(H/T – Kate)
Investor’s Business Daily nails the reason for out-of-control fuel prices ($3.20+/gallon for unleaded, $4/gallon for diesel here in the land of cheese and beer):
With demand rising, prices must move up. If they don’t, shortages will follow. Unless, of course, supply is increased.
In the case of oil, though, this isn’t happening.
Naturally, the oil industry is blamed. The popular complaint is that it is holding back because of greed. But the problem is due to government policy, both here and abroad….
As we have noted before, nine of every 10 barrels of crude reserves are either owned by a government or are under the authority of state-controlled companies. Poor policy decisions have made sure that supply has not been able to keep pace with demand.
In the U.S., a Congress cowed by hysterical special interests has refused to allow the development of a rich oil field in Alaska’s Arctic National Wildlife Refuge. It has similarly forbidden the harvesting of crude from fertile fields off of our coasts.
We watch helplessly while prices at the pump reach $4 point in the priciest U.S. markets and as much as 131 billion barrels of oil remain off-limits beneath our soil and our waters. Even the prospect of that oil hitting the world market would hit crude prices hard. Imagine what its actual arrival on the market would do.
But as long as the governments that run OPEC can be sure there are no plans for the U.S. to allow development in those fields, they can continue to limit production and keep prices high.
Roy Innis testified about this last week, and really blasted the envirowhackos. Thank you for bringing him to Wisconsin, Mark.
