Luke Tonachel - Fact: US Drilling Doesn't Lower Gas Prices
March 28, 2012 The ‘drill, baby, drill’ approach to energy won’t ease your pain at the pump according to an analysis by the Associated Press. In an article running in papers across the country, AP puts it simply: “…more U.S. drilling has not changed how deeply the gas pump drills into your wallet, math and history show.”
The AP’s findings are not surprising. Gasoline prices are subject to the global oil market that U.S. producers cannot control. Changes in the price at the pump do not follow U.S. oil supply trends.
The AP compared inflation-adjusted gas prices to U.S. oil production from 1976 to the present and found no correlation between them. If they were connected one would expect a consistent trend where gas prices eased as production from drilling increased. But AP’s statistical analysis did not bear this out. Multiple statisticians and economists consulted by AP for verification of their analysis also agreed with the findings.
In a recent speech, Senator Jeff Bingamin also pointed out the lack of a relationship between U.S. oil production and gas prices using the chart below.
Read More:
http://switchboard.nrdc.org/blogs/ltonachel/fact_us_drilling_doesnt_lower.html
