The president is looking into collusion (although he calls it fraud or manipulation; and George Bush was the idiot), as well as the impact of the evergreen bogeyman of the Left, speculators.
“The attorney general’s putting together a team whose job it will be to root out any cases of fraud or manipulation in the oil markets that might affect gas prices – and that includes the role of traders and speculators,” President Obama said at a town hall meeting in Nevada on Thursday. “We are going to make sure that no one is taking advantage of American consumers for their own short-term gain.”
I’m not an economist, but I’m going to really take a risk and speculate that the reason for the high oil prices is a case of the simplest thing taught in economics: supply and demand. The world has a huge and increasing thirst for oil (India and China won’t modernize with whale oil), there’s unrest in the middle east, and–stay with me, I’m gonna go arcane on you–we’re not developing U.S. oil reserves like we should. So, recalling my Econ. 101 class with Dr. Mishra long ago, high demand + low supply = high prices. Every. Single. Time.
But it’s not like the media is going to link things like the Obama administration’s drilling ban to the rise in gas prices.
On April 20, 2010, a horrific oil spill took place in the Gulf of Mexico on British Petroleum’s (BP) Deepwater Horizon rig. Since that day, gas prices have risen nearly $1-a-gallon to $3.83 per gallon. President Barack Obama’s anti-oil policies, including a drilling moratorium are at least part of the reason for that dramatic spike. But you will rarely hear that from the mainstream media.
It certainly isn’t the story the network evening news shows have told their viewers since the oil spill. Out of 280 oil price stories since the disastrous pill, just 1 percent (3 out of 280) mentioned any connection between Obama’s anti-oil efforts, such as the drilling moratorium, and rapidly rising gas prices.
Supply. Demand. Learn it, know it, live it.