Thursday, March 24, 2011


Some Democrats want to add additional regulation and limitation on oil speculation. They seem to think that oil speculation is driving up the price of oil. While most Americans want gas at a lower price, the Democrats' plan won't solve the problem. Oil speculation will continue in foreign markets, and the root cause of higher oil prices is increasing global demand combined with the United States' failure to increase its own domestic production. Additionally, the members of OPEC are able to continue collusions to keep prices high.

Oil speculation can be a lucrative business. If one invests in oil, they can make money in the short term or the long term. However, there can also be short term and long term loss. As with any commodity or other investment, there is risk. The price of oil comes down to supply and demand. As President Bush identified during his term in office, "America is addicted to oil." If Democrats want oil prices to go down, then they need to put forth solutions that will reduce our demand for oil, increase our supply of oil, or provide a combination of both supply increase and demand reduction.

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