Pelosi: Having More Oil Won't Lower Oil Prices

Clearly Nancy Pelosi has never heard of "supply and demand."  It's a simple concept, really: the less of something you have, the more expensive it is because of its scarcity and vice versa.

Apparently no one ever told this basic concept to disgraced Democrat Representative Nancy Pelosi.  Taking to Twitter, she exclaimed yesterday:

The problem is, as usual, the facts simply do not agree with Ms. Pelosi.

You might notice that she linked to an article from CNN.  As is often the case with CNN, their facts are muddied as well.  In fact, even in their own story they admit to over-selling their headline, which was "Drill baby drill won't lower gas prices":

While increased oil and gas drilling in the United States may create good-paying jobs, reduce reliance on foreign oil and lower the trade deficit, it will have hardly any impact on gas and oil prices.

For anyone who knows the English language, "hardly" does not mean "none."  It means little.  So, what is the definition of little?  Well, shocker, CNN leaves that out completely.  Is a drop from $4.00 a gallon to $3.99 the "hardly" they are referring to, or is a $4.00 drop to $3.50 "hardly any impact."  Well, it's up to you the reader to decide.

Even worse is the Democrats complete ignorance of much of what drives prices up.  If I'm not mistaken, President Obama just launched a "gas speculation task force."  In other words, people drive up the price of oil and gas based on what they perceive and not based on actual amounts of oil.

So... if speculation is the cause of much of the rise in gas, wouldn't drilling for oil (which would cause an increase in oil) drive prices down?

Pelosi

In other words, more oil equals more supply, which would drive prices down simply through supply and demand.  On top of that, it would cause speculators to believe that there is more oil (because there would be), and therefore drive prices down more.

Congrats, Nancy, you're wrong not just once, but twice-over.

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