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Location: Pantego, Texas, United States

Monday, August 25, 2008

Today in the Ft. Worth Star Telegram there is an article about how the drilling with new technology has dramatically increased the supply of natural gas in the USA. The increased supply has recently reduced the price of natural gas from $12 per thousand cubic feet a few months ago to less than $8 today. (In terms of energy cost, natural gas is now $8 per million BTU compared to $24 per million BTU for oil.) The Democrats must wonder how this can be, since they believe, or at least pretend to believe, that increasing supply will not reduce price. And, the Star Telegram says it will be two or three years before the really big increase in natural gas supply will reach the market. How can this be? The Democrats claim it will take at least 10 years for more drilling to increase supply. Democrats have claimed that the prospect of more drilling in the future will not reduce the price of oil today. But, in the case of natural gas that is what has happened. I doubt that Democrats will acknowledge what is happening with natural gas; they have no problem denying reality.

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