“The Bush plan is a hoax,”

“The Bush plan is a hoax,” responded House Speaker Nancy Pelosi. “It will neither reduce gas prices nor increase energy independence.” This was in response to President Bush lifting the ban on off shore oil drilling (AP story here)

Do you think Nancy Pelosi is eating those words yet?

If you recall in a previous post I pointed out that since the Democrats took power in Jan of 2007 oil and gas prices have continued to rise…yet this “hoax” has yielded an immediate response from the market, in particular those “pesky” speculators! The cost of oil has dropped $19 in one week!!!

They realize that if the US just begins to tap some of the oil that is available there will be a small but noticeable easing of demand.

Lets face it $1.00 gas is probably gone forever but there is no reason why we shouldn’t be trying to minimize the upward cost of a vital staple in the world economy! If we tap the known sources of oil there will be more supply to accommodate the ever increasing demand for oil. This will not be a permanent fix but it could help relieve the pricing pressure for the next 15-30 years while viable alternatives can be sought.

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