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Nancy Pelosi’s energy policy
Posted by: McQ on Tuesday, July 08, 2008

I sometimes wonder (in fact I often wonder) about the real mental acuity of the Speaker of the House. She does not impress me as the brightest bulb in the pack:
The speaker blames what she labels the Bush-Cheney big oil agenda, using graphics to point out gasoline prices have more than doubled in the Bush administration.

"This is a scam of the greatest magnitude," says Speaker Pelosi.
You have to remember that when Ms. Pelosi and the gang were running for reelection in 2006 they promised that if the people would give them a majority, they'd take care of gas prices. Standing in front of a gas station with posted prices in the $3 range, she and the others implied it was as simple as that. They had a "common sense plan", remember?

Now, with gas prices over the $4 mark, about all the Democrats seem capable of doing is attempting to blame Bush. And don't even talk about increasing domestic production:
"You know full well if you could drill in the Arctic Refuge it would save two cents 20 years from now," says Speaker Pelosi.
Ah, goal-post shifting (or just the usual hyperbole, you decide) - now it's "20 years" instead of 10. Of course, unsaid is the point that drilling elsewhere coupled with ANWR would yield much more than "two cents" on down the road, wouldn't it?

As for Pelosi's "common sense plan", well, it appears to be a two pronged attack. The first part of her solution then is:
"Mr. President, do not fill the strategic petroleum reserve with oil at record highs. Instead, take out the oil that we brought at a lower price to bring down the price of oil, to reduce the price at the pump," says Speaker Pelosi.
Right. Instead of drilling, Ms. Pelosi would instead like to see us without a SPR in a time in which we import 60% of our oil and are subject to interruption or cut-off at any time. Brilliant.

And what would pushing this oil onto the market do for the price of gas - not that much. Maybe a few cents per gallon.

But I mentioned a two-pronged attack by the speaker, didn't I? Well here's the second:
Building on last month's bipartisan legislation passed overwhelmingly by the House requiring the Commodities Futures Trading Commission to use its emergency powers to curb excessive speculation distorting the energy markets, the House Agriculture Committee this week will hold three days of hearings on oil market speculation. The goal is to present the House with strong legislation this month to bring transparency to the markets and to end speculators' ability to artificially inflate the price at the pump.
The House Ag Committee is holding three days of hearings on oil speculation? Brilliant! I'm sure the folks at the London futures market (and other foreign venues) are shivering in their boots. And, of course, I'm sure the faux problem of "speculators" will somehow be laid at Bush's feet as well.

So there you have Nancy Pelosi's solution to our gas price woes. Don't drill in ANWR (or anywhere else), deplete the Strategic Petroleum Reserve (a brilliant national security strategy) and go after speculators with Ag Committee hearings.

Wooo Hooo - we'll be down to $2.50 a gallon in no time.

If Nancy Pelosi and Harry Reid aren't the greatest arguments against seniority as the primary qualification for a leadership position, I don't know who would be.
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Previous Comments to this Post 

Coal and oil doesn’t make us sick, idiot politicians do
Written By: shark
URL: http://
I’ve been watching the Dmeocrats play their cards on this stuff of late, and one thing that’s come up in the last several hours is the Jersey Democrats insisting on maintaining the drilling ban off their shores.

As I said at my own place this morning, I have a cure for that one;
I propose the federal government imposing a $6.00/gallon tax on gasoline, to be effective in only those states which have laws on the books prohibiting oil exploration, oil drilling, and/or refineries from being built or their development slowed. This proposal does not run afoul of the states’ right to do what it wants. It simply imposes consequences for their foolishness.

And how could Democrats object to such a tax if oil is such an evil?

The resulting whining would be the best thing possible for this country. I’m telling you; the resulting move toward opening up oil fields wherever they are would cause a change of direction among the Stonewallers in the Democrat party, Pelosi included, that most of the country would suffer whiplash.

But who has the stones to make such a move?
Written By: Bithead
Not to give credence to Pelosi, but there could be a STRATEGIC use for the SPI: Dump about 1/3 of it on the market, scaring the bejezes out of the speculators.

