My doctorate is not in economics, but I do have a couple of degrees in that field and the argument that futures speculation was driving the recent price increases was never coherent to me. I have not heard anything on the side of those who want to claim that it is speculators ginning this which amounts to much more than wishful thinking and hand waving. Granted this is the standard for politicians and they are in desperate need of a scapegoat - but that still doesn’t make the case.
My doctorate is in economics and I agree with you 100%. Others on this forum have stated that $175/bb is here to stay. I think that may be true in the long run, but I think that long run is only as far away as Congress's willingness to make new supplies available now. There is no reason that we have to accept $175/bb oil now and into the forseeable future. At current prices, remote drilling (ANWR), deep water drilling (OCS), and shale oil and tar sands (most of which is federal land holdings) are all economically viable and we will see those sources tapped. However, there will be no movement to ease the problem until after Nov. In the meantime, the public needs to beat on Congress for a real explanation of why we aren't drilling when we know there's oil to be had. This bullsh@# about not coming on line for 10 years and even if it did, it wouldn't make a difference is simply political nonsense. With a 9% approval rating, you'd think they'd try to do something good for the American consumer...but, no. They have their political agenda and you and I will pay the price. Their behavior is disgusting.