The “good” news: U.S oil production is at a 10 year high. The inevitable result: No significant impact on oil prices.
Now, for Fox News, this means Obama’s policies are to blame. But as we reported back in March, Rupert Murdoch’s Wall Street Journal and the Koch-Fueled Cato Institute agree: “It’s Not Obama’s Fault That Crude Oil Prices Have Increased”:
WSJ: “U.S. gasoline prices, like prices throughout the advanced economies, are determined by global market forces. It is hard to see how Mr. Obama’s policies can be blamed.”
Cato: “Is President Obama responsible for spiraling price of gasoline? Republicans say yes, but the facts say no.”
For more, see “20 Experts Who Say Drilling Won’t Lower Gas Prices,” which notes:
In a pretty impressive act of journalism, the Associated Press recently conducted a “statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production.” The result: “No statistical correlation between how much oil comes out of U.S. wells and the price at the pump.”
Here are recent oil prices:
Note how oil prices surged to record levels under Bush.
Obama has overseen a massive expansion of drilling — which has won him no friends on the left or right. Go figure!
Last year, the Wall Street Journal had the amazing chart on the right. “The figure reflects a huge surge in U.S. oil drilling, up nearly 60% in the past year and the highest total since at least 1987, when oil services company Baker Hughes Inc. began keeping track,” notes the WSJ.
The fact is oil prices soared again despite both record drilling and the highest domestic oil production levels in almost a decade. It should be obvious that yet more drilling can’t have any significant impact on oil prices — particularly since the U.S. Energy Information Administration has been making that precise point for years now (see EIA: Full offshore drilling will not lower gasoline prices at all in 2020 and only 3 cents in 2030!).
- “More Drilling Won’t Lower Gas Prices“: Soaring Domestic Production Has Failed to Ease Pain at the Pump