AP: More Drilling Hasn't Dropped Gas Prices
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The Almighty
So these geniuses set out to show that US supply increases don't decrease US pumps. Wow... they should be fired for wasting time with such a study.
It is worldwide production and demand that matters in the end. That said, the article is wrong to proclaim that we can't do much about it on our own. We most certainly can do that. We just have to have the idiots in DC grow spines and get the job done.
It is worldwide production and demand that matters in the end. That said, the article is wrong to proclaim that we can't do much about it on our own. We most certainly can do that. We just have to have the idiots in DC grow spines and get the job done.
What bullshit......circular reasoning......
Its the huge increase in the amount we import ....not the amount we drill....
If the increase in imported oil far exceeds the meager increase in domestic drilling it has less of an impact.....plus
the worldwide demand is up.......
Its not just ONE issue that effects the price of oil.......and this hit piece doesn't say the cost of gas wouldn't be even higher
if we were not drilling as much as we are....
Its the huge increase in the amount we import ....not the amount we drill....
If the increase in imported oil far exceeds the meager increase in domestic drilling it has less of an impact.....plus
the worldwide demand is up.......
Its not just ONE issue that effects the price of oil.......and this hit piece doesn't say the cost of gas wouldn't be even higher
if we were not drilling as much as we are....
G
Guns Guns Guns
Guest
Explain how, SuperFreaky.
PostmodernProphet
fully immersed in faith..
Obama reinstated restrictions on domestic production of oil in February, 2009....the price of oil has been rising ever since.....this proves that liberals ignore facts....
G
Guns Guns Guns
Guest
The United States reduced net imports of crude oil last year by 10%, or 1 million barrels a day.
The U.S. now imports 45% of its petroleum, down from 57% in 2008.
U.S. crude oil production increased by an estimated 120,000 barrels a day last year.
Current production, about 5.6 million barrels a day, is the highest since 2003.
http://articles.latimes.com/2012/ma...mestic-production-highest-since-2003-20120311
PiMP pwned..
PostmodernProphet
fully immersed in faith..
actually, poster with a name like a badly combed crewcut, I have provided you with data in three threads now that you haven't had the balls to respond to....I believe that makes you the pwnee instead of the pwnor.....
G
Guns Guns Guns
Guest
Your "beliefs" aren't rooted in fact, PiMP.
Higher US oil production hasn't led to a price decrease. You lose.
Pwned, PiMP.
FACT CHECK: More US drilling didn't drop gas price
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' charges 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. It was a case of drilling more and paying much more.
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 basic 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 making that observation for decades.
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 GOP presidential candidates.
Earlier this month, GOP front-runner Mitt Romney said of his solution to higher gas prices: "I can cut through the baloney ... and just tell him, 'Mr. President, open up drilling in the Gulf, open up drilling in ANWR (the Arctic National Wildlife Refuge). Open up drilling in continental shelf, drill in North Dakota, drill in Oklahoma and Texas.'"
Sen. Lisa Murkowski, R-Alaska, said on the Senate floor last week, "With oil prices above $100 a barrel and gasoline soaring toward $4 a gallon, greater production is not a political opportunity, it is a legislative imperative."
Supporters of the controversial Keystone XL pipeline say it would bring 25 million barrels of oil to the United States a month. That's the same increase in U.S. production that occurred between February and November last year. Monthly gas prices went up a dime a gallon in that time.
The late 1980s and 1990s show exactly how domestic drilling is not related to gas prices.
Seasonally adjusted U.S. oil production dropped steadily from February 1986 until three years ago. But starting in March 1986, inflation-adjusted gas prices fell below the $2-a-gallon mark and stayed there for most of the rest of the 1980s and 1990s. Production between 1986 and 1999 dropped by nearly one-third. If the drill-now theory were correct, prices should have soared. Instead they went down by nearly a dollar.
The AP analysis used Energy Department figures for regular unleaded gas prices adjusted for inflation to 2012 dollars, oil production and oil demand. The figures go back to January 1976, the earliest the Energy Department keeps figures on unleaded gas prices. University of South Carolina statistics professor John Grego, New York University statistics professor Edward Melnick and David Peterson, a retired Duke University statistics professor, looked at the analysis, ran their own calculations, including several complicated formulas, and came to the same conclusion.
When U.S. production goes up, the price of gas "is certainly not going down," Melnick said. "The data does not suggest that whatsoever."
The calculations "help make the point that U.S. production and demand have little to do with the price of gasoline in the U.S., and lend support to the notion that there is not a great deal we in the U.S., acting alone, can do to affect the price of gasoline," Peterson wrote in an email. He pointed out that Energy Department figures show that gas prices in the U.S. seem to rise and fall similarly to gas prices in Europe, showing that it has little to do with American drilling.
And that's the key. It's a world market, economists say.
Unlike natural gas or electricity, the United States alone does not have the power to change the supply-and-demand equation in the world oil market, said Christopher Knittel, a professor of energy economics at MIT. American oil production is about 11 percent of the world's output, so even if the U.S. were to increase its oil production by 50 percent — that is more than drilling in the Arctic, increased public-lands and offshore drilling, and the Canadian pipeline would provide — it would at most cut gas prices by 10 percent.
"There are not many markets where the United States can't impose its will on market outcomes," Knittel said. "This is one we can't, and it's hard for the average American to understand that and it's easy for politicians to feed off that."
If drilling activity rises around the globe for a sustained period of time, gasoline prices can fall as that new supply eventually finds its way to market, but the U.S. can't do it alone, oil analysts say.
