Will More Drilling Mean Cheaper Gas?

A 2004 study by the government’s Energy Information Administration (EIA) found that drilling in ANWR would trim the price of gas by 3.5 cents a gallon by 2027. (If oil prices continue to skyrocket, the savings would be greater, but not by much.) Opening up offshore areas to oil exploration — currently all coastal areas save a section of the Gulf of Mexico are off-limits, thanks to a Congressional ban enacted in 1982 and supplemented by an executive order from the first President Bush — might cut the price of gas by 3 to 4 cents a gallon at most, according to the Natural Resources Defense Council.

So, all this extra drilling may save you 8 cents a gallon by 2027 but make the oil companies billions of dollars. Is this another example of Republicans spinning the facts in order to make the oil companies richer?

Source: http://www.time.com/time/business/article/0,8599,1815884,00.html

39 Responses to “Will More Drilling Mean Cheaper Gas?”

  1. Fergi the Great Says:

    This is not a question or an inquiry. This is a chance for you to spew liberal talking points. It’s clearly evident from your tone that you already know the answer and you just want other people to agree.

    Go to the Department of Energy’s website. Oil companies earn $0.09 per gallon compared to the federal government which earns $0.17, and they DO JACK SQUAT to provide the oil.

    Now, drilling is no panacea. If we drill now, it will take years to bring it online. If we had started 10 years ago when Clinton vetoed it, it would be available now.

    in 2004, Nancy Pelosi promised to bring down gas prices. Gas cost $2.79/gal locally where I "live", and I know it’s currently $4.25/gal. So, stop scapegoating and flamebaiting and get a clue you hack.

  2. david Says:

    it depends

  3. George L Says:

    yes and more refineries and Nuclear Power Plants

  4. nick Says:

    i hope but it isnt a sure thought

  5. THE ANSWERER Says:

    No and it couldn’t possibly be worth it anyways.

  6. Jonny N Says:

    It will save money on gas. Just the fact that more will come available should bring prices down. But, i’m not an expert so who knows.

  7. Rhomp Says:

    I love when obama says that help for gas prices will only come years down the road, at the same time discourages oil drilling off the coast because it will help years down the road.

    Boo Obama.

  8. Will Says:

    probably not

  9. G-Man Says:

    LOL. I like it. However you guys ignore the simple fact that in 10 years oil prices will have stabilized with the fresh new supply and it will stop going up. Or would you like to keep having oil go higher and higher as well as gas.

  10. Brando Says:

    no the prices are up and aren’t going to go back down – the oil companies are making to much money to lower prices

  11. A................J.............. Says:

    It might, but we won’t see any affect till 2012+

  12. TL Says:

    No. Gas will not get cheaper because King George W. and his good ol’ boys in the oil industry have tilted the tables in favor of their wealth for the next 10 – 15 years at least.

  13. DaGUnsterrr I Says:

    prolly cuz it wuz a 2004 govnment’s eia thingi hope thts wut happens cuz i think there too high!!

  14. Chi Guy Says:

    Absolutely not.

  15. Duchess X Says:

    I’m with you on this one. Wouldn’t make a bit of difference.

    Check out all these refineries in the Gulf. There’s plenty of off shore drilling

    http://online.wsj.com/public/resources/images/NA-AG427B_OIL09212005204640.gif

  16. Tuck Says:

    i think gas is gonna go soon within the next 50 years i think it will all be hidrogen its hard to make but will fuel the world better. But i think we should stop drilling for oil havent we killed enough polar bears?

  17. ahhhlaska Says:

    Opening ANWR would open a huge amount of gas, which is why it is such a hot debate topic. This would lower the gas prices, although that truly depends on where you live. In Alaska, the gas prices would drop tremendously, but that also depends on if we ship it to the Lower 48 or if it goes straight to Valdez. It wouldn’t make a huge difference in the Lower 48, but more than 3 or 4 cents for sure.

  18. I got you...twice. Says:

    Eventually, but by that time, I’ll be flying my water ran carplane. So you can have at it for your pick ’em up truck.

  19. bumblebee Says:

    If you want cheaper gas, cut down on your driving. The public wants the government to do everything for them overnite.
    We need alternatives to oil and we need it yesterday. The price of a barrell of oil went down today because China’s demand went down. It’s all about supply and demand.

  20. Spirish_1 Says:

    Not to mention the fact that the oils companies already have 68 million acres of areas they have not even drilled yet. I wonder why that is? You think maybe it might because they don’t want to drill for more oil? I don’t know, maybe because if they did, then the price of oil would fall!

    I agree with you my friend…More spin from the Bush spin machine in my opinion.

  21. Gentle Giant Says:

    When did the Natural Resources Defense council become a reliable source for information? They are a group of environmental zealots who do not care what happens to the economy, our standards of living, our food supplies or our liberty as long as the double breasted bed thrasher is protected.
    Your numbers are severely distorted and biased in favor of the global warming wierdos.
    Talk about spining the facts.
    Your rant is pure fiction.

  22. bonehead Says:

    I am not sure about the politics of all this, other than the rich are getting richer. There was an oil company, back in the 80’s that taped in to, at the time, was called a "significant" find. It was mapped and capped, and it still is to this day. I would not be surprised to know of ALL the capped wells there are, that we are not using. I know, I know, we can’t deplete our resources. But, how can we ever know the truth of anything? And, who are the traders who are buying the oil, spiking up the prices? I mean are they oil company people, who are they???

  23. Armando G Says:

    The great nation of the United States only cares about their interests and not the consumers.

  24. caldude1010101 Says:

    If there is a glut of oil on the market, OPEC will cut production and the price will remain the same.

