Energy: Gasbags

By: Times-Dispatch Staff | Times-Dispatch
Published: February 22, 2012

Is George Allen trying to be the next Nancy Pelosi?

Six years ago, with a Republican in the White House, gasoline prices were up around $3 a gallon. Pelosi and her fellow Democrats could not resist trying to turn that into a political issue.

"With skyrocketing gas prices," the San Francisco liberal raved, "it is clear that the American people can no longer afford the Republican Rubber Stamp Congress and its failure to stand up to Republican big oil and gas company cronies. Americans this week are paying $2.91 a gallon on average for regular gasoline — 33 cents higher than last month, and double the price than when President Bush first came to office."

Pelosi blamed the "two oil men in the White House." She said Democrats had a "common-sense plan to help bring down skyrocketing gas prices." She demanded that the Federal Trade Commission investigate "price-gouging." Hillary Clinton, Harry Reid, Rahm Emmanuel and many other Democrats parroted the party line that (in Clinton's words) "Today's record-high gas prices are the price that the American people are paying for the Bush administration's failed energy policies."

Democrats seized control of Congress. Pelosi became speaker of the House. And gasoline prices? They continued to skyrocket — to almost $4 a gallon. So much for the Democrats' "common-sense plan."

Now it's Allen's turn — along with House Speaker John Boehner, the GOP presidential candidates and the Republican Party generally, all of whom have decided to demagogue the gas-price issue in the hopes of hurting President Obama's re-election chances.

In a recent interview, Allen — who is running for Senate against another former Virginia governor, Tim Kaine — noted that gas prices have risen so much that filling a tank costs about $30 more than when Obama took office. According to Newt Gingrich, "Gasoline prices are unacceptable. We can do better!" As far as Rick Santorum is concerned, the price spike is part of the administration's radical environmental agenda. The Republican National Committee says high gasoline prices are emblematic of the Obama economy.

Rubbish. Obama is no more to blame for high gasoline prices than George Bush and Dick Cheney were. Nor is there any price-gouging going on. The FTC has investigated the oil industry time after time. And time after time, it has found zero evidence for collusion. Rather, market forces — supply and demand — have been the cause of the run-ups. Right around the time Democrats were demagoguing gasoline prices, for instance, the FTC reported that those record prices "appear to be a result of refinery outages, increased demand, and decreased imports."

Similar forces are at work today. Tensions over Iran have helped drive up the price of crude oil to more than $100 a barrel. Refinery issues also are in play, particularly in the eastern half of the U.S., where several major refineries recently have been idled or shut down. Neither price-gouging legislation (which is pointless) nor offshore drilling (which we favor) would have any measurable effect on these short-term spikes.

Perhaps it is inevitable that politicians would stoop to such nonsense. But it is certainly not inspiring.