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 ...
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?
The laws of supply and demand do not apply to Obama energy policy. He is after all a prince.
ap? sorry so called “ap facts” can’t violate God’s laws of economics.
I don’t understand where you get the idea that we are shipping all our oil and gas to China or wherever.
The actual figures are in the first couple paragraphs of this article: http://www.freerepublic.com/focus/f-news/2862027/posts
More are easily available at the DoE/EIA links you can start with there. We recently became a net natural gas exporter, but that is only due to this fracking revolution, and we now have an oversupply of natural gas, which has resulted in low nat.gas prices. This is not the same product as Oil or Gasoline.
15 Trillion Federal government paychecks and pensions are DRILLING deep into the wallets and savings accounts of productive U.S. citizens.
And this drilling is keeping the prices of essentials, food, gas, commodities, sky high.
They can’t wait to drill all the way with NO LIMITS Mandate-Arbeitsziehungslager Federal Labor Camp, the entire U.S. territory.
Just imagine how expensive gas would have been if we hadn't been drilling as much as we could, where we can!
It may have been done to deliberately distort his family names and impede searches
So that is why I am calling him Sutoro and I am sticking to it
Now back to our regular programming
I believe his proper clown name is B Wacky Insane0
supply and demand can clearly be see in natural gas prices
LOL.... we cannot argue with a fool who is telling us that 1+1=3. That is beyond pathetic.
I am sure this idiot did not even bother to look at these charts and facts and even if he did he would have lied anyway...
They'll figure out some way to demonize you for bringing up the question.
How about EPA blending rules? A recent study estimates that if they’d just pick one gas prices would fall $0.43.
Nope, that's not how it works.
You are missing a the key element to this corporate fascist loop.
The reason the regs exist is that the greenies sue to get them. The greenies are sponsored by tax-exempt "charitable" foundations belonging to... the major stockholders of oil and gas companies, also the biggest sponsors of AGW racketeering.
Yup, there’s that as well. What a tangled web they weave.
Yes. This is the point that needs to be repeated over and over.
The price of gas was $1.61/gallon in January of 2009 when 0bama took office!
Even if it only cut prices by about 10% (which IMO is BS), the greater benefit to increased drilling is.. we`re usin~ OUR resources, not buying them from Saudi royal families and other rich muslims who regard America as only a necessary evil.
It`s not ALL about price. Even if domestic oil INCREASED prices, it`s still far more acceptable than feeding the monster that is islam.
More drilling and more refineries certainly couldn’t hurt.
I hate liberals, progressives, leftist, socialists, communists. Hate em all.
For many years, we have been expanding and upgrading our existing refineries.
We now produced more refined product than the US consumes.
Because of this, we now bring in a bit of surplus crude oil, refine it, and export the refined surplus. It keeps more jobs here, helps the trade balance, and gives us a cushion if we have unexpected shutdowns.
biggest cause of recent increases in demand for natural gas is the amount that it takes to boil ethanol out of corn mash
Industrial use of natural gas has gone down slightly, not up.
We are are a next exporter of refined product, what comes out of our refineries.
But our import of crude oil to run in our refineries is quite high. It has come down a little, with our falling demand and slight increase in domestic oil production.
Taken together, we still import a lot of petroleum.
The author compares the natural gas market to that for gasoline by which to support the bogus contention that increasing drilling does not reduce prices. Hence, it was natural to ask if in fact there had been an increase in demand and then to seek a cause.
Natural gas consumption as a feedstock for gasoline has increased in that producing corn ethanol requires fertilizer and heating for distillation, both of which use a lot of gas, although the former is probably a substitution for some other agricultural product. It was rational to ask if the relatively recent and Federally mandated addition of ethanol to gasoline increased natural gas demand.
Thanks for the data. It shows a baseline increase of 10% over the last year, which is more recent than the addition of high levels of ethanol in gasoline nor is it enough to explain the prices that we are seeing as a demand pull.
There are many variables in the equation of the price of crude oil. One of those variables is: Oil is tied to the US dollar. The more money we print, the less valuable the dollar, the higher the price for oil.
Possibly because we have a shortage of refineries.
We do not have a shortage of refineries.
The expansions and upgrades of the existing refineries, combined with our falling demand, has left us with a surplus of refining capacity.
The info I have is that refineries cannot make a profit
under the present situation. Also, several refineries have shut down for repairs.
Profit margins are tight at these high crude prices. Some less efficient refineries serving area with significant demand decrease have shutdown.
This is a fairly normal time for scheduled work with short term shutdowns.
But even running refineries at ~83% capacity on average (some of that 17% is those shutdown), we are still exceeding the demand for domestic refined product.
I didn’t think inflation was of any concern today? According the our guvmnt it’s at a manageable 1.5%. Don’t worry about the price of: Gas, food, clothes, wood, water, eletricity, etc. They have a formula that proves it.