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FACT CHECK: More US drilling didn't drop gas price
The Associated Press ^ | 3:06 p.m. Wednesday, March 21, 2012 | SETH BORENSTEIN

Posted on 03/21/2012 2:29:23 PM PDT by Dacula

Edited 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 ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: ap; democratmedia; democrats; dnc; dnctalkingpoints; drill; drillheredrillnow; enemedia; energy; fraud; gasprices; liberalmedia; lyingmedia; mediabias; msm; obamedia; oil
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To: Curmudgeon2K

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.


51 posted on 03/21/2012 4:20:01 PM PDT by rlmorel (A knife in the chest from a unapologetic liberal is preferable to a knife in the back from a RINO.)
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To: rlmorel

B U M P


52 posted on 03/21/2012 4:28:35 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: Curmudgeon2K

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.


53 posted on 03/21/2012 4:28:54 PM PDT by rlmorel (A knife in the chest from a unapologetic liberal is preferable to a knife in the back from a RINO.)
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To: silverleaf
Jan 2009: hail to president sutoro

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.

54 posted on 03/21/2012 4:29:23 PM PDT by calex59
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To: APatientMan
We’re too f’n stupid to deserve this country.

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.

WE'RE DOOMED!

55 posted on 03/21/2012 4:35:35 PM PDT by houeto (Mitt Romney - A Whiter Shade of FAIL)
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To: Dacula

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.


56 posted on 03/21/2012 4:46:50 PM PDT by chooseascreennamepat (The response to 1984 is 1776.)
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To: Norm Lenhart

“their regs close refineries and destroy infrastructure it’s 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.


57 posted on 03/21/2012 4:52:23 PM PDT by chooseascreennamepat (The response to 1984 is 1776.)
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To: chooseascreennamepat

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.


58 posted on 03/21/2012 5:05:57 PM PDT by Norm Lenhart
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To: stephenjohnbanker
damn straight!
59 posted on 03/21/2012 5:10:48 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Dacula; thackney
My guess as to the biggest cause of recent increases in demand for natural gas is the amount that it takes to boil ethanol out of corn mash.

Am I right thackney?

60 posted on 03/21/2012 5:13:54 PM PDT by Carry_Okie (The RNC would prefer Obama to a conservative nominee.)
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To: Dacula

The laws of supply and demand do not apply to Obama energy policy. He is after all a prince.


61 posted on 03/21/2012 5:18:18 PM PDT by jwalsh07
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To: Dacula

ap? sorry so called “ap facts” can’t violate God’s laws of economics.


62 posted on 03/21/2012 5:28:48 PM PDT by dadfly
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To: SECURE AMERICA

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.


63 posted on 03/21/2012 5:39:24 PM PDT by AFPhys ((Praying for our troops, our citizens, that the Bible and Freedom become basis of the US law again))
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To: Dacula

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.


64 posted on 03/21/2012 5:50:50 PM PDT by Varsity Flight (Phony-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: Dacula
To take a page from the Liberal playbook:

Just imagine how expensive gas would have been if we hadn't been drilling as much as we could, where we can!

65 posted on 03/21/2012 5:55:51 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: calex59
Sutoro is one of his aliases and one of the spellings use on some documents citing his family so stow your peevishness

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

66 posted on 03/21/2012 6:23:31 PM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: calex59
>"If he has any other aliases out there I am unaware of them. "

I believe his proper clown name is B Wacky Insane0

67 posted on 03/21/2012 6:24:53 PM PDT by rawcatslyentist (Mohammedan law every woman must belong to a man will delay the end of slavery until Islam has ceased)
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To: Dacula

supply and demand can clearly be see in natural gas prices


68 posted on 03/21/2012 6:26:40 PM PDT by woofie (It takes three villages and a forest of woodland creatures to raise a child in Obamaville)
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To: Dacula
And no where in the article did any of the dumbass professionals take into account the fact that a) during this time frame the cost of imported oil was cheaper to buy than the cost here to drill and transport and b) the cost of gas has risen becuase the taxes and fees associated with refining a multitudinous variety of blends is figured into the cost of gas. ALL of this crap is the government, the EPA, and the socialist/Marxists refugees in the radical environmental movement ( a majority of which are paid for by our tax dollars).
If I was head of the 450 member API, I would call on the membership to cease all operations for 60 days. That should pretty much cause enough hardship so that the day before the election, you can announce more 60 day shutdowns if the current administration is returned to power. Problem is the API is greedy bunch of mothers who would rather screw me and you (to hell with the country) than screwing this would be king and save the country.
69 posted on 03/21/2012 6:28:08 PM PDT by cashless (Unlike Obama and his supporters, I'd rather be a TEA BAGGER than a TEA BAGGEE.)
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To: Dacula

LOL.... we cannot argue with a fool who is telling us that 1+1=3. That is beyond pathetic.


