It’s no secret that many members of the political class have no idea how markets work, let alone the factors that influence and determine prices.

Massachusetts Sen. Elizabeth warren demonstrated this behavior in a letter she sent to oil and gas producers, blaming their “greed” for high gas prices.

Usually, producers let such political theater slide. But not this time. EQT CEO Toby Rice went to great pains, and in great detail, to show Warren how and where she was wrong. As the Wall Street Journal writes:

Natural gas prices have increased this year because supply hasn’t kept up with demand. The Democratic tax-and-regulatory onslaught on fossil fuels and pressure from progressive investors have persuaded some producers to restrain output and return profits to shareholders rather than invest in expanding supply.

The Biden Administration this week has been pointing to a recent dip in energy prices triggered by the Omicron Covid variant and a milder winter weather forecast. Democrats want to take credit for falling prices that have nothing to do with their policies while ducking political responsibility for price increases that their policies lead to. Credit Mr. Rice and EQT for setting the record straight.

Not that Sen. Warren will appreciate, or even acknowledge, Mr. Rice’s response. That’s not how official Washington rolls. But for those of us who appreciate that markets and prices are more complex than the cheap strawmen politicians prefer, Mr. Rice’s letter is both refreshing and instructive.