Who Really Wants Cheap Oil?

Democrats or Republicans?

The Republicans have been accused both of pandering to oil interests by allowing prices to rise, and of seeking cheap oil via miscellaneous wars in the Middle East. These statements obviously contradict one another. You can, I suppose, present the evidence that oil prices DID spike during the Bush administration and that cheap, favorable oil leases were granted to the majors; however, now that oil prices are lower (below $60, at least), Bush is proposing a refill of the Strategic Petroleum Reserve. Is this to create additional demand in the near term and bolster prices or to offer a safety valve in case of additional price increases? Who knows.

On the Democratic side, you hear calls to either impose a profits tax on large oil companies or to impose a substantial tax on gasoline purchases, which would be used to subsidize various companies investigating alternative energy technologies. The former would potentially decrease supply and raise prices, while the latter artifically raises prices by tax with the hope of decreasing demand.

I don't know who really wants "cheap" oil, at least not for the consumer -- the answer to that is, probably, none of the politicians. However, both sides offer corporate welfare in various forms. Pick your investment accordingly.