The argument that more drilling, fewer regulations will bring down oil price spikes is a tired old story-
The oil industry recycles it for every international crisis, nevertheless; and the media take it seriously (sort of). Once again they are exposed, although simple logic tells us that a strategy that takes years to implement will not impact a short term price jump.
Oil and Gas Industry sitting on 7,200 drilling permits. By Environment & Energy and Environment Daily on March 29, 2011
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Ralph Maughan
Dr. Ralph Maughan is professor emeritus of political science at Idaho State University with specialties in natural resource politics, public opinion, interest groups, political parties, voting and elections. Aside from academic publications, he is author or co-author of three hiking/backpacking guides, and he is past President of the Western Watersheds Project.
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The 5 myths:
http://www.courier-journal.com/article/20110329/OPINION04/303290031/1016/OPINION/Robert-Rapier-Five-myths-about-gasoline-prices?odyssey=mod|newswell|text|Opinion|s
True enough. The current oil price spike is totally related to futures/options trading. If the manipulating knuckleheads and emotional investors who push the price up were forced to take delivery of the oil they tie up with their options contracts, they would not be in the market and prices would be at least $20-30 lower per barrel…and the pressure for drilling in dicey areas would be much diminished…
The oil market is one that really needs to be redone, the way it works now is a joke for everybody except the speculators!
Capitalism at it’s finest. The oil market is controlled by the US banking system. They create the floor, the ceiling and therefore, some of the demand.
Frankly, when it costs more, people consume less. Which is great for the carbon emmissions. But when people (mostly Americans) decide the price is too high, they put drilling back on the yes list, even in dicey places.
In the end, where and how much we drill, has very little to do with how much is charged for oil.