With skyrocketing gas prices, it is clear that the American people can no longer afford the Republican Rubber Stamp Congress and its failure to stand up to Republican big oil and gas company cronies.
Democrats have a commonsense plan to help bring down skyrocketing gas prices by cracking down on price gouging, rolling back the billions of dollars in taxpayer subsidies, tax breaks and royalty relief given to big oil and gas companies, and increasing production of alternative fuels.”
-Nancy Pelosi (April 24, 2006)
Here’s some recent audio from Nancy on the oil price problem:
Nancy’s Oil Plan:
- Make oil companies drill where it wouldn’t be cost effective. (Maybe Baskin-Robbins should open an ice cream parlor in Antarctica while we’re at it.)
- It would take 10 years for the price to reflect any change, if the government allowed oil companies to drill today. (Wrong. This is basic economics (see chart below): Investors will immediately see the potential that more oil will be added to the world supply and reinvest so they won’t get hosed – this will cause costs to go down. Plus, as Mark points out – it won’t take ten years. If there is money to be made – they’ll get the rigs in place ASAP.)
- The high price of oil is only because we have to “two oil men,” (Bush & Cheney) in the Whitehouse. (Yeah, and they’re forcing the price higher right at the end of their term in office for what…so they can have even crappier approval ratings? Plus, doesn’t this sound a little conspiratorial? Where’s the evidence?)
Meanwhile – we should be investing in alternatives like solar and wind. How exactly are solar and wind energy going to fuel the millions of trucks, trains, planes, and ships that are distributing food and goods around the country and the world?
The other solution Pelosi has put forth is to wait for the magical clean energy solution to come along. Ok, I support that – except again, what are we going to power our distribution and transportation networks on until then…Hope?
We need a realistic solution for the energy situation now. Challenge American ingenuity to come up with a clean solution for the future — but if the oil companies know where the oil is, and can drill in a relatively environmentally safe way, why not let them?
Here’s a little supply and demand graph refresher:
- P – price
- Q – quantity of good
- S – supply
- D – demand
ht [Mark Levin Show]