or blame the Republicans for stopping his Bill and call for the election of more Democrats in the fall.
At todays prices everything should be open for discussion and Voting. It should not be party fighting to score political points. What happened to compromise? If the Senate will get their act together Nancy Pelosi will have no choice but to allow the question to come before the floor of the House or face the Political Consequence.
Here are some facts:
The price of oil on the open market has doubled in 1 year.
There have been no major interruptions in supply.
With increasing gas prices the demand for gas has fallen.
Since the late 70's Congress set idly by while we became more dependent on foreign oil.
Congress, President Bush (41), President Clinton and the environmentalist using our courts have set up major roadblocks to domestic drilling and are responsible for our 70% dependency on foreign oil.
Leases on the 68 million acres that Pelosi keeps referring to have so many roadblocks embedded in them that what used to take 5 years now takes 10 years before a company can even drill for oil.
When the Dow dropped below 11 thousand the oil futures experienced a one day drop of $8.00, this resulted in the Dow rebounding and finally stabling off. This demonstrates a direct correlation between the two, as the price of oil increases the Dow drops, as the price of oil drops the Dow increases.
The reason Congress' approval rating is at 9% and dropping is this Democratic Led Congress has demonstrated to the world they care more about playing the blame game and the fall elections than what is in the interest of America and the American people.
These are the facts in my opinion.
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