Saturday, September 6, 2008

Pariah Bush Pushes Drilling to "Possibly Ease" Prices at the Pump

The target of both presidential campaigns, President George W. Bush, tried to stay relevant. He suggested future domestic supply increases could "possibly" reduce gasoline prices. Yet, those same market forces were heavily in play in the second quarter while prices soared.

Demand fell, as Americans cut their driving miles up to 5%. Prices roared during that same time. They went from $3.25 to $4.06 a gallon. Oil company profits hit record levels, yet again.

No economist has spoken to this oddity. This data breaks the Bush market myth. Oil companies surely saw the decline in volume sales over the three month period. Why did the price go up 25%?

What other myths have been foisted on the American people by Republicans? Conservative pundit Bill Kristol said the appointment of Sarah Palin as Vice President would cause oil and gas prices to drop significantly. Instead of falling, they rose 20 cents a gallon at my neighborhood gas station.

That increase came as a result of Hurricane Gustav, but word is everything came through just fine. Refineries and rigs are OK according to news reports. So why haven't prices taken that Palin drop?

But how did "Drill Here, Drill Now, Pay Less" morph into "Drill Here, Drill Now, Possibly Pay Less"? What does George W. Bush know about international instability that could impact the price of a barrel of oil? He's not known for using qualifying language.