We Were Told

Just months ago we were told that the price of gas was what it was going to be from then on, $4.00+. We were told by most politicians that we could not "drill our way out of it".

Prices are now hovering just above the $2.00 range. We have not drilled our way out of it, but the week after both parties started speaking of drilling, the futures contracts started falling. The economic downturn has also greatly impacted the price as well.

The thought that the price of a commodity is to be forever stuck at one price is ignorant. Prices go up and they go down, only to go up again. There can be no argument that a big reason for the lower price is due to lower demand. So demand is lower than the price of $4.00 would allow. So it would seem if the demand was still allowing for a $4.00 price and drilling pumped more oil into the market, we would effect the supply side of the equation.