Alex Beroza
Posting #3
Leaders
Helene Cooper
Obama Calls for Increased Oversight of Oil Markets 4/17/12
1 Page
http://thecaucus.blogs.nytimes.com/2012/04/17/obama-to-call-for-increased-oversight-of-oil-markets/?ref=politics
On Tuesday, the President called for an increased surveillance on oil
markets, and the illegal things that happen everyday in the oil
industry. These illegal deals and happenings have led to market
speculation that as a result leads to increased prices at gas pumps.
The Republican Party has been blaming the lack of oil production and
drilling from the United States as a main reason why our gas prices
have been going on the rise lately. But Obama has countered by saying
that we only hold 2% of all the worlds oil preserves, and that no
amount of drilling will make a noticeable difference for our economy. He even went on to say that we have increased our drilling by a noticeable amount and that this still really isn't the answer. Instead, Obama has produced an idea to make it harder for Wall Street speculators to drive up oil prices based on their predictions. This in my opinion is a good idea, and is backed with evidence that more drilling is really not a viable long-term solution. This 52 million dollar policy will also help further balance the gap between the super rich, and everyone else, which I believe is vital for the recovery of our economy.
I agree with President Obama, if the U.S. holds only 2% of the worlds oil, we will have to make do with international oil markets. The answer to rising oil prices, like Obama suggests, should not be more drilling, but dealing with the real problem of speculation driving up energy prices.
ReplyDeleteThe $52 million he plans to spend seems like a lot of money, but it will save U.S. consumers money even if it only reduces oil prices by a hair. It's a tough sell to congress, but if Obama doesn't manage to restrain oil prices from rising past $4-5, it will seriously hurt him in the upcoming election.