Submitted by VMSmith (not verified) on Sun, 08/03/2008 - 15:32.
The price is set by investors. Offshore drilling won't have any effect on the price. The market responds to changes in supply and demand. Offshore drilling will change neither. Not in the short term, and not in the long term.
The supply would stay the same. It's based on demand. Today we need 40% domestic to 60% foreign petroleum to meet current demands. If we okayed drilling offshore and in ANWR and everywhere else, then in ten years that ratio might change to 42% domestic to 58% foreign. No difference.
Petroleum is an almost perfectly inelastic commodity. It's traded globally. The world markets will soak up any additional American output like it was nothing. There is absolutely no difference between foreign and domestic oil to the commodity market.
Not to mention that our refineries are running at capacity and we don't have the rigs or platforms to handle all the drilling we could be doing now.
Does Nobody Understand Commodities or Economics?
The price is set by investors. Offshore drilling won't have any effect on the price. The market responds to changes in supply and demand. Offshore drilling will change neither. Not in the short term, and not in the long term.
The supply would stay the same. It's based on demand. Today we need 40% domestic to 60% foreign petroleum to meet current demands. If we okayed drilling offshore and in ANWR and everywhere else, then in ten years that ratio might change to 42% domestic to 58% foreign. No difference.
Petroleum is an almost perfectly inelastic commodity. It's traded globally. The world markets will soak up any additional American output like it was nothing. There is absolutely no difference between foreign and domestic oil to the commodity market.
Not to mention that our refineries are running at capacity and we don't have the rigs or platforms to handle all the drilling we could be doing now.