$2

Written by Mitch Berg

Friday, 27 June 2008 06:38

A few weeks ago, Rep. Michele Bachmann - the biggest lighting rod for derangement in the entire Minnesota Congressional delegation - predicted that opening up domestic drilling could drive gas down to $2 a gallon sooner than later.

“Haw haw haw haw“, tittered the local Sorosphere.

But - oh, boy. A bunch of actual experts agree with her:

Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.

Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.

Krapels said that it wouldn’t even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.

Wow. Do you suppose Andy Birkey will update his story? Perhaps he needs to consult the Twin Cities Sorosphere’s most respected economist, Molly Priesmeyer, for advice on how to dig out of a factual hole.

Cross-posted and comments welcome at Shot In The Dark.

Share this True North article on your favorite social networking websites!