In a surprising move the Republican Presidential candidate is supporting a move to lift the ban on oil and natural gas exploration. This can be found at Yahoo News! here.
“I believe it is time for the federal government to lift these restrictions and to put our own reserves to use,” he will say. “We can do this in ways that are consistent with sensible standards of environmental protection.”
We can all remember that Congress continually wastes the oil executives’ time in calling them to Congress to talk about profits. The New York Times has their recommendations to Congress here:
“And the oil executives warned that government intervention might only make things worse. Instead, they called on Congress to allow more drilling and exploration for domestic oil, both in the Arctic National Wildlife Refuge, and offshore in the Atlantic and Pacific Oceans and in the eastern Gulf of Mexico.”
The problem is demand has shifted up with India and China while the supply has stayed the same. In Mexico, the state owned enterprises have not tried to innovate or explore. This would be expected because the government can only be so good at running a oil company. We are lucky to have privately owned oil companies but at the same time we tie their hands behind their back and tell them to lower prices.
It is about time that a politician understand supply and demand. I was about 80% sure I wasn’t going to vote for Senator McCain but he isn’t doing a bad job of switching it around.