What's a President To Do

What can the President do about raising gasoline prices? Not much. He can make sure laws were being followed and no manipulation of the market is taking place. The President can not and should not interfere with the markets, any markets. If the American consumer does not want to pay the current price, then consumption will go down and prices will follow. Congress and the President should provide for more drilling domestically and particularly on Federal Lands including ANWR. They should also remove some of the ridiculous hurdles standing in the way of improving refining capacity. This simply put is “economics 101” supply and demand. We Americans demand too much oil and have not done the things that are necessary to maintain a growing supply of oil and the ability to process it that corresponds with demand growth.

How is government intervention in the market going to solve anything long term? The bottom line is we need the following combination: more domestically produced oil, alternative means of energy, reduced consumption and an increase refining capacity. Let’s quit trying to blame someone and do something about it, because we American’s have no one to blame but ourselves. Whether Big Oil or Small Oil, the market rules are the same as any other private company in this country. They have a product to sell and they are going to sell it for as much as the market will bear. Competition is the answer and OPEC holds too much market share. We are right where the Middle Eastern Country’s want us. Dependant on them to satisfy our desire for oil.

All energy is costing more because we continue grow demand and capacity has not kept pace. We all share some of the blame it’s time to do something about it. If the government is going to do anything meaningful, they need to let the energy industry do what they do. Find and produce oil, natural gas, electricity and alternative fuels. Remove the obstacles. It’s that simple.



Footnote: I heard today on news that corrected for inflation, oil is up 60% over the last 20 years. Congress’ salaries are up over 200% over the same period. Perhaps we should investigate, regulate and windfall tax the Congress. They’re getting richer and we are not. Congressman Mollahan’s net worth grow several times more than Exxon did over the last 5 years and no one seems to care about that. We need to quit looking in other peoples pocket and do what is necessary to solve the problems.

Monopoly Advertising

It is hard to understand why Brick Street, the monopoly enterprise offering Workers Compensation Benefits is spending rate payer dollars on an advertising campaign. It makes no since that they should be allowed to spend rate payer dollars to promote the Company when they are the only one allowed to offer the benefits. They have an absolute monopoly as state law prohibits any other company of providing the services of Brick Street. Why are they doing this? Could it be because there will come a time in the not too distant future when other companies will be allowed to enter the market which will create some competition for Brick Street. In addition, is Brick Street scheduled to become a private company with private stockholders?

If Brick Street becomes a private company then the stockholders of the then private company will be the beneficiaries of advertisement which were paid for out of the rate base. This seems highly unethical and not fair to those who are paying for Brick Street or those who will enter the market to compete with it. I think we need to learn who the private stockholders will be of this state organized company who enjoys an absolute monopoly.

Spending rate payer dollars on advertising to promote a monopoly is ridiculous. What is next, the State Tax Department advertising to promote the services it provides through the Department of Highways?