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 ...
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.
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!!
“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
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.
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.
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 Carters 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 wasnt 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.
Thanks in advance
.... Suppose we could drill all we want ..... but until we create more refineries ... the output will remain stagnant.
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.
January 2000 I bought gas for $0.859 per gallon.
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.
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
I hope you pass this information along to the bonehead who wrote the AP story.
It’s not drilling that produces oil, it’s pumping the wells that successful wells drilling was able to find.
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...
Sold!!! We'll Take It!!!!
Drill Baby Drill!!!
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.