Today, former House Speaker Newt Gingrich promoted his “Drill Here, Drill Now,” dirty-energy-funded plan on C-SPAN’s Washington Journal and Fox and Friends. On both shows, he touted the work of an intern at the right-wing American Enterprise Institute, who Gingrich claimed “understands more more about economics than most of the politicians in this country.” His proof? The intern found a paper arguing that “the price of oil will drop almost immediately” if the U.S. expands domestic drilling.
The paper was rejected by the Energy Journal because the principle “is basically understood by every economist in the world,” Gingrich claimed. “Everybody who is a professional economist knows” that more drilling will make oil prices come down “immediately,” he declared. Watch a compilation of Gingrich’s appearances here:
Gingrich and his famed intern (who made his own appearance on Mike Gallagher’s radio show today) gleefully reported that the Energy Journal’s editor, James L. Smith, included a mocking shot at the Democratic Policy Committee in his rejection letter, claiming Democrats were the only ones who don’t understand the immediate benefits of drilling.
The cheap shot isn’t surprising, considering that Smith is a paid consultant for the world’s major oil companies, including ExxonMobil, British Petroleum, Conoco Philips, Marathon Oil Company, and Saudi Aramco. Last year, he was quoted in the New York Times praising ExxonMobil for being “disciplined” in its investments and fawning over the “Exxon way to approach every business prospect.”
Gingrich’s claim to have “every professional economist” on his side was too much even for Fox News’s Gretchen Carlson, who replied, “I find it interesting that more economists are not on the record saying that.” In fact, it’s much easier to find economists who say on the record that Gingrich is lying:
— “Obviously, if you do offshore drilling now it’s not going to give any short term help on the supply of oil. … That’s far away.” — Paul A. Samuelson, a professor of economics at MIT and winner of the 1970 Nobel Prize in Economics.
— “I have a problem linking the drilling to current gas prices for political reasons. The reality is there is no correlation between today’s prices and what gasoline will be discovered in the outer shelf.” — Dr. A.F. Alhaji, an associate professor of economics at Ohio Northern University
— “It won’t make any difference whatsoever [on gas prices] because new oil that could be found and produced on the new Outer-Continental Shelf won’t take place for at least eight to 10 years.” — Texas A&M Economics Professor Dr. John Moroney
— “Drilling in the Gulf starting today is not going to give us any relief this year, next year or the year after.” — Tom Oberhofer, an economist at Eckerd College in Pinellas County
— “It’s absurd to argue that ending the moratorium on drilling off parts of the U.S. coasts would quickly bring down the high price of gasoline.” — John Berry, Bloomberg columnist
— “Would starting to drill now do anything for consumers in the near future? The answer to this one…is probably not, since it’ll take so long for new oil or gas to come to market.” — Ken Green, an energy analyst with the American Enterprise Institute.
— “Opening off-shore drilling would have no impact whatsoever on gas prices today.” — Mike Rodgers, a leading oil expert with PFC Energy in Washington