http://bearingdrift.com/2009/11/12/obama-administration-sitting-on-its-hands-on-energy/ Sat, 26 May 2012 17:56:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://bearingdrift.com/2009/11/12/obama-administration-sitting-on-its-hands-on-energy/#comment-22517 Max Shapiro Thu, 12 Nov 2009 14:30:46 +0000 http://bearingdrift.com/?p=9967#comment-22517 The rise in gas prices has more to do with increases in the money stock and the fact that the dollar wont be the standard of measure for oil very much longer. An increase in domestic supply would not affect price levels for quite some time. It could be assumed that the announcement of exploration would lead to a price reduction simply because the price of oil is so much speculation, however such an announcement would more likely precipitate Iran and the GCC moving away from the dollar at an even faster pace. Increased domestic production would further destabilize the price of oil and this is not something OPEC wants. The rise in gas prices has more to do with increases in the money stock and the fact that the dollar wont be the standard of measure for oil very much longer. An increase in domestic supply would not affect price levels for quite some time. It could be assumed that the announcement of exploration would lead to a price reduction simply because the price of oil is so much speculation, however such an announcement would more likely precipitate Iran and the GCC moving away from the dollar at an even faster pace. Increased domestic production would further destabilize the price of oil and this is not something OPEC wants.

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