We can bring down oil prices without drilling using nothing but words. We have the historical proof

The chart to the left is a depiction of price-per-barrel crude going back to 1996. At one point, the low ppb was 17 dollars. On Friday, July 11, 2008, oil prices rose to a new record of $147.27. Within six months, that price had fallen to just over $33 per barrel.

Click on image to enlarge

What happened? The Democrat controlled congress (the 110th) refused to do anything substantial to deal with the problem such as opening drilling policies, yet, oil prices plummeted.

Back to the fact that the Dems refused to do anything during this time of extreme crisis. I cannot over emphasize the level of inaction we saw during this time. Understand that this rise in fuel prices was the impetus for the current recession . . . . . not the reason for the crisis but the trigger for our economic implosion.

On July 10, the United States had two restrictions against drilling; one was a congressional/legislative restriction and the other was a presidential prohibition. Understand that the congressional restriction prevents the expansion of drilling [in this case] apart from any presidential decree. In other words, it should make no difference what the president does if legislation is in place to prevent drilling. With this scenario in view, a presidential decree would appear to be rather worthless with regard to oil price control.

But history proves this to be wrong. As we have pointed out, the morning of July 11 saw oil rise to a record all-time high. On Monday morning, July 14, it was announced that President Bush had reversed the presidential prohibition against drilling and before that day was over, the price-per-barrel began a downward trend that bottomed out at $33 per barrel. Nothing had changed except for that presidential decree.

Why? Futures. That's right, "futures." Literally, the very second investors realized that oil drilling MIGHT be expanded, based upon Bush's action, they began to run from their investments in the future price of oil.

I do not believe that investments in oil futures is as much a problem as it was three years ago, but there is no doubt that it is a contributing issue. And what are we doing about oil prices? Well, we are talking about opening up "oil reserves" rather than backing off our tight hold on off-shore drilling permits. Stupid wrong.

Understand that all we have to do is start talking about drilling and the price-per-barrel will be effected in a positive way, to some extent.

Imagine. We cannot even get the rhetoric right !! Incredible.