Friday, January 4, 2013

Drilling More Oil is an Incomplete Solution at Best

The fundamental flaw in the assumption that drilling more will help is that oil companies are not “ours.” They are not owned by the government. So they charge American consumers the same price they would charge anyone else in the world, and the world oil price is set by OPEC. So no matter how much “we” drill, what we pay at American gas stations remains unaffected.

Although it’s true if we drilled more oil in America and it was sold to Americans, OPEC would not make any money from Americans (except where OPEC nations have invested in American oil companies), OPEC nations would still sell their oil to everyone else in the world, still reap unbelievable windfalls week after week, still have money to influence our government, Saudi Arabia would still have plenty of money to spread Wahhabism, OPEC would still control the price of oil, and the American economy would still be vulnerable to the capricious and hostile whims of OPEC nations.

Oil’s worldwide monopoly on transportation fuel would remain unchanged.

Drilling “our own” oil would improve America’s trade deficit, and it would generate American jobs. But if it doesn’t lower gas prices, if it keeps us stuck as a one-fuel economy, if it keeps our economy stuck riding the ups and downs of OPEC’s whims, and if it keeps the money flowing to OPEC from the rest of the world, drilling more is only a partial solution at best.

Fuel competition, however, is a complete solution. It will solve all those problems and more.

Read more: Drill Baby Drill.

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