Frankly there is no oil ’shortage’ right now. Refineries are running at less capacity and supply reserves are higher right now than they were this time last year. Most of this price appears to be caused by speculation, from what I’ve seen.
Written By: buddy
URL: http://
"You know full well if you could drill in the Arctic Refuge it would save two cents 20 years from now," says Speaker Pelosi.
Why won’t someone call the Dems on this BS. If you only announce that you intend to drill anywhere the price will start to drop. Thats why the are called the FUTURES market.

Speculation as in a politician in Israel saying it is inevitable that they are going to bomb Iran and the price of crude jumps $10 in two days, fine. Thats their function. Speculation as in the letter writer to the editor claiming that the oil companies are paying the traders, not so much.
Written By: tonto
URL: http://

Agreed. A fantastic one two punch, though, would be to announce

1) Drilling and exploration can commence immediately off the coast of any state that wishes to do so, as well as ANWR

2) Effective 12 pm tomorrow, 1/3 of the strategic petroleum reserves will be released onto the market.

Written By: buddy
URL: http://
"Coal and oil doesn’t make us sick,"

All together now:

"The best things in life are dirty!..."
Written By: CR
URL: http://
"You know full well if you could drill in the Arctic Refuge it would save two cents 20 years from now," says Speaker Pelosi.
The most straightforward refutation of that sort of "thinking" that I’ve seen lately was in this WSJ Opinion piece (which I found at BitsBlog, as I recall — apologies in advance if it’s already been posted here):
[O]wners of oil will adjust their production and inventories until the price of oil is expected to rise at the rate of interest, appropriately adjusted for risk. If the price of oil is expected to rise faster, they’ll keep the oil in the ground. In contrast, if the price of oil is not expected to rise as fast as the rate of interest, the owners will extract more and invest the proceeds.

The relationship between future and current oil prices implies that an expected change in the future price of oil will have an immediate impact on the current price of oil...

Any policy that causes the expected future oil price to fall can cause the current price to fall, or to rise less than it would otherwise do. In other words, it is possible to bring down today’s price of oil with policies that will have their physical impact on oil demand or supply only in the future...

[I]ncreasing the expected future supply of oil would...reduce today’s price.
Also, when you consider Pelosi and Company’s grand plans "to end speculators’ ability to artificially inflate the price at the pump," you have to wonder whether they’ve even glanced at any precedent for that sort of thing:
Back in 1958, onion growers convinced themselves that futures traders were responsible for falling onion prices, so they lobbied an up-and-coming Michigan Congressman named Gerald Ford to push through a law banning all futures trading in onions. The law still stands...

The volatility of monthly onion price changes (measured by the standard deviation of price changes, 66%) was 7.5 times higher than the volatility of oil price changes (standard deviation of 8.8%) [from January 2000 to May 2008]. (emphasis in original)

Written By: Linda Morgan
URL: http://
Meanwhile, the private sector pipes up with its own wind and gas on the matter...
Written By: CR
URL: http://
I can’t believe that the leadership of this great country for the next four years will consist of Nancy Pelosi, Harry Reid, and either Barack Obama or John McCain. Just think about that for a second. That is the leadership that will affect all of our lives.

A couple of years ago, a not-very-good movie came out called "Idiocracy" that portrayed a future where all the stupid people in the world reproduced at a greater rate than the smarter people. The result was a world populated by idiots. I think we may be there now. The imbeciles that are running our country were voted in by the American people and they are only going to increase in number given that Democrats seemed poised to increase their congressional majorities.
Written By: jt007
URL: http://
The only people dumber than Pelosi are those who elected her.
Written By: Grimshaw
URL: http://
Unfortunately, there are a lot of truly stupid (well, intellectually challenged, at least) people in Congress. We don’t need Einsteins for the system to work, but we do need people of at least average intelligence with common sense. Common sense appears to be in even shorter supply than raw intelligence in Congress.
Written By: jorgxmckie
URL: http://
So what’s Soros making money on these days ? Any oil in his mix ?
Written By: Neo
URL: http://

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