And know you know, the rest of the story

**DJ Ms. White** · 03-22-12, 01:50 AM

Well, not like those classic stories (my favorite was the the one about Lucille Ball). However, we've heard for a while now that increasing drilling will decrease gas prices. It is interesting to see the rest of the story (the analysis), namely that that is not true at all.
FACT CHECK: More US Drilling Didn't Drop Gas Price - ABC News

**dex71** · 03-22-12, 04:53 AM

Not sure how much I buy their theory. They seemed to have left out one of the biggest factors of our gas prices....the refining process. Not one mention of it, and refining is what makes up a significant portion of our price per gallon.

Sure, more crude doesn't automatically mean lower prices....but it's a start. We know that demand isn't exactly going down, so a higher supply of the basic materials is the first step. Maybe we need more refineries, as well as more crude.....the article never once mentioned refineries.

Taxes would also be another place we should scrutinize a bit. How much does the Fed tack on for not finding it, drilling for it, pumping it out of the ground, shipping it, refining it, or selling it. Now how much does your state add? It's easy to find sound bites of our elected weasels bitching about the price of gas, but you rarely hear them talk about lowering the tax on it.

**deathgodusmc** · 03-22-12, 06:46 AM

It wouldnt matter if we tapped every oil reserve on the planet. All these companies already know what the earning potential is on oil.

**SpecOpsScott** · 03-22-12, 07:38 AM

Refineries have always been a bottleneck. That said, i always get a laugh out of those who think more drilling right now will make a difference. Also, in NY there has been "talk" of suspending the gas tax.... but that was back in '08. And DG is right, there are market forces at play as well.

**WickedTribe** · 03-22-12, 07:58 AM

Haha, I was just looking around for old posts last night that mentioned ANWAR, I was going to post this.

Drill, baby, drill, right?

**AetheLove** · 03-22-12, 08:03 AM

Yeah.

Oil trades on a world market. There are proven oil reserves in US territory, but they are a small part of world reserves. What we do or don't drill here has a small effect on world production and therefore a small effect on the price of gas at the pump.

War near the Straights of Hormuz? That'll have a real impact. More US drilling? Drop in the bucket.

Selling gas is profitable, and if you're in the business of getting oil and making gas then it's nice to get financial incentives to develop a particular field. Favorable lease terms, tax breaks, relaxation of safety or environmental standards (or enforcement), all help your bottom line. None of that does much to affect the price at the pump, but since that price is up it's good PR to place the blame for that somewhere else.

My personal feeling about domestic production is: what's the rush?

In the long run, oil and gas prices are only going to go up. Extraction technology is only going to improve. Over time we get better, and safer, and cleaner at getting it out of the ground.

Cheers,

AetheLove

**WickedTribe** · 03-22-12, 08:04 AM

Originally Posted by dex71

Not sure how much I buy their theory. They seemed to have left out one of the biggest factors of our gas prices....the refining process. Not one mention of it, and refining is what makes up a significant portion of our price per gallon.

Sure, more crude doesn't automatically mean lower prices....but it's a start. We know that demand isn't exactly going down, so a higher supply of the basic materials is the first step. Maybe we need more refineries, as well as more crude.....the article never once mentioned refineries.

Taxes would also be another place we should scrutinize a bit. How much does the Fed tack on for not finding it, drilling for it, pumping it out of the ground, shipping it, refining it, or selling it. Now how much does your state add? It's easy to find sound bites of our elected weasels bitching about the price of gas, but you rarely hear them talk about lowering the tax on it.

I'm not sure that I see your argument - these aren't experimental data, these are real-world statistics. They take account for all of these factors because they're looking at real data from real prices.