A few weeks ago, Rep. Michele Bachmann – the biggest lighting rod for derangement in the entire Minnesota Congressional delegation – predicted that opening up domestic drilling could drive gas down to $2 a gallon sooner than later.

Haw haw haw haw“, tittered the local Sorosphere.

But – oh, boy.  A bunch of actual experts agree with her:

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn’t even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

Wow.  Do you suppose Andy Birkey will update his story?  Perhaps he needs to consult the Twin Cities Sorosphere’s most respected economist, Molly Priesmeyer, for advice on how to dig out of a factual hole.

18 thoughts on “$2

  1. It’s magic! Wells that won’t come online for a decade will halve the price of oil on the world market today! Stupid doubting Soroses!

  2. Your ignorance in how futures market works surprises me. I thought you were smarter than an average clown.

  3. Even if oil prices drop by half, gasoline prices won’t drop in half. Bachmann’s $2/gallon gas is still pie in the sky…

  4. A pie in the sky is better than one I have to pay the the schlub at Superamerica.

  5. Angryclown does understand, justplainangry. He understands that current market is driven by speculation and has little to do with rational projections of supply and demand. The market is in an irrational phase. “Psychological” relief is not the answer.

  6. So a problem that originates in psychology can’t have a solution that originates in psychology?

  7. Physical drilling for domestic resources is not a purely “psychological” relief. It is also a supply relief. Making resources, hereto unavailable to the market is a double whammy, so to speak. Stopping US$ slide would also help, maybe even more so than drilling, which we should do regardless.

  8. Well, there is always Holiday!

    Have you seen what 2-liter bottles of pop cost there? THAT’s a scandal!

  9. I pay at the pump today b/c i abhor prepaying, thus I rarely set foot in a gas station store nowadays.

  10. Have you seen what 2-liter bottles of pop cost there? THAT’s a scandal!

    If memory serves me correctly, Exxon pioneered the gas station/convenience store concept as a way to earn money for their independent gasoline retailers who were barely eeking out a living on price of gas alone. Blame Big Oil for the price of that pop! Viva capitalism!

  11. Maybe Birkey will update his story with a quote from someone other than Elwyn Tinklenberg, her Democrat challenger. You know the guy: he ran MNDOT for a while in the not too distant past, but blamed “Evil Republicans” (TM) for screwing up on the 35W bridge.

    Yes, that reliable source.

    I don’t think he will, however, as he probably views his DFL hay-making job as complete…

  12. I cannot think of anything more intellectually retarded than read differing opinion pieces from two different bloggers, on the “same page” in a group blog, and not only finding it “ironic”, but a:

    “illuminating moment of conservative zen”

    Progressive bloggers may call each other and make sure the opinions they are about to express are “OK” with the rest of the group, if they haven’t read them in talking points somewhere beforehand, but that behavior is “special” not good. People with more than a single cylinder intellect will be reassured to find more than a single set of opinions on their side of the political fence: it means more than one person is actually thinking.

  13. You gotta stick with SuperAmerica. Jumbo dogs, pork egg rolls, and ranchero steak and cheese tornados: 2/$2. Not to mention the killer donuts, 2/$1.39, and the .79 fountain and frozen drinks all summer long.

    Holiday’s got nothin’ on SA!

  14. I can take or leave donuts, but I love me the eggrolls (when they’re fairly fresh, anyhoo).

  15. Pingback: Shot in the Dark » Blog Archive » Irrational Depression

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