Increase production? Nope. Increase regulation!
Under pressure to take action on rising gasoline prices, President Barack Obama wants Congress to strengthen federal supervision of oil markets, increase penalties for market manipulation and empower regulators to increase the amount of money energy traders are required to put behind their transactions.
I’m sure this will please both the greens and the trial lawyers, who are both important Democratic constituencies.
What it won’t do, however, is lower the price at the pump, and that’s what’s really the danger to Obama’s re-election bid. Maybe the hard-left greens will cheer when they see $5 a gallon at the gas pumps, but Joe Average won’t, because he’ll see money going into his gas tank that could be going somewhere else, like to food on the table or a well-deserved night at the ball park after a long day of work.
The law of supply and demand is simple. Increase the supply and the price goes down. It worked for VCRs when I was a kid, and it will work for gas. What need to do now is drill. We’ve got plenty of oil under our feet here in America, we just need to start taking the steps to get it into the pipeline. More supply, or even the promise of more supply, will drive the price down.
But Obama won’t do that, because it would anger the greenies. So get ready to see your wallet get thinner and thinner as gas prices rise.