SEARCH BLOG: OIL
Oil has declined to about $116 per barrel from its high of over $146 per barrel.
That's some good news for most of the economy. Of course, the bad news is that is because of reduced demand due to an economic downturn.
As Obama's website states:
Plan for a Clean Energy FutureWell, yes. Conservation has always made sense. Forced conservation in the form of an economic malaise seems to make far less sense. Can we conserve our way to economic prosperity? Probably not in our lifetimes. Can we come up with a replacement for gasoline/diesel fuel vehicles? Probably not for at least 25 years. Is it the fault of the automakers that the marketplace sought larger vehicles? Probably not. Is Congress' mandate, which Obama has claimed as his own, the answer to more fuel efficiency. Probably... through the elimination of larger vehicles and replacement with much more expensive powertrains.
“Well, I don't believe that climate change is just an issue that's convenient to bring up during a campaign. I believe it's one of the greatest moral challenges of our generation. That's why I've fought successfully in the Senate to increase our investment in renewable fuels. That's why I reached across the aisle to come up with a plan to raise our fuel standards… And I didn't just give a speech about it in front of some environmental audience in California. I went to Detroit, I stood in front of a group of automakers, and I told them that when I am president, there will be no more excuses — we will help them retool their factories, but they will have to make cars that use less oil.”
The real question is whether Obama's plan is necessary if Congress gets out of the way of the marketplace and stops restricting the supply side of the price equation. Despite Obama's best protests to the contrary, removing restrictions on supply will freely affect prices at least as much as forcing the people of the U.S. to do without... or with much less.