Politics driving up the price of oil

Posted on April 3, 2008

Congress has just been told the truth about the price of oil - but they probably did not really understand it. In testimony to a Senate committee:

geopolitical tensions in big oil producing countries “provide the best explanation for crude oil price increases,” Commodity Futures Trading Commission (CFTC) Chief Economist Jeffrey Harris told a Senate panel’s hearing.

What they obviously don’t want to understand is that much of the “geopolitical” tension in one big oil producing country is their own responsibility.

The politics of energy, as practiced by the majority in Congress has resulted in considerable tension. They have voted to take away tax credits from producers of energy in the US, credits that were enacted to encourage more production. The Majority in Congress has also voted to maintain the difficulties facing companies seeking to increase, replace or rebuild their refining and processing capabilities. The majority has also voted to prevent exploration and production of oil in many areas of the country where there are known reserves.

The majority in Congress has also caused tension in other energy producing countries by calling for a withdrawal of US troops from the volatile and oil rich Middle East.

Rather than criticize oil companies and speculators for the price of oil, the Majority in Congress should first reverse their own actions that have worked to increase the prices. But then, the hypocrites that make up that Majority in Congress are habitually unable to actually work to prevent or solve any crisis. They instead create crisis after crisis so that they can make political mileage out of criticizing all sorts of Capitalist, wringing their hands and beating their chests - but certainly never actually taking action that would solve the problems they them selves help to create.

» Filed Under Reid, Pelosi, economic recession, Democrats, McIntyre, Hillary, Global Warming, Legislators, National Politics