Skip to comments.FACT CHECK: More US drilling didn't drop gas price
Posted on 03/21/2012 2:29:23 PM PDT by DaculaEdited on 03/21/2012 4:01:12 PM PDT by Admin Moderator. [history]
WASHINGTON — It's the political cure-all for high gas prices: Drill here, drill now. But more U.S. drilling has not changed how deeply the gas pump drills into your wallet, math and history show.
A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.
(Excerpt) Read more at ajc.com ...
AP = BS
The fact is Obama has hindered all forms of carbon based energy generating production. The green schemes are not going to be major substitutes and government is bad at picking winners.
“.... Suppose we could drill all we want ..... but until we create more refineries ... the output will remain stagnant.”
And with Obama’s EPA sitting in the offices of the PRIVATE oil refineries (never happened before) waiting for them to do something ‘wrong’ (in their opinion) so they can SHUT THEM DOWN. We have a refinery here and they are all over the place like a bunch of roaches in the dark!
EPA’s Planned Pollution Controls on Power Plants and Refineries Called ‘Costly and Unworkable’
In an effort to reduce greenhouse gas emissions in the United States, the Environmental Protection Agency (EPA) announced that it will decide which pollution-reduction technologies work best for power plants and refineries. It plans to issue regulations over the next two years requiring power plants and refineries to implement those pollution-reduction technologies.
The EPA will issue regulations for fossil fuel power plants in July 2011 and final regulations are expected to be set by May 2012. For refineries, the regulations will start in December 2011 and then final regulations are expected to be in place by November 2012.
The standards for reducing emissions will apply to new and existing power plants and refineries that, according to McCarthy, account for 40 percent of greenhouse gas emissions in the United States. These man-made gaseous emissions allegedly contribute to global warming.
Gina McCarthy - photo above
We set the standards and the industries themselves figure out the most cost-effective way to achieve those standards, she said.
We have a lot of experience working with utilities as well as refineries, understanding the technologies that might be available to them for reductions, said McCarthy.
In a statement on Dec. 23, the American Petroleum Institute, which represents more than 450 oil and natural gas companies, said, EPA is cramming too much in too short of a time. The administrations focus should be job creation and economic recovery, not unnecessary and burdensome regulations that will threaten jobs and create a drag on business efforts to invest, expand and put people back to work.”
API hopes that EPA will reconsider its costly and unworkable greenhouse gas regulations,” said the institute. “The Clean Air Act was never intended to be used to regulate stationary source greenhouse gas emissions, and elected members of Congress should chart U.S. climate change policy.
Once again these morons completely miss the point. We need to decrease our dependence on radical Islamists. Gas prices will eventually come down and we will control them, not the Mideast.
The critical point to consider about producing more oil in the USA, even if it is at global prices, is that the profits stay in the USA. And, it produces more jobs in the USA. Neither of which are important to 0dumbo.
Also, a lot of the current price spike is tied to the Fed dumping Obama bucks into the economy:
“One particular segment where Fed policy is directly resulting in skyrocketing prices is at the gas pump. From the first day that the Fed began engaging in quantitative easing back in early 2008, the impact on gas prices has been profound.
Gasoline prices have followed a predictable trend since the first days of Fed stimulus. During QE1, gasoline prices skyrocketed by +118%. Once QE1 ended in April 2010, gasoline prices immediately dropped by -27% in a matter of months, and this occurred during what is typically the strong summer driving season. Once QE2 was delivered to the market in August 2010, gasoline prices jumped another 92% by the end of this stimulus program in June 2011. Once again, the moment QE2 ended, gasoline prices retreated another -28% in a matter of months. Finally, since the latest Fed stimulus program along with the European Central Banks own LTRO program, weve seen gasoline prices skyrocket another +30%. What is even more irksome is that much of this rise in gasoline prices has occurred during a time when gasoline consumption has been falling. Have the laws of supply and demand been repealed? No, theyve just been severely distorted by policy action.”
Good graph of this at the site:
oh yeah... a real brain trust that is, and unbiased ed to boot
Drilling for oil and refining gasoline obviously needs lagging factors before someone can judge whether or not a correlation exists. In addition, correlation is neither cause, nor proof of cause. Correlation is statistical. Cause is deterministic.
There are several factors that influence prices. One is demand. When your economy collapses, you have fewer people commuting and fewer trucks hauling goods. Prices tend to go down.
When the economy picks up, then demand picks up. The elephant in the room is Asia; if demand picks up there, it doesn’t matter how little demand there is here, supplies are going to tighten.
So don’t look for a direct link between US drilling and US prices.
Still, if prices are high, then what oil you do drill brings more money into the US economy, and more money into the US treasury. Thats usually considered a good thing. That, plus, if you drill in the US then Americans go back to work. They buy cars and houses, and that puts other Americans back to work.
High oil prices are not automatically a bad thing, if its the result of an economy that is humming and the money is flowing to Americans. And low prices aren’t automatically good, if its the result of an economic meltdown and high unemployment.
Everything you learned about supply/demand/price curves is wrong.
AP......the “Global Warming Press”
Right. As Thomas Sowell explains so well in his book “Basic Economics: A Citizen’s Guide to The Economy”, how much oil is available is related to the cost of getting it. The cost of getting it remains relatively stable and more predictable than the price of oil at any time, so when the cost of oil goes up, it makes exploration and extraction more feasible and attractive.
B U M P
This is also from the same people who didn’t think on their own to overlap the atmospheric CO2 level graph with the corresponding temperature graph over time, and simply accepted what Al Gore said in his lectures.
Gore was dishonestly smart enough NOT to overlap them in his lectures, lest some nine year old kid raises her hand and says “Mr. Gore, it looks like the temperature starts climbing before the CO2 levels start going up...”
Some people give him credit for trying to suppress the oceanic outgassing effects of rising temperatures leading to higher atmospheric CO2 levels when it gets warmer.
I think he was too ignorant to see it up front.
Just a pet peeve of mine but you guys who want to use Bozo's step father's name for him please learn how to spell it, it is NOT sutoro or soeetero or any of the other idiotic variations I have seen on FR it is Soetoro. It is easy to look up on the internet and spell correctly, to not do so makes us on FR look like a bunch of illiterate fools. I call him Bozo, easy to spell and says how I feel about him, he is a clown who shouldn't be in the office of President. However, if you are going to use one of the proper names he has used, either Obama, Dunham or Soetoro please spell it correctly. If he has any other aliases out there I am unaware of them.
I couldn't agree more.
My Texas A&M graduated RN sister-in-law axed me point blank, in all seriousness, what keeps Galveston Island from floating away. And some people wonder how Obama got elected.
Right no, the biggest factor in gas prices is “fear of the unknown”. When a Republican wins in Nov. the price of gas will drop $0.75 in a week.
“their regs close refineries and destroy infrastructure its easy to make their meme fact.”
I heard that 3 more refineries closed in PA, and another 2 in NJ? That certainly doesn’t help.
Here’s how it works.
Greenies raise hell over drilling permits/air quality concerns. Media goes wild with coverage on Global warming.
While you look at that, the Dems legislate refineries, pipelines (little ones and big ones alike) into extinction.
Laws about transport are made to put max obstruction on oil delivery (ECO concerns etc.)
Refineries, unable to profitably run due to the above, close.
Dems get on tv and tell the world that refineries are at full capacity so additional drilling will not increase useable supply/decrease prices since we cannot process it all (that we produce now)
Stupid people never wonder why the law of supply and demand has been so egregiously violated and prices are what they are. Then vote Dem again for the children.
Media is Marxist.
Am I right thackney?
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