FACT CHECK: More US drilling didn't drop gas price

The Associated Press ^ | 3:06 p.m. Wednesday, March 21, 2012 | SETH BORENSTEIN

[Dacula]

WASHINGTON

[silverleaf]

I remember the July of 2008 when oil reached $147 a barrel and gas reached $4 a gallon

Bush announced he would “drill baby drill” and the price of oil dropped immediately

By August it was $120 a barrel

By September below $100 a barrel

October $70 a barrel and uS gas prices @ $1.99 a gallon

November gas prices @ $1.72 a gallon

Dec oil price collapse below $40 a barrel, gas prices about $1.60 a gallon

Jan 2009: hail to president sutoro

Those were the days, my friend. Dhimmis in power ensured they would surely end.

[ExCTCitizen]

But Obama, who has seen gas prices go up 73 percent since he took office, was singing a different tune last week in his weekly radio address: "The truth is: The price of gas depends on a lot of factors that are often beyond our control. Unrest in the Middle East can tighten global oil supply. Growing nations like China or India adding cars to the road increases demand. But one thing we should control is fraud and manipulation that can cause prices to spike even further."

The Moron in Chief thanks the AP for this 'FACT Check'. We could Drill here and keep it for our (and Canada's use). We don't need to export it to China...China is not a friend!!

[funfan]

“Yet it was during the last few months of Bush’s term in 2008 that gas prices hit their highest: $4.27 when adjusted for inflation.” this last line from the article is BS and why are they adjusting it for inflation so they can make the price look higher at the end of bush’s term.

In June of 2008 the price for regular gas was high
around $4.079 per gallon but then it started going down and 7/28 it was $3.955 per gallon 8/25 it was $3.685 and 9/22 was $3.718 10/ 27 was $2.656, 11/24 it was $1.892 and 12/22/2008 it was $1.653. It has pretty much gone up since 2009 when Obama took office. I guess if we add inflation to Obamas prices it would be 1 trilion dollars per gallon

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_DPG&f=W

[kcvl]

Since February 2009, U.S. PRIVATE oil production has increased 15 percent when "seasonally adjusted"

[jimmango]

Wow, I almost believed you until you threw in "0bama is a competent President" /s

[KarlInOhio]

but we are now shipping more out then we ship in?

Who has said we ship more oil out? I know that we ship some gasoline out, but it is a very small amount compared to the amount of oil shipped in. During the period before the 2008 crash we were even shipping in gasoline because our refineries couldn't produce all we needed, but since then our demand has dropped below the refineries' production limits.

[dila813]

This is genius, even if we stopped drilling for oil globally the oil wouldn’t go up. It is great to have confirmation that oil is the one commodity that doesn’t obey the laws of supply and demand.

[kcvl]

Question: What do President Barack Obama and ex-President Jimmy Carter have in common?

Answer: Both presided over strong increases in domestic oil production that were a result of decisions made before they took office.

The reason oil production rose under Jimmy Carter was because in 1973 President Nixon pushed through the Trans-Alaska Pipeline Authorization Act which cleared away legal challenges from environmentalists seeking to stop construction of the Trans-Alaska Pipeline. That pipeline started production in 1977, during President Carter’s first year in office, and as a result oil production rose for the first 2 years of his term.

Likewise, the reason that oil production has risen under President Obama is due to events that happened years earlier. In this case, it wasn’t some grand initiative that President Bush passed, rather it was years of steadily increasing oil prices that caused oil companies to approve a number of new projects that had marginal economics at lower oil prices. But these projects take some years to build, and as in the case of the Alaska Pipeline, decisions that were made 4-6 years earlier benefited President Obama with increased domestic oil production.

http://www.consumerenergyreport.com/2012/01/23/are-president-obamas-policies-causing-a-rise-in-u-s-oil-production/

[tomkat]

** In the interest of further ridiculing the marxist enemy, your graphic has been appropriated by the counterrevolutionary forces **

Thanks in advance  

[R_Kangel]

.... Suppose we could drill all we want ..... but until we create more refineries ... the output will remain stagnant.

[NELSON111]

Nothing happens in a vacuum. Part of that drop was also the economy beginning to fall off a cliff. It wasn't just drilling. It was the drop in demand.

As much as I want this to be Obama's fault...a lot of it isn't. Freepers are funny when it comes to gas prices. They fail to realize the same thing that drove oil prices up under Bush are driving it up now: SPECULATORS.

We don't have a supply problem. There is a lot of surplus out there.

[mountainlion]

January 2000 I bought gas for $0.859 per gallon.

[allmendream]

It is just so far out in LEFT field that I had to say it.

Even if more U.S. drilling did not reduce gas prices as a matter of history - the principle behind it is as solid as anything gets.

Water IS wet. Summer IS warmer than winter. Gravity IS an attractive force. And an increased supply of something IS going to reduce the price.

It may not have brought down the actual price because of an ever increasing DEMAND - but an increased supply will ALWAYS reduce the price more than if there was NOT an increase in supply.

[silverleaf]

Its called “tribute”, friend

Its what conquered people pay to their new rulers

We pay tribute to China that holds our debt by shipping them our oil and coal, too

Next it will be our wheat, soy, and other food crops .. if not already happening

Obowma didnt kowtow to the president of China by accident, and he didnt hustle the Dalai Lama out the service entrance of the WH by accident either

[kcvl]

[Pining_4_TX]

I hope you pass this information along to the bonehead who wrote the AP story.

[Dixie Yooper]

It’s not drilling that produces oil, it’s pumping the wells that successful wells drilling was able to find.

[silverleaf]

I believe what obowma and geithner and bernanke have given us is not rampant speculation they are “helpless” to confront ... but a weak dollar and a market that can no longer rely on the good faith of the US government that is printing all those debt notes masquerading as money

and obowma bears direct responsibility for that decision and the results, ala $4 + gasoline, in an economy that is at least as weak or worse than when Bush had his final 3 months in office

now this makes me wonder if that economic terrorist attack on the US banking system that occurred in September 2008 had anything to do with Bush’s willingness to play tough with the energy markets and speculators...

[rawcatslyentist]

>"even if the U.S. were to increase its oil production by 50 percent — that is more than drilling in the Arctic, increased public-lands and offshore drilling, and the Canadian pipeline would provide — it would at most cut gas prices by 10 percent. "

Sold!!! We'll Take It!!!!

Drill Baby Drill!!!

[BfloGuy]

A textbook illustration of why economics cannot be explained by or derived from statistics. More supply must cause prices to drop unless other factors intervene. The fact-checker would have us believe that American production is the only factor affecting oil prices.

Now, truth be known, Gingrich has claimed it to be true, too. He's even mentioned a price his drilling program would attain. That's foolishness.

Nonetheless, more American oil will be a good thing.