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Title: Study finds no link between oil drilling, gas prices
Source:
Star-Telegram
URL Source: http://www.star-telegram.com/2012/0 ... finds-no-link-between-oil.html
Published: Mar 22, 2012
Author: Seth Borenstein and Jack Gillum
Post Date: 2012-03-22 11:13:16 by lucysmom
Keywords: None
Views: 3425
Comments: 14
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.
If more domestic oil drilling worked as politicians say, you'd now be paying about $2 a gallon for gasoline. Instead, you're paying the highest prices ever for March.
Political rhetoric about the blame over gas prices and the power to change them -- whether Republican claims now or Democrats' allegations four years ago -- is not supported by cold, hard figures. And that's especially true about oil drilling in the U.S. More oil production in the United States does not mean consistently lower prices at the pump.
Sometimes prices increase as American drilling ramps up. That's what has happened in the past three years. Since February 2009, U.S. oil production has increased 15 percent when seasonally adjusted. Prices in those three years went from $2.07 per gallon to $3.58.
U.S. oil production is back to the same level it was in March 2003, when gas cost $2.10 per gallon when adjusted for inflation. But that's not what prices are now.
That's because oil is a global commodity and U.S. production has only a tiny influence on supply. Factors far beyond the control of a nation or a president dictate the price of gasoline.
When you put the inflation-adjusted price of gas on the same chart as U.S. oil production since 1976, the numbers sometimes go in the same direction, sometimes in opposite directions. If drilling for more oil meant lower prices, the lines on the chart would consistently go in opposite directions. A statistical measure of correlation found no link between the two, and outside statistical experts confirmed those calculations.
"'Drill, baby, drill' has nothing to do with it," said Judith Dwarkin, chief energy economist at ITG investment research. Two other energy economists said the same thing, and experts in the field have been observing that for decades.
Contradicting the GOP
The statistics directly contradict the title of GOP presidential candidate Newt Gingrich's 2008 book Drill Here, Drill Now, Pay Less, as well as the campaign-trail claims from the other Republican presidential candidates.
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Bookmarked for future amusement.
To: mcToejam, rat-boy, drippy, Alzheimer Fred, whitesands, t-bird, loonymom, ming, e-type jackoff, goober56, wreck, cal-CON, rabid dog, dummy DwarF, biff, harrowup the communist, and meguro. You're on the "a waste of human flesh" list. Brian S[ocialist], you're a propagandist moron. ALL of you can piss off.
#2. To: lucysmom (#0)
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
#3. To: Capitalist Eric, lucysmom (#1)
Bookmarked for future amusement.
You got that right....
They conveniently forget to mention that worldwide demand for oil is up and production worldwide is not meeting this demand, hence higher oil prices... In fact worldwide production has been averaging about 80 million barrels per day for over 10 years..... Now if we (the USA) were producing enough oil to overcome this demand then prices worldwide would go down..... But they don't want to believe that, they would rather believe what their "masters" tell them to believe.....
They also seem to conveniently forget that when the offshore drilling moratorium was lifted in 2008 that the price of oil dropped from $120+ a barrel to around $40 a barrel.... Which meant gas here dropped from $4 a gallon to $1.80 a gallon....
But the truth hurts some people so never mind!!!! :^).....
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
#4. To: CZ82 (#3)
They also seem to conveniently forget that when the offshore drilling moratorium was lifted in 2008 that the price of oil dropped from $120+ a barrel to around $40 a barrel.... Which meant gas here dropped from $4 a gallon to $1.80 a gallon....
Well sure, that makes sense. Bush lifts his moratorium on offshore drilling in July and by November those wells are producing enough oil to cause the global price of oil to drop from $120 a barrel to $40 a barrel.
Boy, Obama must be an idiot to not do the same, be a hero, and have a chance at re-election.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
#5. To: lucysmom (#4)
Well sure, that makes sense. Bush lifts his moratorium on offshore drilling in July and by November those wells are producing enough oil to cause the global price of oil to drop from $120 a barrel to $40 a barrel.
Who said they were producing oil????? Just the possibility/probability of there being more oil on the market brought the prices down....
And by the way you're right Obozo is an idiot!!! And he won't drop the moratorium he re-established because he knows his environmental wacko base will desert him.... All he can do is resort to bribes and hope that he will get the votes of the dead again....
