“This is an incredibly stupid thing to say...”
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Yes, based on the political power that is sadly in the hands of the firmly entrenched Communist Party, and the similarly ensconced anti-progress EcoFascists.
But based on just our KNOWN domestic reserves, that is a reasonable price target.
The price though depends on BOTH supply and demand. If the economy turns up, and demand continues to skyrocket in India and China, gas prices will almost certainly increase, regardless of what the U.S. does to spur domestic production.
Except that the value of the currency,worldwide demand as well as the cost of extraction all come into play. Its not a simple equation. It wasn’t smart.
Anything can happen when it isn't only actual supply and need based demand as the primary forces driving prices. Obama has injected high levels of fear and uncertainty as significant factors into the economy and economic decisions. Look at the recent price swings of gold - the supply is basically the same but demand is up, in part due to fear and uncertainty.
Not only can it happen, it does happen.
In the fall of 2008 gasoline pump prices dropped from about $4.00 a gallon to about $1.50 a gallon in less than three months.
In late October of 2008 I stocked up on regular gas at $1.51 a gallon from my local Hess and Racetrack stations. I should have bought some more 55 gallon drums - they would have paid for themselves in no time!
Sure there are other factors affecting prices, but when Obama is booted out of office the market psychology and expectations will change quickly and commodity prices will make rapid adjustments. When domestic drilling is opened up gas prices will fall, just on the expectation of greater supply down the road.