Is this a viable solution to reduce fuel prices in the short term?

Question

Or is this just another tactic of big oil and their dogs to ensure they keep receiving corporate welfare?

http://www.schnittshow.com/main.html

It will be 10 years before any oil we find today is in production! Did we really want to wait a decade and invest tax dollars that could be better used? Shouldn't profit be an adequate motivator for a proven technology such as oil? Shouldn't we use "cooperate welfare" to encourage new technologies and to promote improving existing technologies to secure our future energy interests? Isn't that a better approach to reduce our energy costs and dependency in the short and long term?

Answer 1

The only solution is for Bernanke to raise short term interest rates.

Some have suggested raising margin requirements - the spread over the exchange's actual cost of funds - but that is foolish - first, THAT would be corporate welfare, or exchange welfare; second, it would artificially constrain legitimate uses of the exchange - some long positions are held by suppliers of fuel to industry and to homeowners, and higher margin requirements would make long positions more expensive to hold, thus reducing supply; third, blaming speculators for high prices is like blaming the faucet when you overfill your bathtub.    

The problem is too much money and credit.    Greenspan fueled a bubble, he and Bernanke pricked it, causing the mortgage meltdown.   The Fed can control the amount of money and credit but it cannot dictate where it goes - - it's like feeding waterfoul by the river, you can toss the bread out there but you can't stop the geese from taking it all.    Bernanke cut rates, increasing the supply of credit, to try to bail out the mortage lenders, noteholders and ARM borrowers, but all the liquidity just went into oil.

Answer 2

THis discussion has been going on for 30 years. Had we allowed the drilling in 1997, we would now have our own sources of fuel and prices would be lower.  To say that drilling will take another 10 years is ridiculous, DRILL NOW so that in 10 years, we are not having this same discussion.

Answer 3

No, but I'm encouraged to notice that the guy's proposing using a wood drill bit to solve the energy crisis.  I have to give him credit for providing new ideas.  I'll go drill my backyard this afternoon.