The Associated Press just released findings on a statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production that found no statistical correlation between how much oil comes out of U.S. wells and the price at the pump. And there you have it. In essence, drill, baby drill is just a pipe dream. Literally.
According to AP, “If more domestic oil drilling worked as politicians say, you’d now be paying about $2 a gallon for gasoline. Instead, you’re paying the highest prices ever for March.”
So why doesn’t domestic drilling lower the cost of gas at home? Oil is a global commodity and gas prices are subject to global actions that U.S. producers cannot control. Unrest in the Middle East and the increase of cars and production in China and India are two factors that contribute to rising gas costs. Continue reading