Monday, October 09, 2006

New York Times Gas Prices Editorial Concludes We Should Drill in ANWAR

Could you believe the New York Times October 8, 2006 Editorial Roller Coaster at the Pump on unstable gasoline prices. It’s going down now before the election, but, just wait, gas prices will go up again. They really stuck their necks out with that prediction. The editorial included:

■ “42percent of respondents to a Gallup poll saying that they believed the Bush administration was manipulating prices ahead of the election”

■ However “no one can control the 85-million-barrel-a-day global market in petroleum products”

■ “consumers’ gut feeling that something is not right with the gasoline market is a recognition of fundamental changes in supply and demand that have made prices more volatile and attracted ever more speculation. Average Americans find themselves at the whim of an increasingly capricious market, one that strikes hard in the pocketbook. And it might become worse.”

■ “Now, with little additional capacity, rising prices are necessary to balance out supply and demand. Each bump can feel like an earthquake. But to speculators, volatility means the potential for big profits, so hedge funds and investment banks pile in to make bets, bidding oil futures up to unnatural highs and making the market even more unstable.”

■ “Predictions of another dire hurricane season this summer had the speculators salivating as they envisioned big storms headed for those oil rigs and refineries along the Gulf Coast. When the hurricanes failed to materialize and the driving season came to an unimpressive ending, the shouts of ‘Buy!’ turned to cries of ‘Sell!’ ”

■ “As long as the demand for oil and gasoline grows faster than the ability to produce and refine them, the slightest shocks to supply will keep sending prices rocketing higher. The only way to get a stable market back is to cut back consumption, through greater efficiency and alternative fuels.”

If the New York Times editorial board read their own editorial they might figure out the even small additional sources of supply could help stabilize gas prices. Anybody for drilling in ANWAR in Alaska?


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