Posted on 04/25/2011 9:48:43 AM PDT by tobyhill
Every time gas prices reach record highs the call goes out for more oil drilling. This year it's no different.
"The Gulf is ready to get back to work to help create jobs and lower gasoline prices," Washington Republican Doc Hastings, head of the House Natural Resources Committee and a big proponent of more drilling, said last week.
The problem is this: While increased oil and gas drilling in the United States may create good-paying jobs, reduce reliance on foreign oil and lower the trade deficit, it will have hardly any impact on gas and oil prices.
That's because the amount of extra oil that could be produced from more drilling in this country is tiny compared to what the world consumes.
Plus, any extra oil the country did produce would likely be quickly offset by a cut in OPEC production.
(Excerpt) Read more at money.cnn.com ...
It's obvious that expanded drilling will lower the prices.
BINGO!
Well of course it won’t work — UNLESS WE TRY IT. Liberals are just retarded I think.
Had we tried drill baby drill 10,15,20 years ago when many of us started pushing it, we’d have the benefits today. Supply and demand is what it is, and it is a law of economics period.
I wish FR had a “Like” button. I would bump your response up.
You are exactly correct.
Another in the endless stream of articles by the corrupt MSM to run interference for Obama on gas prices.
In 2008 it was ALL Bush’s fault. It was because of Iraq and Afganistan. It was because of Haliburton. Bush/Cheney were personally rewarding their oil buddies with high gas prices.
Now?
Now it all beyond Obama’s control. There’s nothing he can do. It’s nothing he has done. He feels really bad and his green energy hokum will help, but it’s not his fault.
LLS
In other news, CNN says the World is flat.
One of the most common arguments from Liberals and even some conservatives, against new drilling in Alaska is ,that it would take years to get any of it on the market. That is the same thing they said about the Alaska pipeline. Opponents said it would take 15 Years to build. It took 2. And it caused a huge spike in new Alaska jobs.
Hard to understand why all of these people are protection something that will hurt their own kids and families.
The Alaska Pipeline they said, would take 15 years to build. It took 2.
And nearly everyone in Alaska knew somebody that had a job because of it.
Maybe the Democrats noticed this fact and are planning to use it for 2012 to make Obama look like the savior of the economy.
Oil prices are speculative in nature. Speculators would see this announcement as a sign that the USA is getting serious about energy production - something this country has not done since before Jimmy Carter. We are floating on natural resources. Every speculator knows it. An announcement such as above would instantly color their thinking, & give OPEC something serious to think about, too.
Recall that the $145/bbl oil price in 2008 was the result of speculation. We need to convince the speculators that oil will be plentiful, & therefore cheap, in the future. Only the USA could make this happen, & soon.
It may not lower today's prices, but it could prevent much higher prices in the near future.
The above argument applies as well to NG & coal.
I realize Obama is not likely to EVER do this. But it is what needs to be done, immediately. Palin would do it. So too, Trump, I believe. I'm not so sure about the rest of the pack.
How do people this stupid get to be writers ?????
“When Bush lifted the moratorium in 2008, prices dropped from $147 a barrel to $33 a barrel in 6 months...”
And could you please present the cause and effect of Bush lifting the moratorium in 2008 to the lowering of oil prices?
Were there any other factors in the world economy in the fall of 2008 which you believe may have also contributed to the crashing of oil prices?
How would you explain that fact that there were more than 2000 rigs drilling in the USA when oil was at $147 and less than 900 when oil prices settled at $33?
Do you believe American oil companies should expand oil exploration in the US even when oil in priced at below $70.00 a barrel?
We are being destroyed by overpaid, self serving idiots in both parties.
CNNMoney writer finds the concept of supply and demand odd.
I don't care how many rigs there were because obviously the amounts of recovered oil and the possibility of future supply increases satisfied the market. It's when you believe supply increases won't be there, regardless of the reason why such belief, prices will increase.
Maybe market investors don't believe Obama will actually allow for increased supply?
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