Posted by
reasonmclucus on Wednesday, August 27, 2008 4:08:36 PM
Democrats have been criticizing oil companies for making
high profits while hoping the public will be unaware that Democrats
have been pursuing policies that help oil companies make high profits.
One of the first concepts taught in Economics 101 is the law of
supply and demand. When the supply of a commodity or product is
low, companies can charge more for a commodity like oil.
Democrats by limiting the ability of oil companies to drill for oil are
helping the oil companies keep oil in a short supply so that oil
companies can charge high prices. Limiting drilling also helps
oil companies keep their costs down.
Drilling for new wells is very expensive so paying to drill new wells
reduces oil company profits. Increasing the number of wells
would require oil companies to hire more people to operate the wells.
Oil companies know that the oil that is off our coasts or in Alaska
will still be there in a few years and the demand for oil will continue
to increase unless there is a major economic calamity like the Great
Depression. The longer they wait to drill, the more they will be
able to charge for the oil when government allows them to drill for
it.
The new politicians who will be elected to authorize drilling will
likely be less concerned about any adverse environmental consequences
from accidents near drilling sites. Environmentalists will have
much less influence after it becomes obvious that they have lied
about carbon dioxide causing higher temperatures.