More Drilling Doesn’t Actually Help With Oil Prices

20Aug08

I’ve heard a lot of good arguments as to why increasing drilling off-shore will not actually do anything to decrease our oil prices. The most obvious reason is that it just perpetuates the addiction to oil since we end up putting a lot of money and effort into finding more fossil fuel that could have gone into renewable alternatives. I also came across this nice roundup of reasons from The Seminal as well.

There’s also the fact that Americans consume 25% of the world’s oil supply and only holds less than 3% of the world’s reserves. So, let’s say that off-shore drilling magically produces DOUBLE the oil that USA produces. Then we still are looking around the world for the other 19%.

But, let’s talk business for a minute. Who gets that oil? Is it me and you? Does opening up off-shore rigs ensure that Americans get cheaper oil prices? No.

You see, it’s still the oil companies that get the oil. They’re still out to make a profit (not to make sure you have cheaper gas). If they get more oil by drilling off-shore, then they just get more oil to put on the international market. If some other country wants to pay more for that oil, then your gas is still $4 a gallon. The only way to stop paying $4 a gallon for gas is to find something other than gas to spend money on. Catch my drift?

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