Ed Wallace suggests the gas shortage isn't real.
President George W. Bush has taken an economics class or two. Given a recent Associated Press quote, it's safe to assume this Harvard Business School graduate even learned the basics of supply and demand.
So how can both President Bush and the U.S. Energy Secretary inaccurately say America's gasoline demand is outstripping supply?
Automotive journalist and business writer Ed Wallace wanted to find out.
In a recent BusinessWeek column, Wallace slammed President Bush and Energy Secretary Sam Bodman for attributing higher gasoline prices to a decrease in crude inventories. According to Wallace, America's gasoline reserves are "at the highest levels since the early 1990s" and figures say demand is actually down by four percent from 2007. Furthermore, on the same day that President Bush made his energy assessment, Marketwatch quoted ExxonMobil's Chief Executive Officer Rex Tillerson as saying, "The record run in oil prices is related more to speculation and a weakening dollar than supply and demand in the market."
Speeches from other oil executives like Valero's Bill Klesse also suggest President Bush and Washington insiders are out of touch with energy reality.
To read the full BusinessWeek column and for more information, click here.