Pres. Obama Finally Admits That Supply And Demand Economics Work

  With the announcement from Pres. Obama that the United States would be releasing 30 million barrels of oil from the Strategic Petroleum Reserve, Pres. Obama has finally admitted that supply directly effects price.

 This release of oil from the SPR is to offset the rising cost of oil and gasoline just as Americans get set for summer traveling.

  It would seem as if Pres. Obama understands that if there is more oil on the market, then the price will come down. When it was announced that along with the U.S. release of oil, other countries would be releasing another 30 million barrels for a total of 60 million, the world market for oil dropped $5 a barrel.

  So this begs the question. If Pres. Obama gets it, that more oil on the market will lower the price of oil? How come this knowledge doesn’t translate into the President making it easier for companies to drill for oil domestically?

  Oh sure we have heard about this administration opening up more lands for drilling. But they have also increased the amount of time it takes to go through the permit process. So actually this administration has made it harder to drill domestically.

  Why this release from the SPR, instead of increased domestic drilling, and why now?

  That’s easy my friends. The President is using the SPR as part of his campaign fund. He is reading the polls and seeing the reports that he is losing favor with the American people because of jobs and the price of gasoline. He can’t figure out what to do about jobs, so he figures to sidestep the energy issue with this one time, short term fix.

 This will have a lowering effect on the world price of oil, for a short time. It also runs the risk of depleting the reserve at a time when the middle east is a very questionable source of oil.

  Why not make it easier to drill domestically and solve the problem long term? Because this is nothing more than a cheap campaign stunt. By releasing the oil from the SPR instead of increasing drilling, he doesn’t upset the environmentalist. The release of oil will bring gasoline prices down some , so he hope to win favor with those who are upset at the current cost.

  I encourage anyone who voted for Mr. Obama last time, to not be taken in by this. It should be an insult to your intelligence. He is saying that you aren’t smart enough to see through this scam.

 It is not short term solutions we need for our energy problems. It is not pipe dream solutions such as wind and solar. It is increased domestic drilling that will give us the energy independence that we must have in this volatile world market.

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