The GOP’s new slogan, “Find More, Use Less” is useless.

Ok. Let’s talk a little about the realities about the oil market.

It is a global market with China and India desirous of more and more oil. Regardless of our minimal conservation efforts, prices still rise, because global demand has not decreased.
Speculators negatively effect the oil market for consumers. Once the US government opened up the futures market to non-consumers, pure paper speculators, the market has become more volatile.
The oil market is still just a market, thus the rules of supply and demand drive prices and behavior.
Let’s break this down a little further.


Find More.
The US oil companies are making win fall profits on the constricted supplies. Though this might not be driving their behavior, they already have leases to drill in the Gulf of Mexico that have not been explored or exploited for more than a decade. This is because the oil companies, like all business, don’t actually have the unlimited resources to explore and develop.

Even if they start to drill in those areas or got access to the wildlife reserves, what do you think the benefit would be to the consumer?

Nothing (see point 1 above.)
The additional oil supply, which would likely only be an increase of 1-3% at maximum, would just go into the global market and fulfill the global demands. The people who would benefit most are the oil companies and the politicians they support.

Use Less
I am a strong believe in conservation, but this wont solve our problem either. Frankly, the free market has been working to benefit the US. Because of the high prices, gas efficiency standards have improved. In December 2007, CAFE standards received their first overhaul in more than 30 years! Most all of the major car manufactures are reducing their truck fleets and making battery powered cars!

So what can the government do? Well, regulating the speculators would be a great first step. And here is a thought, why not use the Market to effect positive change. Since the high gas prices has made car companies change their fuel efficiencies without government regulations, and it has consumers moving close to their work or taking public transportation, why not use the tool of tax to drive better behavior? What if our government actually raised taxes on gas and diesel? Used the taxes to further curb demand and use the funds to give incentives for truckers and farmers to transition to more fuel efficient or non-fossil fuel based equipment.

Frankly, since we live in a free market. I bet you prices would even drop when it became apparent that the US was serious about reducing the Oil consumption. Funny that, but we don’t have the political will for such actions since the oil companies help elect our representatives, like Senator John McCain. He has taken on the traditional GOP party line because he is funded though the traditional GOP channel, big business. Thank you for personally approving this message: www.youtube.com/watch

Original can be found at dennismueller.org/blog/