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Home Publications Blogs Beat the Press Tell the Washington Post that All Non-Flat Earthers Believe that Oil Prices Are Determined in a Global Market

Tell the Washington Post that All Non-Flat Earthers Believe that Oil Prices Are Determined in a Global Market

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Wednesday, 04 May 2011 05:21

In an article that discussed the federal government's policy on offshore oil leases the Washington Post told readers that:

"Democrats and environmentalists say that in a global marketplace, such moves [authorizing offshore drilling] have far less impact on prices than unrest in Libya and other geopolitical factors."

It is not just Democrats and environmentalists who say this. Anyone who understands markets say this. At most additional offshore drilling can add a few hundred thousand barrels a day to world oil supplies. By contrast, Libya produced about 1.8 million barrels a day before its civil war, Algeria produces 2.1 million barrels and Saudi Arabia produces 9.8 million.

Changes in production by these major producers will have far more impact on the price of gas than our decisions on drilling offshore. People who know economics say this regardless of whether or not they are Democrats or like the environment.

Comments (4)Add Comment
[Blank] says
written by tom, May 04, 2011 9:31
Interesting how straightforward facts are presented as 'Democrats and environmentalists say', while conservative delusions are baldly asserted as truth.
...
written by izzatzo, May 04, 2011 10:28
Anyone who understands markets say this.


An essential condition of competition in the global oil market requires that small suppliers cannot signficantly influence supply quantities and therefore prices, i.e. they're price takers.

Teabagger oil swaggers are not price takers, they're price makers and don't you commie greenies ever forget it.
"Teabagger oil swaggers are...price makers..."
written by diesel, May 04, 2011 12:48
It's true. Whenever I see someone coming towards me on the street, whose hat is festooned with teabags and who wears the image of a chopped up snake on his teeshirt, I most assuredly step aside and yield the sidewalk to him, such is the self assurance in his swagger.
...
written by John Q, May 04, 2011 3:16
"Interesting how straightforward facts are presented as 'Democrats and environmentalists say', while conservative delusions are baldly asserted as truth."

Hey, it's Fox on 15th. What were you expecting?

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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