Energy: Just as President Obama was lecturing the country about how more drilling won’t lower gas prices, oil markets called his lie — cutting prices $2 a barrel in mere talk of releasing some oil from the strategic reserve.
As the Washington Post reported on Thursday, oil prices “dropped quickly … on a news report that Britain and the United States would cooperate on a release of crude oil from strategic reserves.”
Got that? On a news report. No oil has been released. It’s not even clear if any ever will, since the Obama administration can’t get its story straight. And even if the Strategic Petroleum Reserve (SPR) were tapped, it would only be for a relatively small amount.
Still, it was a glimmer of hope that Obama was actually taking the oil crisis seriously, instead of making excuses. And that was enough to knock $2 off the price of a barrel of oil.
Clearly, markets respond to changes in policy, long before any oil actually reaches the tank. Yet Obama continues to peddle the fiction that drilling doesn’t matter.
In fact, at the very same time oil prices were falling, Obama was delivering his umpteenth speech about how the country has to stop clinging to the dream of low gas prices, because nothing we do in the short term can change anything, particularly not expanded drilling.
He mocked the idea that “if we just drilled more for oil, then gas prices would immediately come down and all our problems would go away.”
The proof, he said was that “we are drilling” but prices are still high.
Well, which do you think weighs more heavily on oil markets when determining prices? That oil companies have been able to boost production on private lands, despite Obama? Or Obama’s thwarting of the industry whenever he’s had the chance?
Obama has cut production in public areas by 8%. He continually smears oil companies, and threatens them with $4 billion in new taxes. He reflexively kowtows to environmentalists by, among other things, killing the Keystone XL pipeline.
And unless Obama puts a leash on his EPA, it’s going to get much, much worse. A study released Thursday by the American Petroleum Institute found that the onerous gas and oil production rules the EPA is preparing will cut production by 37%.
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