09 July 2008

Speaker Pelosi’s Super-Short-Term Solution

Fox News reports that House Speaker Pelosi has asked President Bush to “draw down a small portion" of the strategic oil reserve in order to drive down gas prices. Essentially, this is a one-time shot of oil supply into the market, and Speaker Pelosi appears to think that this will alleviate $4 a gallon prices.

As the leader of the Democrat majority in the House, Speaker Pelosi may want to reconsider drilling offshore, as well as opening up other sources heretofore held back from the ever-greedy oil companies. Releasing a portion of the strategic reserve will only have the shortest of short-term effects on gas prices. Medium- and long-term plans and goals are necessary.

I don’t think it is coincidental that a Rasmussen poll, released on Tuesday, shows that only 9% of those polled think Congress is doing a good or excellent job. The poll shows that 52% felt Congress was doing a poor job.

As a side note – not having to do with Speaker Pelosi but having to do with Congressional members and “big oil” – The Hill did a piece at the beginning on July cataloging which members hold oil stock. The article is quite instructive.

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