Hi Rob
Oil Hits $107; Big Oil Not Worried About Dems
RUSH: Have you seen the price of oil? One hundred seven bucks, one hundred and seven dollars. "Gasoline prices following oil's recent surge are close to surpassing last spring's record. Gasoline prices were poised today to set a new record at the pump, having surged to within a half a cent of their record high of $3.227 a gallon. Meanwhile, oil prices surged to $107, a new inflation-adjusted record and their fifth new high in the last six sessions on an upbeat report on wholesale inventories." Now, I had a thought occur to me about this. A natural conservative reaction to this is, "Well, yeah, this is supply and demand, and we don't have enough of our own domestic supply. We got to import too much; we can't drill in ANWR; we can't drill in the Gulf. Well, we can't drill anywhere other than where we're drilling. We can't build any refineries, so how are we going to up the supply using our own supply which will bring the price down?" I got to thinking, maybe Big Oil doesn't care. Have you seen their profits? Big Oil's profits are through the roof and the Clintons and the Obamas are out there talking about how they're going to take all those profits.
Let's say that miraculously Congress passed a bill saying, "Yep, go ahead and drill in ANWR, and go ahead and drill for some oil in the Gulf to compete with what the ChiComs and the Cubans are trying to do with the Mexicans." Suppose Big Oil said, "No, we're fine. Our profits are really super, we would just as soon not plow in more R&D and development money into digging in these places, we're doing just fine right now, we're cool." Ha! If you were Big Oil and you're making all these profits, why would you want to -- well, obviously Big Oil's going to need oil down the road, but I can see playing it both ways.
