Passing Gas at the Washington Post
05/04/2011 by Peter HartCalling for more drilling for domestic oil to do something about rising gas prices makes little sense. This should be a simple matter of economics or math--there's not enough oil to recover from U.S. territory to affect global supply, and since oil is a commodity traded on a global market, only an increase in the global supply can affect the price.
Nonetheless, one major political party in this country holds out more drilling as the solution to high prices, and thus that point of view is treated with respect. Take the Washington Post piece today (5/4/11) by Juliet Eilperin, headlined "Soaring Prices Alter Energy Debate a Year After Gulf Spill: A Drive for More Drilling."
The article manages to convey--in passing--that this policy solution wouldn't really work, but nonetheless treats it as if it were a respectable policy option:
Just one year after the explosion of the Deepwater Horizon killed 11 and triggered a massive oil spill, there's little appetite among legislators for new safety regulations. Instead, a single concern is prompting a drive for more drilling: $4-a-gallon gas.
Increased drilling won’t bring down the immediate cost U.S. consumers pay at the pump, but soaring fuel prices have transformed the U.S. energy debate, motivating the House this week to take up at least one of three bills that would ease the way for more energy exploration off both coasts and in the Gulf of Mexico.
So more drilling won't help in an "immediate" way, but as a response to high prices Congress is considering bills to encourage more drilling. The piece does quote critics who point out that increased drilling isn't going to matter, immediately or otherwise--the Post attributes this analysis to "Democrats and environmentalists." As Dean Baker put it, "Tell the Washington Post that All Non-Flat Earthers Believe that Oil Prices Are Determined in a Global Market."
Tags: Juliet Eilperin, oil
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May 4th, 2011 at 6:00 pm
[...] Passing Gas at the Washington Post [...]
May 4th, 2011 at 9:42 pm
To control the oil companies is impossible – The problem is not lack of gas but rather the lack of cash to buy the gas! Washington should add a minimum wage escalator that is tied to gasoline pump prices. This would help the most disadvantaged that are forced to spend a large proportion of meager wages to oil companies while making the gains to business less significant!
May 5th, 2011 at 1:17 pm
I take issue with one point: "only an increase in the global supply can affect the price."
Not so. Reduction in demand can also affect the price. This problem has been around since 1971 and since Reagan the only solution has been to increase supply. As he said, "the solution to America's energy problem is not conservation but production."
The result? Oil shale areas despoiled. Global conflict in which we must be a partner regardless of our strategic interest. Consolidating with dictators that soil us by contact. Unnecessary wars. Complete energy dependence.
We've given the production side a chance and it's been one long epic fail after another.
Time to let the other side have a chance.
May 5th, 2011 at 3:46 pm
Yes, lowering global demand can also lower the price of oil.
May 5th, 2011 at 6:43 pm
[...] Juliet Eilperin, oil Posted in Economy, Environment, Washington Post | Permalink | Trackback | [...]
May 6th, 2011 at 11:57 am
[...] again: Domestic drilling will do next to nothing to affect gas prices. (Mostly) Republican politicians [...]
May 7th, 2011 at 11:30 pm
For goodness sake – This argument is Old- The only way to solve America's dependency on big oil is to change the shopping habits with a backing of efficiency and free sources of energy- !
May 9th, 2011 at 7:53 am
Bullshit.We have enough gas oil and coal for all our needs for many lifetimes into the future.We live on an ocean of energy.More being found every day.All blocked and shut down.All by one party
May 9th, 2011 at 8:43 pm
We are walking on an ocean of energy.All blocked by one party