If you read Obama's speech on energy, you know it's not much of a plan. The only way he proposes to increase the supply of oil is to tap the Strategic Petroleum Reserve - a gigantic flip flop from his previous statements on the issue.
Otherwise, he would offer to support "limited" offshore drilling - but then would disincentivize any exploration at all by imposing a whopping "Windfall Profits" tax on the oil companies thus making it uneconomical for the oil business to actually look for new sources of crude.
Oh - and don't forget to inflate your tires to the proper level.
All in all, it is exactly what the Detroit News calls it; pandering:
Oddly, although Obama's proposal shows he recognizes the impact of supply on prices, he remains hesitant about lifting the congressional ban on off-shore drilling. Credit Obama for moving slightly away from the hard-line no drilling position of the Democratic congressional leadership by saying he'd consider "limited" coastal drilling if it were packaged with big increases in government subsidies for alternative energy development.
But at the same time, he proposed taking away any incentive oil companies would have to expand drilling and increase supplies by pushing a windfall tax on Big Oil's profits to fund the $1,000 rebate checks.
Perhaps the senator is hoping the checks will make Americans forget, as he apparently has, about what happened when Presidents Nixon, Ford and Carter played the price and profit limiting game the 1970s.
As weak a candidate as John McCain can appear to be, Obama is proving to be even weaker as he moves toward the Democratic convention. The best thing the Republicans might have going for them is the enormous overconfidence of the Democrats as they place all their marbles in the hands of this inexperienced, gaffe prone campaigner.
Hat Tip: Hot Air
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