  25. kayla h Says:

    maybe

  26. TAP Says:

    Its All B-U-L-S-H-I-T , robber Barron’s keep the prices up ,, GREED at the federal government levels , you can read all the studies you want to,, the bottom line is,, as long as we lay down as a nation and ask for more ass penetration , that is what we shall get.

  27. Greg Says:

    The price of gas is more affected by the price elasticity of demand. Worldwide demand for oil, especially gasoline and diesel, is rising. India and China are using more every day. Adding a small amount to the supply by drilling in ANWR won’t affect much change to the price of a barrel of oil, since the demand already outstrips the supply of oil.

    Also, the dollar is very weak and oil is a global commodity, so it takes more weak dollars to buy a barrel of oil than it does strong dollars. The dollar will probably not rebound quickly due to all of our foreign debt obligations.

  28. imissmynewgrandaughter Says:

    Yes! They are just trying to SCARE us into letting them ruin our environment by telling lies that it will help things. There is only about 2 years worth of oil for them to get, it will take at the very least 5 years to process it. What good is that going to do? Only make the oil companies richer and if there is any accident (and there ALWAYS is), it will ruin our coasts and Alaska! Some things are more important than money and saving our beautiful environment is one of those things!!!

  29. Lev8mysoul Says:

    The main reason for the need to drill is so that the US can become more independent from foreign oil, which in turn would help cut the costs because the US wouldn’t be having to be at the mercy and the whims of OPEC and how much they want to or need to raise their prices.
    The US, in any new oil drilling, should also be forced by law to keep all oil drilled off the coast and in the ANWR here in the US, preventing the US from being able to sell any of it to other countries. It would help keep costs lower until alternative fuel sources can be developed. Got any other ideas to help us out in this?

  30. afreshpath_admin Says:

    More drilling AND pumping of crude now may have a slight impact on gas prices but it will be a small improvement.

    Though we do need to drill and pump more crude in the short term, we absolutely MUST advance the development of alternatives to oil. This is just plain good business. More options means greater competition. Greater competition provides better and cheaper options for the consumer. It ain’t just about "global warming"!

  31. George G Says:

    Not really. Buy the time they build the offshore drilling platform, the refineries, the nuclear power plants and get it to market it will be five years at best, most likely ten years. Who are they kidding. The cost will never come down because they have to past all of those expenses on to you and I.
    Don’t hold your breath!

  32. D L Says:

    more oil drilled MIGHT equal more oil produced. just cuz a well is drilled doesnt mean it has to be pumped.

    refineries produce gas and other products. drilling and pumping more oil makes more crude available for refining BUT the capacity of the refining plants has to be in place.

    HERE are the real glitches in the system…
    1. if the production of oil exceeds the capacity of the refining plants more drilling wont help.
    2. if the demand from the refiners is low adding capacity wont help.
    3. if sufficient crude and refining capacity is available the refiners can still limit production by not operating at 100% capacity.

    so what drives the cost of gas? classic supply vs demand. both producers and refiners control supply while consumers control demand.

    will more drilling help? maybe.

  33. Poet_Lleri_el Says:

    No, it means more holes ion the Earth, as the oil companies pass the cost of more drilling onto the world of gas guzzling contraptions.
    Knowing they hold the world ransom, they will continue to raise the price of oil and gas. There is little humans can do, because they are the only being who can choose to stop using the filthy ooze.
    With all the other ways to generate power and propel machines, all their talk of "Green" and "Global Warming," what change has there been in the usage of gas and oil? NONE, in fact it has increased.
    Stop using gas and oil, altogether and watch the price plummet.

  34. Max50 Says:

    Yes increase supply will lower the cost.

  35. Apu Nahasapeemapetilon Says:

    Supply and Demand – 101 Economics

  36. Jay on the coast Says:

    Well that pocket of offshore oil are small, spread out over a very large area and very expensive to get to all of the little pockets. Back in the 80’s the technology at the time would have meant building a whole rig over every small pocket a huge cost for the return.

    Today there is the technology to reach these pockets of oil with mobile rigs that use a drill that can change direction like a bendy straw.

    Maybe you should ask are the Republicans waiting to use this prospective drop in gas prices to help McCain in the upcoming Presidential race.

  37. Huevos Rancheros Dos Says:

    Yes, and more jobs.

  38. wayfaroutthere Says:

    Yes. The republicans give our resources to well-connected businesses, such as the oil industry, all the time. They spend more than the democrats almost every term. They cut "social programs" that not only include the welfare that people hate so much, but things like grants for college, money for high schools, and things that actual working people use. They run up our cost of living without lowering taxes, decide that the supposedly free market will regulate wages, and then say that people with jobs shouldn’t be so lazy and need to make more money, and that it is their fault they don’t.

    It wasn’t many years ago that a man could support a family with one good job. If he needed more money and got a second job, his boss would give him a raise and tell him to stop ‘moonlighting’ so he could give all his effort to one job. Do you know anyone who doesn’t have either a degree or a business they built for many years who doesn’t need to have their wife work in order to buy a house? That’s what happens when you say ‘free market’ regarding wages (and the little guy in general), and then give resources and tax dollars to big business.

  39. UNDERDOG Says:

    Ever hear’d of SMC? The offer was (legitamate) that you order wharehoused merchandise and specialty crafted items from other countries to sell direct to local customers at 300% profit and up, while, to purchase these things from other countries they pay them pennies to a few dollars. They’ll purchase a thing for like $5.00 and offer you to sell it for like $26.00 to $29.00! If that sounds like a good deal for you to profit and get rich, then you shouldn’t mind…"it snot what yoo candoo 4 yor country, butt what yor country candoo 2 U!"