70 posted on 03/21/2012 6:30:58 PM PDT by jveritas (God bless our brave troops)
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To: Dacula
And no where in the article did any of the dumbass professionals take into account the fact that a) during this time frame the cost of imported oil was cheaper to buy than the cost here to drill and transport and b) the cost of gas has risen becuase the taxes and fees associated with refining a multitudinous variety of blends is figured into the cost of gas. ALL of this crap is the government, the EPA, and the socialist/Marxists refugees in the radical environmental movement ( a majority of which are paid for by our tax dollars).
If I was head of the 450 member API, I would call on the membership to cease all operations for 60 days. That should pretty much cause enough hardship so that the day before the election, you can announce more 60 day shutdowns if the current administration is returned to power. Problem is the API is greedy bunch of mothers who would rather screw me and you (to hell with the country) than screwing this would be king and save the country.
71 posted on 03/21/2012 6:31:54 PM PDT by cashless (Unlike Obama and his supporters, I'd rather be a TEA BAGGER than a TEA BAGGEE.)
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To: kcvl

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...


72 posted on 03/21/2012 6:32:23 PM PDT by jveritas (God bless our brave troops)
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To: SomeCallMeTim
What’s their explanation for the drop in Natural Gas prices in the US?

They'll figure out some way to demonize you for bringing up the question.

73 posted on 03/21/2012 6:40:56 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Dacula
The drilling isn't the main issue.

The problem is the regulations being cooked up by Obama's EPA

74 posted on 03/21/2012 7:33:44 PM PDT by Tribune7 (GAS WAS $1.85 per gallon on the day Obama was Inaugurated! - - freeper Gaffer)
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To: Dacula

How about EPA blending rules? A recent study estimates that if they’d just pick one gas prices would fall $0.43.


75 posted on 03/21/2012 8:16:02 PM PDT by 1010RD (First, Do No Harm)
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To: Norm Lenhart
Here’s how it works...

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.

76 posted on 03/21/2012 9:24:10 PM PDT by Carry_Okie (The RNC would prefer Obama to a conservative nominee.)
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To: Carry_Okie

Yup, there’s that as well. What a tangled web they weave.


77 posted on 03/21/2012 10:41:22 PM PDT by Norm Lenhart
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To: epithermal
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.

Yes. This is the point that needs to be repeated over and over.

78 posted on 03/21/2012 11:39:09 PM PDT by NurdlyPeon (I guess Newt is the best choice of the lot right now.)
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To: DJ Frisat

The price of gas was $1.61/gallon in January of 2009 when 0bama took office!


79 posted on 03/21/2012 11:48:24 PM PDT by Brown Deer (Pray for 0bama. Psalm 109:8)
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To: calex59

http://en.wikipedia.org/wiki/Ann_Dunham


80 posted on 03/22/2012 1:31:54 AM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: rawcatslyentist

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.


81 posted on 03/22/2012 3:13:28 AM PDT by ScottinVA (A single drop of American blood for muslims is one drop too many!)
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To: Dacula

More drilling and more refineries certainly couldn’t hurt.


82 posted on 03/22/2012 3:55:06 AM PDT by RWB Patriot ("My ability is a value that must be purchased and I don't recognize anyone's need as a claim on me.")
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To: Dacula
This article makes me crazy. Keep an eye on these bylines...fascinating how these leftist jews in this country are in love with hussein.

I hate liberals, progressives, leftist, socialists, communists. Hate em all.

83 posted on 03/22/2012 4:01:51 AM PDT by Post5203 (Newter 0bama...The real Axis of Evil...Washington, New York City and Hollywood.)
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To: R_Kangel
but until we create more refineries ... the output will remain stagnant.

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.


84 posted on 03/22/2012 4:15:41 AM PDT by thackney (life is fragile, handle with prayer)
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To: Carry_Okie
The article is talking about gasoline, not natural gas.

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.


85 posted on 03/22/2012 4:29:58 AM PDT by thackney (life is fragile, handle with prayer)
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To: SECURE AMERICA
We may have drilled more but we are now shipping more out then we ship in?

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.


86 posted on 03/22/2012 4:50:50 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
The article is talking about gasoline, not natural gas.

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.

87 posted on 03/22/2012 6:45:59 AM PDT by Carry_Okie (The RNC would prefer Obama to a conservative nominee.)
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To: Dacula

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.


88 posted on 03/22/2012 8:29:37 AM PDT by avacado
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To: Dacula

Possibly because we have a shortage of refineries.


89 posted on 03/22/2012 9:03:03 AM PDT by upcountryhorseman (An old fashioned conservative)
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To: upcountryhorseman

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.


90 posted on 03/22/2012 9:21:31 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

The info I have is that refineries cannot make a profit
under the present situation. Also, several refineries have shut down for repairs.


91 posted on 03/22/2012 1:10:05 PM PDT by upcountryhorseman (An old fashioned conservative)
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To: upcountryhorseman

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.


92 posted on 03/22/2012 1:16:06 PM PDT by thackney (life is fragile, handle with prayer)
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To: DJ Frisat

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.

(Sarc)


93 posted on 03/22/2012 1:20:40 PM PDT by Tenacious 1 (With regards to the GOP: I am prodisestablishmentarianistic!)
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