Nancy Pelosi on Oil Prices

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]

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3 Responses to “Nancy Pelosi on Oil Prices”

  1. Dennis Cook Says:

    I have a great idea. Let’s make it harder for the oil companies to do business, that will certainly bring down prices. This is “change that you can hope for”. While we’re at lets force automakers to make more fuel efficient cars, that way we can tell everyone that they can save a little money at the pump and all they have to do is go spend $20-$30k on a brand new car. This will definatley help those lower middle class families struggling to get buy, more “hope and change”.

  2. whatthecrap? Says:

    I get the feeling that the whole, “hope and change” deal just isn’t really enough for you…

    ;)

  3. David Says:

    Blaming the Dems for the increase in gas prices since the 2006 elections is just as much a short-view of history as others who want to blame Bush for the economic downturn that started in 2001. These wheels were spinning for a long time. The Dems had a losing fight on their hands, coming into to power with an neglibible majority at a point where war and lack of sound energy policy had already been at work for years prior…

    In short, there is plenty of blame to go around here. Stop the politics and focus on solutions.

    As for some of your facts… experts agree that new drilling will not help with current gas prices or short-term market dynamics. It simply doesn’t work like that. Even the Department of Energy has said drilling off America’s coasts would not have a significant impact on domestic oil production or prices before 2030. The website link above – well researched, fact-checked.

    These prices are here to stay, will go higher, and it’s a good thing as it finally hits people that we need to change our wasteful, non-sustainable ways. People should ride more bicycles, anyway.


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