Drill, Baby, Drill Strategy Won’t Lower Gasoline Prices, Will Enrich Big Oil - The massive increase in production hasn’t translated to cheaper gasoline at the pump, and prices are expected to stay relatively high for the next few years because of exploding demand for oil in China, India and developing nations and political instability in the Middle East and North Africa.
The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia’s output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America “the new Middle East.”
See, when your farmland turns into the Sahara thanks to unrestricted emissions from burning coal, oil, and gas, you’ll have a bunch of cool oil derricks to show for it.
And lest you were worried that there aren’t enough oil and gas shale plays to cover all our future Dust-Bowlified farm land, the U.S. Energy Information Administration (EIA) has this reassuring chart of North American shale plays, which can be tapped by fracking and horizontal drilling:
So who benefits from unrestricted drilling if not U.S. consumers or future generations?
The AP notes:
The companies profiting range from independent drillers to large international oil companies such as Royal Dutch Shell, which increasingly see the U.S. as one of the most promising places to drill. ExxonMobil agreed last month to spend $1.6 billion to increase its U.S. oil holdings.
The article ends with the cheerful glass-is-one-tenth-full words of economist Philip Verleger:
“Drivers will have to pay high prices, sure, but at least they’ll have a job.“