Political Briefs
March 18, 2012
Drill Baby Drill
The "drill, baby, drill" crowd, some of whom send me emails, is making me nuts. Oil is a fungible product, traded on world markets, which are controlled by international demand (over which the US has no control) and speculation. "Generally speaking, there's about one-third speculators making deals on oil and two-thirds of end users. Right now, it's the exact opposite. McClatchy News Service found that, currently, Wall Street speculators make up almost two-thirds of all trades." The US could control speculation, but politically chooses not to. It is not oil scarcity driving up prices, and US drilling won't bring it down for very long, or in a very widespread way. Alaskan oil already largely goes to Japan. Anhy new oil will go to Brazil, Russia, India and China at the world price, unless you believe Chevron will have a special "U.S. only price." Dream on. More production will improve out balance of payments, but it sure as heck won't lower our prices.
- What Did Your Employees Do at Gitmo? Also here.
- Raising Banker's Bonuses And Lowering Your Expectations, Why Ever Would Confidence In Government Be Low?
- WaPost Bamboozled By Pete Peterson Again
- Out of Afghanistan now
- Republicans Intellectually Bankrupt