More supply will bring prices down. But if I were Newt I’d be very careful about promising a particular price by a particular date. Markets just don’t work that way.
Newt told Chris Wallace on Sunday Talk, it will be in about 2 years. For the WH to call a presidential candidate a “liar” especially on the eve of do-or-die electoral battles in MS and AL is pretty serious stuff. This is unbecoming. But then again this is the Obama WH. But I think Newt needs to lower the boom on this one.
He’s never predicted a particular price by a particular date. In any economic discussion you have to be able to make estimates. Saying “it will go lower” is not enough. Newt has said $2.50 is the ceiling of where he thinks it can go, that it can go lower. Whether Newt gives a specific number or not, his energy policy will be considered a failure if gas stays at this price 4 years into his term. If it’s $2.75, I’m sure people will cut him some slack. No reason to be cowardly and not publically declare a goal.
Ye it could be problematic if OPEC cuts production in the short term to match increased production on our part.