When Bush lifted the Executive ban on offshore drilling, oil prices fell. Is this change we can believe in?

They kept falling when the Democrats took their regularly scheduled vacation too...





Supply and demand is above your pay scale, isn't it?When Bush lifted the Executive ban on offshore drilling, oil prices fell. Is this change we can believe in?
Actually you are more right than most people realize.





While issues such as demand do play a major part, there is another factor. We all know how everybody has been angry about speculators but that is another reason the price went down. In the simplest terms, all speculators are doing is predicting what the future will be for oil prices. When Bush lifted the executive ban, speculators assumed that there would eventually be more supply, which would drive down the eventual cost, therefore the price of oil went down. It would go down much more, IMO, if congress would lift there ban. When Bush lifted the Executive ban on offshore drilling, oil prices fell. Is this change we can believe in?
The price fall also corresponds to a drop in oil consumption, due to high prices, the economic slowdown, and driving restrictions in China related to the Olympics (they want nice, clean air for the visitors).





It also corresponds to the passage by Congress of a bill closing the 'Enron loophole.' Over Bush's veto.





If you want to get all post hoc ergo propter hoc on us, I can lay credit on any of those things.






Bush can lift the ban on drilling, Congress can lift the ban on drilling and the oil companies will drill their evil hearts out, but it will not do one thing to lower OUR gas prices!!! The oil companies will sell all that extra oil to the highest bidder just like they do now, and that is not us! The only thing accomplished is they will make even larger profits!


The oil they drill belongs to the oil co. not America, so unless we nationalize the oil, it will not stay here in America where we need it, it will be sold for a profit and we will still have to import the oil we need. What about this concept is so hard to understand?





Do the oil companies do anything for us now? Do they share their profits by lowering prices? The only thing that will change this vicious cycle we are in is to lower our usage, use alternative fuels and tell the oil companies where they can stick their drills!
LOL.





Show me articles claiming that prices fell because of Bush lifting ban. You guys can't because it was due to less consumer demand, not some imaginary move by Bush which physically did nothing.





Oh wait, republicans think gas prices fall because of psychology! Forgot about that.
At the same time. Mexico # in oil production did a 5 year lock on oil price at $135.00 A barrel. Byron Dorgan D North Dakota. Add to the Farm disaster bill to a measure to prosecute Oil Speculators. The Bakken Formation the 4th Largest oil Deposit in the world which is in ND and MT which holds between 300 Billion and 500 Billion barrels of Oil was all over the news. Americans had the biggest drop in driving for the month of June in history.





Yep it was all W's doing.
Pure coincidence. When the economy is bad, people are forced to use less gas, be it drive less or get greener cars. Either way, oil companies must lower prices in order to draw some customers back in. Simple supply and demand.
Um, no. Prices did not go down because of Bush. They went down because the economy is so bad that fuel consumption is going down
The one did not influence the other. Oil prices fell because of other factors. This is a basic logical fallacy: ';post hoc, ergo propter hoc.'; http://en.wikipedia.org/wiki/Post_hoc_er鈥?/a>
Bush Friends are in on this phony gester, so, no. As soon as John McCain is elected, gas prices are going over $10 a gallon and there will be nothing we can do about it. That you can believe.
If Bushy's words were enough to drop prices, why did he wait till gas hi $4 a gallon? Was it so his pals at Exxon Mobil could earn record breaking profits?





This kind of magical thinking tanked our economy!
Offshore Drilling is a Good Idea. As long as it doesn't harm the Immediate Environment, that is.
It also coincided with significant drop in DEMAND caused by the high price. That's how the free market works.
No. Inflating your tires is.
Sure.





He now yelled at Russia and prices are going up again.





More ';change you deserve';?
Yes yes yes....





I freak'n pointed this out as soon as it happened.





I say drill now and drill hard!



Yes. Gas went down .50 a gallon in my town since he did.
Yes, and it rained today when I opened my umbrella...must mean that I caused the rain!
I think you have your parties mixed up. lol Who knows what it is, but I'm not looking a gift horse in the mouth.
Yes, yes it is. If Congress would do likewise, they would plummet. On the other hand, Mr. Change We Can Believe In is embracing environmental policies like Cap and Trade, WHERE THE STATED OBJECTIVE IS TO GET GASOLINE INTO THE $5-6 RANGE TO ENCOURAGE CONSERVATION, AND MAKE ALTERNATIVES ECONOMICALLY FEASIBLE.


Thats not just what I think will happen. That is what proponents WANT to happen.





and killer - you forget to DRILL DEEP





STUDENT: I suggest you keep studenting a bit longer. Saying it in Latin doesn't impress anyone. No, correlation does not PROVE causation, but it is a basic tenet of the law of supply and demand that the market will account not just for existing supply, but also expected future supply, so that even a credible threat of increasing supply in the future will put downward pressure on prices today.





And it's kind of funny that the same people who were blaming speculators are now poo-pooing the idea that psychology could cause price changes. That is exactly what happened. Speculators are reacting to the idea that we have reached a tipping point, where increasing supply domestically is going to happen sooner rather than later, and so demand for oil futures dropped, and money went back into the stock market.