Uther wrote:More US drilling didn't drop gas price
A statistical analysis
of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.
If more domestic oil drilling worked as politicians say, you'd now be paying about $2 a gallon for gasoline. Instead, you're paying the highest prices ever for March.
Uther, I already read the article before you posted it. Blah, blah blah! Al's rants aside.
Look at NG. In the US, due to overproduction and a glut in the surplus supply,due to the one of the warmest winters on record, NG is around $2.30/1000MCF. Europe and Japan pay 5 times as much because they don't produce it , but must have it shipped in, liquified.
Now take oil. We produce it, but not enough, but recently, are now producing more. Yes, drilling here will help gasoline pricing over time. Oil is definitely a global commodity, but we are starting to see a larger disparity between Brent crude, which the rest of the world gets and West Texas Intermediate crude. The price differential between the two used to be close, but today there is a 19 dollar differential and expanding. The rest of the world is paying more and we, will eventually pay less, by drilling. Refineries, man, refineries. They are the culprits locked into long term contracts.
What the Obama administration has failed to do, which does make this fiasco his fault, is not reigning in the speculators. And Congress, both democrat and republican are also to blame. If speculators were required to purchase the actual oil and have to store it, instead of merely purchasing a future's contract (paper), we would have 2 dollar a gallon or less gasoline. You could go out today and buy oil for 60 bucks a barrel instead of over a hundred bucks, if you had a place to put it.
But Congress does nothing but point fingers and make themselves richer, on both sides of the aisle. The percentage of congressional members that have holdings in companies with oil futures contracts is actually quite high. Screw the US citizen and "show me the money". World economies would collapse with the 150MPG vehicle. It's a global economy. Enjoy.