Monday, February 27, 2012

The Price of Energy

As gas prices careen toward $ 5 per gallon, we are reminded that fossil fuels are the only game in town. For all of the waste and corruption of the Obama energy policy, it is good old drill, drill, drill that provides any hope of slowing the increase in gas prices at the pump.

Obama seems perplexed. He notes that energy consumption is down. So, why are prices up? Is he aware of China and India? They use energy too. Guess what? They are going to keep pushing the demand for energy higher and higher. Even with oil at $ 300 per barrel, one wonders if Solyndra would have made it. This is the most naive administration regarding fundamental economics in the past hundred years. Somehow, they think a few windmills will get it done. It won't.

Sooner or later, even the Obama crowd will realize that the US must tap its fossil fuel reservoir, potentially the largest such reservoir in the world.

Higher prices at the pump has a partial offset in profits and jobs in the US energy sector. No doubt, the bad guys in the Middle East will get their share as well. But, all in all, the only thing Americans have to fear regarding energy supply is more bad policies from the Obama Administration.

1 comment:

SMMcGinty said...

How much does the current monetary policy play in to the current price of gas & other commodities?

It is funny to see the administration claim the ability to control home mortgages, the price of student loans, the price of cars (cash for clunkers) & more; however, when it comes to energy prices it is completely out of their hands. You can't have it both ways, Barry.