YOUR COMMENTS

This article is quite laughable.
You compare our oil, gas, and refinery system that is linked to a global cartel and a few independent producers to "economics 101" without a single explanation that this commodity is strictly controlled in terms of output. Think of diamond prices. There is no shortage of diamonds in the ground. It's another highly profitable commodity who's volume on the market is precisely monitored, or manipulated if you will. The rise in fuel prices is more closely linked to the decline of the dollar's value than it is to a lack of supply. Unfortunately, this doesn't make for good soundbite politics or talking points designed to make one party look better than the other. Both Republicans and Democrats have run this country and it's economy into the ground. Start electing independents now.
- HC, Penacook

"Let's not limit our solutions, the market will take care of that. ... We will be improving supply and working on our long term solution to several issues."

Does this suggest that we spend money to investigate alternate energy sources, such as ethanol, wind power, etc., with no thought of financial risk? The market (and physical science) will surely decide, and hand ill-advised investments in such shams huge loses that the American tax payer will have to absorb, and we'll still be no better off energy wise.
- J. Pownall, Fredericksburg, VA

JohnC,

Inconvenient to your argument, 63% of Norway's gasoline price is in taxes. This is because they choose to artificially depress the use of oil in their country - and it works. They use less oil per capita than most any other non-third world country.

Norway's oil is also on the world market and there is no way they're ever going to sell it at home for very much cheaper than they can sell it on the market.

It's called capitalism. Why don't you just put all your cards on the table and admit you want to nationalize the oil companies?

Because once we do nationalize, our government will open up all proven oil reserves for drilling because it will be government who will reap the profits (oil sales as well as taxes).

Just like Norway.
- Rick, Indianapolis

If any of the "experts" here that support more drilling can explain their plan to refine the additional oil pulled from the ground then I will support any off shore drilling.

The bottleneck in supply is at the refinery level. Do yourselves a favor and research worldwide refining capacity. Let me know what you come up with. The oil companies will use the current state of the oil market to get more untapped resources (there is currently millions of acres of leased land that they refuse to use) to gouge us later.

More oil cannot be the solution to getting off oil.
- John R, Keene, NH

All of these comments are interesting but like politics, do little to create solutions. Let's drill the easiest areas to get the most oil, make the royalties to the oil companies a percentage of the profit of the sale, (50%?), and use the money to fund the implementation of alternative energy and research. Let's not limit our solutions, the market will take care of that. The oil companies are using US owned leases, lets put that money to good use. We will be improving supply, and working on our long term solution to several issues.
- David Mellon, La Crosse, Wisconsin

We currently have five different areas (Florida coast, California coast, Gulf of Mexico, ANWR and off shore in Alaska) of our country where we have known oil reserves that we won't allow any company to drill for. That's potentially a larger oil reserve than most oil-exporting countries have. The problem is not oil. Its politics. The Democratic leadership is 'owned' by the environmental and litigation lobbies and they succeeded in making domestic energy production (of almost any kind) either uneconomical or outright forbidden by law. As long as they control congress and current law remains in effect, energy prices will rise because world oil demand is rising as a result of the emerging economic growth of China and India.
- TRibar, Phoenix, AZ

Drill drill drill, boy you Repubs want to drill. If we let you drill offshore, prices will go down - ANYONE can see that right? Then why is it that Norway, the 3rd largest exporter of oil in the world, has a per gallon price of $6.60 despite North Sea drilling? Maybe it's because the oil companies can make more exporting it? If I saw a Republican proposal to drill offshore and in ANWR with the stipulation that all oil stays here to help reduce our dependency on others I would sign right up. But you won;t see that, because it violates the concept of free enterprise, which of course means perpetually ensuring that companies like Big Oil can continue to screw us blind. You want to do this for America's benefit, put it in writing. Put it in law.
- JohnC, Newfields

Democrats want high oil prices. Thats how they will win this election year. They have been in charge for two years and have done absolutely nothing but balme Bush even though they have yet to pass an energy plan of their own. This is election year politics at the price of the middle & lower classes going broke to get to work. Funny haw a bad economy and bad prices for consumers is a GOOD thing for Democrats.


Just the threat of the US drilling for its own oil would drop the prices as the "oil countries" would be afraid that we would become less dependent on them for oil and take care of our own. I think the US Military should drill, drill now, drill often, and then flood our country with our own oil with a deal that we do not put it on the world market. Much like China, only they drill for some and buy the rest and then sell it in their own economy with very low prics to keep their business costs down to take over the entire manufacturing sector of the economy.
- Dave, Hopkington

What global warming? For heaven's sake people, wake up and smell the coffee.
- Ron, Littleton

The only real lasting solution to the oil problem is to throw all the politicians out of Congress. Any congress person who can't figure out what supply and demand means isn't worth the salary and expenses we voters pay for their service. They all need to be turned out to pasture. Anyone with half a brain can understand the proposition that prices will increase on anything that people need and the product is becoming more scarce to the market. Oil isn't our problem it is politicians!
- Al Barrs, Greenwood, Florida

I agree with every thing said in this editorial except one. A wind fall profit tax will reduce demand marginally because that tax will be passed through the oil companies to the cosumer resulting in higher prices at the pump.
- Steve Smith, West Allis, WI

