Oil industry demand for more drilling permits to lower oil prices is phoney

The argument that more drilling, fewer regulations will bring down oil price spikes is a tired old story-

The oil industry recycles it for every international crisis, nevertheless; and the media take it seriously (sort of). Once again they are exposed, although simple logic tells us that a strategy that takes years to implement will not impact a short term price jump.

Oil and Gas Industry sitting on 7,200 drilling permits. By Environment & Energy and Environment Daily on March 29, 2011

Oil falls as low as $118 on demand concerns

The price of crude has dropped from $150 to $118 in the last month due to an absence of bad news and reduced demand. Oil falls as low as $118 on demand concerns. By Madlen Read. Washington Post.

Still the campaign to increase the supply of domestic crude on public lands continues in order to reduce the price a penny a gallon 5 to 10 years from now.

Presidential campaigns very often seem to procede off in some alternative universe.

Regarding demand, does anyone recall how Dick Cheney sneered at the notion of conservation of fuel (energy efficiency) back in 2002 after his secret energy task force met?

Time to remember that supply always equals demand except in the very short run or when certain kinds of subsidies are paid, price ceiling or floors are set, or rationing imposed.

Bush returns to orginal premise of his presidency — help oil companies

Brian Ertz posted a story several days ago about this topic. This is my take.

In the last week we have had the President’s answer to high energy prices, drill for domestic oil, and develop oil shale deposits.

The primary economic result of this will be to enrich the oil companies even more. They don’t know how to extract oil from shale and produce net energy. It’s like corn ethanol, only worse. It is not a matter of the price of a barrel of oil getting high enough to make oil from this rock containing a petroleum related substance a source of energy.