Domestic Oil Drilling Won’t Lower The Price At The Pump For Americans

The numbers are in thanks to The Congressional Budget Office (CBO), and it is (still) obvious that “Drill Baby Drill” will not do much to save American’s money on the high cost of fossil fuels.

The price of gasoline and oil has been a roller coaster ride the past few months, and during a time of American economic uncertainty unpredictable fuel prices are causing hardship for many American households. Oil companies and conservative politicians are using high gas prices as an excuse to drill for fossil fuel domestically, becoming less-reliant on the global fuel market.

The above graph shows the reality of the fossil fuel market. The nation of Canada produces all of its own oil. In contrast, the nation of Japan imports all of its oil. Meanwhile there is the U.S., a nation that both produces and imports some oil. Although all three nations use different methods to get oil, all three nations show the same wide swings in gas prices according to the CBO’s research and published results.

The reason for this is that there is a single global price for oil. Unless the U.S. wants to jump out of the global oil market (never going to happen) and thus forgo oil export rights and clients (never going to happen), than domestic drilling is not going to make fossil fuel prices in the U.S. cheaper.

via Domestic Oil Drilling Won’t Lower The Price At The Pump For Americans.

Categories: Energy, Transportation