I think you are correct. If the price goes to low.... no drilling.
I would love to see congress choose one of the 2 options:
1. Cheap Fuel
2. Independence from foreign oil sources.
Without an objective there can be no solution. If we chase both, we will likely get neither.
Personally I would choose complete oil independence. Once we get production up to the proper levels, the prices will drop. We will also untie our self from price fluctuations due to tin horn dictators big mouths.
How? Nationalize the oil industry? Correct me if I am wrong, but if we do in fact permit more domestic oil exploration/recovery, that oil will be the property of the private oil companies, not the gubmint, right?
And what will happen to that oil? It won't be set aside as "American only" oil, selling at a different price than the world market, will it? It's my impression that new oil would be thrown in with the rest of the world market. This would likely result in lower prices, which is good.
But how does that lead to oil independence? My impression is that no such thing is possible. So please explain to me how "oil independence" is supposed to work. I'd truly love to know.