Skip to comments.Pelosi: Having More Oil Won't Lower Oil Prices
Posted on 04/26/2011 12:15:14 PM PDT by rightistight
Clearly Nancy Pelosi has never heard of "supply and demand." It's a simple concept, really: the less of something you have, the more expensive it is because of its scarcity and vice versa.
Apparently no one ever told this basic concept to disgraced Democrat Representative Nancy Pelosi. Taking to Twitter, she exclaimed yesterday:
The problem is, as usual, the facts simply do not agree with Ms. Pelosi.
You might notice that she linked to an article from CNN. As is often the case with CNN, their facts are muddied as well. In fact, even in their own story they admit to over-selling their headline, which was "Drill baby drill won't lower gas prices."
(Excerpt) Read more at punditpress.blogspot.com ...
She’s right. Only regulating speculation of oil as a commodity will, or taking it off the US market altogether.
Apparently Mrs. Pelosi believes the law of supply and demand has been repealed.
She is a prime example of how broken our political system is. The only greater example is The Big Zero himself.
My thoughts were: So much for supply and demand. I guess oil shortages wouldn’t matter either? But if we have more oil of our own, we buy less overseas...
Nancy, are you still here? I thought I told you to go home and practice your meatballs...
so, less oil will lower prices, Nancy?
Does anyone have a chart showing US oil supply vs oil prices?
Why is this brain damaged Syria loving twit, allowed to speak??
I trust Nancy because she is smarter than the rest of us. Without Nancy and others like her we would do dumb things and stuff like, you know. /s
She truly is mentally retarded. There can be no other excuse.
In her world doing the right thing does not exist.
Makes perfect sense to someone who thinks we can tax our way to prosperity. I swear, libs live in a bizarro world, where everything is backwards.
No, but during their Senate confirmation hearings both SoSo and Kagan strongly hinted that they would rule it unconstitutional.
I bet you that if Obama was not in power most of the speculation and risk would dry up.
The destruction of the US depends on us NOT having a cheap energy source, from cars to growing food.
THIS IS THEIR PLAN TO KILL THIS NATION.
Disingenuous lying thieving mockers of God. Bletch!
Now that gas is selling at 4 plus per gallon, I guarantee that the big bad oil companies would like to get some of that action by drilling. Funny how liberals WANTED high gas prices, so that we would use less, and buy electric cars. But when gas prices hit $4 under Bush, it was “hurting the consumer” and making his “oil buddies” rich.
Well, part of what is encouraging the speculation is that the government is blocking new drilling.
If there were a change in the general attitude towards oil drilling, that would also change the minds of the speculators.
It is true, though, that there is no shortage of oil...only of oil contracts.
Which nation will Ozombie use our military against now?
After Libya, who can say?
Pelosi is sort of correct.
If all our oil was supplied by domestic sources, we wouldn’t have to import oil, but the price would still be primarily determined by worldwide factors largely unconnected.
Oil prices have not been controlled by the law of supply and demand, the working out of the cost of production versus profitability, for many decades, if indeed it ever was. The supply of oil is determined not by businessmen reacting rationally to changes is pricing but rather by various governments which base their decisions on factors that include profitability only as a side issue.
IOW, the price is determined by supply and demand, of course, but while demand is fairly constant and generally rising, supply fluctuates unpredictably and for reasons that have absolutely nothing to do with the economics of the situation.
Having more government won’t lower oil prices either.
Pelosi makes me ashamed to be an American, she is so stupid, and how she made it so far is a crime....
With more supply, you take supply fears out of the commodities equation. Supply fears are so much of what’s driving up the cost of oil, largely because of unrest in the Middle East. Yes that enables the speculators, but they’re not going to bet on oil if they don’t think the future holds supply shocks and thus big run ups in the price of fuel. Add supply, you take away supply fears. Simple. Nancy Facelift is apparently too stupid to get this.
Regulation and restriction is sure not helping.
How about we just try it and see?
Maybe market forces can bring the price down.
(That is, if that’s the goal)
So prices aren’t based on supply and demand, but on supply fears that may never come true, plus herd mentality causing investors to over react.
Supply seems to be fine. The weak Dollar and speculation would be my novice guess. Not an oil expert.
There is no free market in oil and hasn’t been for decades.
Something like 80 to 90% of supply is controlled by various government, not private parties. And the rest if heavily regulated and decisions about how much to produce largely out of the hands of the oil companies.
While drilling now is probably a good idea, actual oil wouldn’t start to be produced for years from any new field, partly because of excessive regulation.
So one should ask her about US Natural Gas prices...
ALL prices are based on perception and expectation. Money and value themselves are perceptions, not independent self-existent realities.
Markets do an astonishing job of creating consensus as to these perceptions, but value has no existence outside people’s heads.
She also said.. after the 2008 elections... that the enlarged democrat advantage in the House would mean they’d be even “more bipartisan.”
The woman needs to be committed forthwith. Napa State Hospital sits just right up Route 29 from her winery. Certainly they have a luxury padded cell available.
You’re right Nancy, but if you tell Benny Bernacke to turn off his money printing presses you’ll see a big decline in oil prices.
Yes the weak dollar plays a role, but it is FEAR of supply constraints, even if supply now is okay, that’s driving speculation coming out of both the unrest in the Middle East and Obama shutting down domestic drilling whenever he gets a chance.
Obviously, most of increase in oil prices has to do with a falling dollar and not supply and demand.(except maybe the supply and demand for US dollars)
Supply is fine. That Dollar is being destroyed.
Pelosi... pure unadulterated sh!t for brains.
Keep devaluing the dollar and see what happens to the price of oil.
It isn’t just about the price of oil, Ms. Pelosi. It’s about thousands of high paying American jobs.
Priced in Silver, gasoline is getting historically cheap.
I agree with that. But the biggest current driver of high commodity prices is the lowered purchasing power of the dollar. Oil is traded in dollars, as is gold.
Speculators who use large amounts of oil and expect the dollar to keep losing value use the futures market to "lock in" the current price of oil for future delivery. And there are futures market gamblers who do the same. If they're wrong they can lose big!
Historically the price of an ounce of gold divided by the price of a barrel of oil has shown a ratio of about 15.5. Currently, using WTI Crude priced at $112 bbl, an ounce of gold at today's price of $1,502 will buy about 13.4 bbl. The ratio fluctuates day to day but is currently well within the historic average.
That’s certainly the positive way to look at it.
Hey Nancy, When is the last time you sat in a line at a gas station? There’s a glut of oil on the world market right now you dimwit. The reason gas is high is because the dollar is down. Oil is still traded in US dollars. Since Bernanke is going to keep walking it down gas is going to continue up.
True, solid evidence that we are in deep sneakers. When comparing commodity prices to PM, one sees deflation. When comparing them to Dollars, inflation is up over 30%.
And the Government thinks we won’t notice when they take Gas/fuel and food prices out of the inflation statistics.
Even more sickening, over 50% of the population believe inflation is not so bad.
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