The normally semi-rational USA Today thinks a good response to higher gasoline prices due to MidEast unrest is more domestic drilling, even though that would have no noticeable impact on U.S. gasoline prices — ever! — according to the US Energy Information Administration (see “EIA: New offshore drilling will lower gasoline prices in 2030 a few pennies a gallon).
CAP’s Daniel J. Weiss offers the opposing view.
Unrest in Libya and Egypt is driving up oil prices, stirring concerns that gasoline could hit $5 a gallon by summer. Like a smoker’s persistent cough, it’s another warning to change our ways. America sends nearly $1 billion daily overseas to purchase oil, which is nearly half the trade deficit. Nearly 20% of our oil imports come from the Persian Gulf, where instability causes roller coaster prices.
“Drill, baby, drill” won’t get us out of this mess.