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.