Politicians — especially those in the party that's not occupying the White House — have long harped on high gas prices when expedient. Then-Sen. Barack Obama said in 2008, when he was running for president, that "here in Ohio, you're paying nearly $3.70 a gallon for gas, 2-1/2 times what it cost when George Bush took office."
The political party of the president doesn't seem to matter to the price at the pump either. Since 1976, the average monthly gas price, adjusted for inflation, during Democratic presidencies has been $2.25; under Republicans it's been $2.34. Obama had the steepest monthly average at $3.05 and Bill Clinton the cheapest at $1.68.
When Bush and running mate Dick Cheney campaigned in 2000, they argued that as oil executives they could get oil prices down, with Bush saying, "I would work with our friends in OPEC to convince them to open up the spigot, to increase the supply."
Yet it was during the last few months of Bush's term in 2008 that gas prices hit their highest: $4.27 when adjusted for inflation.
http://www.cbsnews.com/8301-505245_162-57401352/fact-check-more-us-drilling-didnt-drop-gas-price/
Again, you conveniently ignore some pertinent information....
From your link.....
But independent analysts attribute much of the fall in oil imports to slack U.S. demand in a still-anemic economy. And to a certain degree, they say, the boost in domestic oil and gas production is the result of decisions energy companies made during the George W. Bush administration to develop key reservoirs.
....................
What does this say ?
Obama's and Democrats destruction of the US economy is responsible for the fall in oil imports......
only as AssWipe can try to pass that fact off as a good thing.....an Obama accomplishment......so
if he totally destroys the economy we won't be importing any fuckin' oil and you'll try to tell us what a good job Obama is doing as a result....
The RISE in domestic oil production is the result of decisions energy companies made during the George W. Bush administration to develop key reservoirs.
so as you brag about the US producing more oil now than in 2003, it turns out that its a result of GWBush, and not Obama the Pinhead....
The rise in US production and the lower US imports together were not enough to offset the rise in world demand which is the major cause of the rise in oil prices.....and its that rise we have to pay for as we import oil, even if its not as much as usual.......
So stuff it AssWipe, you're not really fooling anyone with the liberal media bullshit spin to make Obama look better than the clown he really is....
Consider yourself pwned again, as usual.
That is very strange. Must be some sort of disconnect or misrepresentation. It is widely reported that US oil production is up more than 350% than the day President Barack Hussein Obama was inaugurated. I thinketh you reflecteth false information to excess, pimp.
G
Guns Guns Guns
Guest
Long-term options to try to influence prices include increasing domestic oil production, cutting gasoline demand, using more biofuels and encouraging drivers to buy electric cars.
The United States is doing all of those things.
Domestic oil production has grown each year since 2008 - the first multiyear increase since the 1980s.
As companies use hydraulic fracturing - known as fracking - to coax oil from underground shale formations, U.S. production has swelled from 4.95 million barrels per day in 2008 to an estimated 5.59 million barrels per day last year, according to the federal government's Energy Information Administration.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/29/BUN71NDJQG.DTL#ixzz1pqGWzpKG
The United States is doing all of those things.
Domestic oil production has grown each year since 2008 - the first multiyear increase since the 1980s.
As companies use hydraulic fracturing - known as fracking - to coax oil from underground shale formations, U.S. production has swelled from 4.95 million barrels per day in 2008 to an estimated 5.59 million barrels per day last year, according to the federal government's Energy Information Administration.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/02/29/BUN71NDJQG.DTL#ixzz1pqGWzpKG
PostmodernProphet
fully immersed in faith..
no, newestLegion, my information isn't false, though your implication is....it is true that US oil production is up.....the result of projects that went ahead during that window from July, 2008 and February, 2009.......just think how much higher it would be if Obama hadn't reinstated the restrictions.....
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The Almighty
The increase in production is not from Federal production, it is from state and private lands. Federal production was down 11% last year.
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o'rly?
The aim is to deal with excess supply that is keeping gasoline prices in this region low but high elsewhere.
"Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy," Obama said standing in front of thousands of pipes that will eventually help transport a glut of oil from Cushing to the Texas side of the Gulf of Mexico.
Read more: http://www.foxnews.com/politics/201...ma-backs-southern-pipeline-leg/#ixzz1psKVGcvw
Read more: http://www.foxnews.com/politics/201...ma-backs-southern-pipeline-leg/#ixzz1psKLMKov
The aim is to deal with excess supply that is keeping gasoline prices in this region low but high elsewhere.
"Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy," Obama said standing in front of thousands of pipes that will eventually help transport a glut of oil from Cushing to the Texas side of the Gulf of Mexico.
Read more: http://www.foxnews.com/politics/201...ma-backs-southern-pipeline-leg/#ixzz1psKVGcvw
Read more: http://www.foxnews.com/politics/201...ma-backs-southern-pipeline-leg/#ixzz1psKLMKov
PostmodernProphet
fully immersed in faith..
I'm curious.....if presidents can't do anything to effect oil prices, why did Obama fly all the way to Oklahoma to claim he had a strategy......
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while presidents are minimally responsible...it is interesting that obama said, and this is a quote:
Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy...
but dems claim that more drilling is the not the answer
PostmodernProphet
fully immersed in faith..
also interesting that producing more oil at home is crucial but his administration held only one lease auction in 2011 and none so far in 2012......
Drilling isn't the answer. And maybe I missed it, but when was it determined that everything Obama says is true?
Because whether he has anything to do with it or not he will be blamed for it so he's got to at least appear to be trying to do something.
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right...that is why the region, which has excess oil, has lower prices than anywhere else.
did i say obama is right about everything? just another dung strawman...