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OK, assuming that 25% of oil rise is attributed to speculators, and carry that forward to the price of gasoline(I know simple viewpoint). Then speculation contributed $1 to the price of gas. What about the other $1+ ??

Simple economic theory tells us that supply and demand are the largest and most important factors affecting the price of commodities. To imply that an increased supply would have no effect on the prices at the pump is very misleading. It that were true then the price would not be affected by everyone in China and India suddenly buying a car a driving around.

The supply/demand has a definite effect on the speculators as well. Let's assume that the Kochs have massive volumes of oil stored at sea. Then suddenly we open up drilling and pipelines at the same time. Add to that the greatly increased MPG of cars and the lowered number of miles per driver in the USA(lowering demand). If all of those factors hit at once(higher supply & lower demand), the Koch s and other speculators would loose everything. Granted the MPG and miles driven are only for half of the worlds demand, but all of these factors DO effect the price at the pump. And government policies and leanings do effect these things including the speculators. To dismiss one factor (supply), and focus mostly on only one factor (speculation) is crazy.

A very large factor in the price of gasoline is the refinery capacity. There can be all the oil stored that you want, but once you hit a certain level of consumption of gasoline in the USA the price will go up simply because the supply of gasoline is limited by the capacity of our refineries. Our operating capacity in refineries is essentially the same as it was in 1982. In 1982 the USA consumed under 2,400,000 barrels in 2011 we consumed just under 3,200,000. As you can see that is a 33% increase in consumption(demand) with no increased in refining capacity(supply). Any government interested in providing low gasoline costs for its people would provide incentives for the building or overhaul of refineries. Instead our government blocks this type of action indirectly and directly.

A true leader takes control and responsibility for all factors, some within our control and on the others it is how we react to things outside our control. They do not take credit for higher MPG and then blame everything else on other factors.