The oil industry is pushing for more domestic drilling claiming it will lower oil prices.
March 23, 2012- The oil industry has laid out proposals it says will lower the price of gasoline. The proposals say there needs to be additional oil production domestically, no more increases in taxes on the industry and fewer regulatory controls with regard to the environment. However, analysts instantly said that these proposals would do nothing to lower the price of gasoline immediately.
More domestic drilling has been one of the keys for lowering prices, the industry has said for years. The industry calls for unlocking the energy potential in the U.S. Studies the industry has said that if drilling were allowed on both the east and west coasts on federal land that does not include the Alaskan national wildlife refuge or a national park, another 10 million barrels daily could be produced by the year 2030. That would double the current oil production in the country as of today.
The industry believes that by just announcing that this drilling would take place it would instantly create a lowering of oil prices. American Petroleum Institute’s Jack Gerard said, “Markets tend to be driven by expectation.”
He noted that the price of oil fell by $16 in just two days when a moratorium on drilling was lifted by George W. Bush in 2008.
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