Here is something that the greedy conservatives and the economically ignorant politicians who support them don't seem to understand. Prices in a free market are set by the maximum amount buyers are willing to pay. The "demand curve" is set by this factor. The US consumer has proven they are willing and able to pay $4 plus for gas. So what makes these morons think that even if they get an increase in supply and demand stays constant, that it will cause a reduction in gas prices?Alright, before we get started let us ask ourselves some pertinent questions.
Q: Will drilling in ANWAR take money and put it directly in your pocket. If the government gives these companies that are making huge profits with no regard for the destruction it is doing to the economy the rights to drill for more of our countries greatest drug, will a check show up in your mailbox?
A: No. They will not be sending you a check.
Q: If there is an increase in supply, does that guarantee a decrease in the price to the consumer.
A: No, prices are set by consumer's willingness and ability to pay for the product. The guy who runs the gas station on the corner knows that we are willing to pay $4 for it. As well as the distributor, the refinery, and the oil producers know this too. They will all want their piece of the pie.
Q: Is the level of demand on the world supply stalled and not growing?
A: No, in fact with India and China's economies in a boom, we can expect that countries with the two largest populations will be buying a lot of fuel over the next few years. So while company executives site a potential of 60 years of supply in ANWAR, they are basing it on liberal estimates using current numbers.
Q: Do Americans really want democracy and prosperity to spread throughout the Middle East?
A: No, that would mean more competition for the Oil we are addicted to.
Q.: How much oil does the US contribute to the world production status?
A: 2% of the total Oil contribution is made by the United States. We consume 25%. While there are many figures thrown about, conservative numbers say that we use 45% of our own oil and 55% we get from imports. Once those supplies start flowing it, our contribution will rise only to the level of about 3.5% at best. The Saudis main occupation is controlling market levels. They could easily compensate by reducing their production.
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