Why drilling in the Arctic Preserve won’t decrease gas prices

The Republicans are stepping up their campaign to allow Big Oil to drill in the Arctic Wildlife Preserve. They are saying that allowing the drilling will increase the amount of oil produced and therefore will force oil prices down. More supply equals lower price. This will not work the way they say it will.

Republicans readily admit that any oil to come from drilling in the preserve will not hit the market for 7 to 10 years, so there will be little effect to be felt until then. But there is an important word in that last sentence, market. The US will be selling leases to drill to Big Oil not so that America will have more oil, but so that the world has more oil. The oil is coming from our nation, but it will be sold on the global markets.

What do you think demand will be like in 10 years? While demand may be lower in the US in 10 years, global demand (Asia) will be much, much greater. So, much of the oil we take from our borders will most likely end up going to China and India. Will prices at the pump in the US be lower ten years from now? The smart money would be that prices will be significantly higher than today, despite whatever lower demand we can achieve. As long as global demand rises, prices will climb.

So face facts boys and girls, the only winners here would be Big Oil & Big Money. The rest of us would be the losers. If you want to allow the drilling at least make sure your lawmakers know that you want American oil for Americans. Its the least we should expect since we’re putting our environment at risk.

Oil drops, like they waned it to

A barrel of oil dropped from $147 to $129 in the last week. Reasons are myriad from the experts. The real reason is that the powers behind the oil increase (Big Oil & Big Money) need to have oil not be a factor when the election rolls around in November. With oil lower, Americans will feel more confident voting Republican in the fall. Big Oil needs a win so it can gain its much desired drilling rights in the Alaskan Wilderness Preserves. A Democratic win almost ensures that these drilling rights will take much longer to get. Look for oil to continue its rise in earnest after the election, regardless who wins.