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
#6. To: CZ82 (#5)
Just the possibility/probability of there being more oil on the market brought the prices down....
So the possibility of more oil on the market several years down the road is enough to bring prices down in the present, while actual, higher oil production in the present results in higher prices?
Shoot, Obama could just say we're gonna drill like crazy and do nothing.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
#7. To: lucysmom (#6)
Shoot, Obama could just say we're gonna drill like crazy and do nothing.
Good luck with that stategy because people know he is lying thru his teeth.... He hasn't given out any significant amount of leases since he's been in office... And he has stated in the past that he wants higher oil prices and would put the coal miners out of business if he gets his way...... Most people have caught on to his BS, but there still are some out there that believe what he says and would vote for him no matter what..... add in the votes from the dead and he still has a chance, at least in his mind... LOL....
Almost all of the rise in oil production in this country has been by private companies utilizing private land, not federal lands.....
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
#8. To: CZ82 (#7)
Most people have caught on to his BS...
As we see here daily, "real" conservatives will believe what their masters tell them even when the evidence says otherwise. Can't judge all Americans by them.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
#9. To: lucysmom (#8)
As we see here daily, "real" conservatives will believe what their masters tell them even when the evidence says otherwise.
That should read "real" Leftards have to have their masters tell them what to say, do and believe..... You seem to forget that they're the weak minded athiests....
If you want to believe what he says go for it, but all of the statistics I see refutes what he says, even the government generated ones.......
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
#10. To: CZ82 (#9)
...Leftards have to have their masters tell them what to say, do and believe..... You seem to forget that they're the weak minded athiests....
Like I said, obvious to evidence.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
#11. To: CZ82 (#9)
One pic says it all:
And considering that gold has been artificially suppressed in price, the point becomes even more obvious.
Regards,
To: mcToejam, rat-boy, drippy, Alzheimer Fred, whitesands, t-bird, loonymom, ming, e-type jackoff, goober56, wreck, cal-CON, rabid dog, dummy DwarF, biff, harrowup the communist, and meguro. You're on the "a waste of human flesh" list. Brian S[ocialist], you're a propagandist moron. ALL of you can piss off.
#12. To: lucysmom (#0)
Sometimes prices increase as American drilling ramps up. That's what has happened in the past three years. Since February 2009, U.S. oil production has increased 15 percent when seasonally adjusted. Prices in those three years went from $2.07 per gallon to $3.58.
Wow, is the lame stream media in the tank for Odinga and his pointy tailed minions. Wow they are working overtime making sure Odinga's talking points make it into every form of media. Wow they are a bunch of idiots like their master.
Heal me, O Lord, and I shall be healed; Save me, and I shall be saved, For You are my praise. Jeremiah 17:14
#13. To: CZ82 (#3)
They conveniently forget to mention that worldwide demand for oil is up and production worldwide is not meeting this demand, hence higher oil prices... In fact worldwide production has been averaging about 80 million barrels per day for over 10 years.....
The International Energy Agency (IEA) reports that the world oil supply rose by 1.3 million barrels a day in the last three months of 2011 while world demand increased by just over half that during that same time period.Gasoline usage is down in the US by 8%, Europe by 22% and even in China.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
#14. To: lucysmom (#13)
The International Energy Agency (IEA) reports that the world oil supply rose by 1.3 million barrels a day in the last three months of 2011 while world demand increased by just over half that during that same time period.Gasoline usage is down in the US by 8%, Europe by 22% and even in China.
Excerpt from this article---www.newsmax.com/StreetTalk/Global-High- Gasoline-prices/2012/02/21/id/430055
The price of U.S. crude, West Texas Intermediate, is currently hovering around $105 a barrel, while its European counterpart, Brent, is up around $120.
Expect that gap to narrow, and expect gasoline prices to flirt with $5 at the pump soon.
"I think we are headed for $120 or $120 — West Texas. Brent is already up around $120," Hofmeister tells CNBC.
Demand may be down in the U.S., but it's not worldwide, which will keep prices on the upswing.
"Demand continues to rise in Asia and whether we use less or not doesn't matter."
China, for example, will see its economy grow by over 8 percent, and 20 million cars were sold there last year, most from new consumers, Hofmeister adds.
"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."
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