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By Robert Rapier on Jun 21, 2008 with no responses

Bill O’Reilly is an Idiot

It is simply amazing to watch someone authoritatively pontificate on something that they clearly know nothing about. One of the major reasons we have such an energy problem in the U.S. today is that people are so misinformed. So what does Bill O’Reilly use his airtime to do? Misinform millions of viewers, and demonstrate that he has no grasp of energy issues:

Unbelievable. Of course O’Reilly has also had trouble getting his facts straight in the past. But remember this is the same guy who twice said that the U.S. was behind the Malmédy massacre in WWII.

Footnote: As I indicated in the comments below, the idiocy isn’t the suggestion that speculation plays a role. The idiocy is that O’Reilly doesn’t think there are supply/demand issues here. The fact that O’Reilly thinks “somebody” is hurting us at the gas pump, states that “this is not a supply/demand issue”, and characterizes the issue in terms of the “greedy oil companies” will tell anyone who knows the first thing about the energy business that he doesn’t have a clue. Zip.

And by complaining that refiners regulate capacity, he shows that he doesn’t even grasp supply/demand. All industries regulate capacity. No industry wants to overbuild capacity and cause margins to crash. Look at what’s happening with the ethanol guys right now. Plants are shutting down. And even now, refinery margins have crashed, because demand has softened (and European refiners have been shipping gasoline here to take advantage of high prices). Would O’Reilly suggest that refiners shouldn’trespond by cutting back? Or would he have his refinery, in the face of low margins, plow full speed ahead? Ludicrous.