There are a myriad of problems with this editorial beginning with the supposition that Democrats are actually behaving any differently from Republicans. The talk may be different but meanwhile the Republican administration is calling the shots and the Democrats have done nothing to reverse it. From that standpoint you can blame the Democrats for bad energy policy but blame them for following thr Republican lead. As so many economists, Martin Feldstein doesn't know what he's talking about any more that the editorial writer. Increasing the expected future supply would have minimal impact on current oil prices when that future is 10 years down the road. And if, as he claims, that fall in price would increase present consumption that would drive the price right back up. The best way to decrease the price of energy is by a massive government led program inspiring the private sector, perhaps by competition between the feds and the prives to establish clean, safe, renewable alternatives energies. That's where the 4 triilion dollars thrown away by this administration should have gone (and you can blame the Democrats too for letting them do it). Then, you would see oil dropping dramatically. And don't put too much faith in Harvard. They graduated the "Commander guy."
- Peter, Escondido, CA

The people of this country need to wake up. The Democrats just don't care about high gas. So why should anybody vote for a Democrat for anything? Answer-You should not vote for any Democrat that doesn't support off shore drilling. AAlso any Democrat that wants our children to learn Spanish is a fool!!!
- mike spagnola, nj

Now here is something that we need, an economics lesson from the people who told us that Iraq would pay for its own invasion, that global warming will just go away if we stick our heads in the oil sands, that shrink wrapped pallets of hundred dollar bills don't matter if they are lost in Iraq, that running the National Debt up Nine Trillion dollars is just a small and temporary problem, that privatising Social Security will get those lazy seniors off their couches and working themselves into the grave at WalMart. You may think that someone understands macroeconomics but all those claims turn out to be clams when the next down economic cycle occurs. It's always someone else's fault and due to unexpected changes in climate. Here's what seems to have worked everytime since Ben Franklin stated it. Take in more than you spend and don't lie about it. We are awash in debt - your share is over thirty thousand dollars. All brought to you by those economic experts with their axes to grind.
- Robett, Deerfield

It is time our politicians start addressing the needs of the people they are suppose to serve. How many people in NH are not going to be able to afford heat once November is here. If a politician won't support opening up area of known reserves, support building refineries, support building nuclear power plants, and support expanding the use of our vast reserves of coal, they should be removed from office. Look at the auto manufacturers, they are lowering prices because of over supply. The same thing would happen with energy if we hurry up and start drilling.
- John Wishbone, Derry

A Houston oil executive said it takes 2 1/2 months to reach oil on a land based operation and one more month to get the oil flowing into a pipeline. Dems are so dumb when they lie stating it will take 10 years for oil to reach a pipeline. The major problem is lack of drilling rigs worldwide. There are almost no land or sea oil rigs available for current drilling.
- John Walsh, Ft Lauderdale, FL

I have two words for you.

RIGHT ON!

You couldn't write this better.

Thank you.
- Alan Rosner, Dallas Texas

It is obvious that most Democrat House and Senate officials are to blame for the energy prices. They have bought into the left wing nut case policy of damaging the land, animals, air, etc etc. This is all nonsense. Drilling can be done safely with todays technology and also a big push for alternative sources should begin at once. Democrats and Republicans who are against drilling and nuclear power should be voted out of office. I know that I am voting against the N.H. politicians who are against drilling. People of New Hampshire need to vote against Jean Shaheen,Paul Hodes, and Rep. Carol Shea-Porter. A vote for them is a vote for much higher prices at the pump. Let's all wake up and do our duty and get these radicals out of office before it is too late.
- Richard Dirsa, Dalton, NH

Indeed--we are going to be in rough shape unless (and until) we replace enough of the clueless liberals & Democrats in Congress; & elect John McCain; in order to implement a sensible energy US policy.

In addition to the sources cited in the editorial, the highly respected journal The Economist printed an article this week entitled "The oil price: Don’t blame the speculators." ( http://www.economist.com/opinion/displayStory.cfm?source=most_commented&story_id=11670357 )

; summarized by the quote;

"Politicians who try to make oil cheaper by restraining speculation will just make things worse."
- Paul Sylvia, Concord

This editorial is pure idiocy. A WSJ writer recently surveyed the heads of oil companies to find out why they weren't exploiting the leases they currently own. Not one person responded that there was a lack of oil. Generally the response was "we're making enough money off of the current stocks and cannot justify the capital expenditures of retrieving these holdings". They are basically holding onto these leases to keep supply down and costs up. Now you (and the rest of the Hannity crowd) want to give them the rest of the country's potential holdings so that they can essentially corner the market?

Any economist worth their weight will tell you that the quickest way to lower the supply/demand curve is to reduce demand. Increasing supply always takes longer to impact the market. You've clearly identified the wrong person in need of Econ 101.

Oh, and you should have a sit-down with one of your journalists. Benjamin Kepple's article on the oil industry today says, "the major driver behind the higher cost of heating oil is the underlying cost of crude oil...Speculation has been a big part of that increase, as evidenced by volatility in the market." He clearly hasn't drunk the neo-con Kool Aid in the UL break room.
- Jason, Londonderry

Now here is something that we need, an economics lesson from the people who told us that Iraq would pay for its own invasion, that global warming will just go away if we stick our heads in the oil sands, that shrink wrapped pallets of hundred dollar bills don't matter if they are lost in Iraq, that running the National Debt up Nine Trillion dollars is just a small and temporary problem, that privatising Social Security will get those lazy seniors off their couches and working themselves into the grave at WalMart. You may think that someone understands macroeconomics but all those claims turn out to be clams when the next down economic cycle occurs. It's always someone else's fault and due to unexpected changes in climate. Here's what seems to have worked everytime since Ben Franklin stated it. Take in more than you spend and don't lie about it. We are awash in debt - your share is over thirty thousand dollars. All brought to you by those economic experts with their axes to grind.
- Robert, Deerfield