From the campaign of Christopher Cole, Libertarian nominee for US Senate
Elizabth Dole recently changed her position on offshore drilling. In response Democrat Kay Hagan complains that production from new fields offshore or in ANWR won’t come in to the market for approximately ten years. Dole was right in changing her position, and Hagan is right about the time lag for new gasoline at the pump.
But where Hagan is wrong and Dole is silent is about the impact of such a policy change on CURRENT prices at the gas pump. Only Libertarian Christopher Cole explains how that FUTURE production can
lower CURRENT prices, prices which are dragging down our economy and strangling the family budget.
What Hagan ignores is the role of expected FUTURE supply on current price. Due to OPEC intransigence and possible interruptions due to Bush policy against Iran, speculators fear interruptions to oil supply for years to come. They have therefore bid up prices on present shipments, in order to assure their future inventory. With that future supply assured by increased access at home, that price pressure will be removed, resulting in immediate easing of pump prices.
Cole supports open access to offshore oil and natural gas deposits, as well as those under federal lands, such as the Alaska National Wildlife Reserve. Not only would that assure future oil supply, but
it will provide economic growth and high-wage jobs in such regions as North Carolina’s coastal plain. Cole also disputes the alarmist response of some on the left who complain of ecological risks,
pointing out that major spills, such as the Exxon Valdez in Alaska, have always come from tankers, not rigs or modern land-based pumps.
For further information, Cole recommends this article from the Ludwig von Mises Institute, a free-market economics think tank, based at Auburn University: http://mises.org/story/3047
“The left has a massive agenda for the state at home, and yet complains bitterly, with shock and dismay, that the same tools are used to start wars and build imperial structures abroad. The right claims to want to restrain government at home (at least in some ways) while whooping it up for war and global reconstruction abroad.”
— Llewellyn Rockwell