In the short term, President Obama’s opening some areas of our coastline to oil drilling will probably not have any effect on pump prices. It will be years before the process of actually producing oil from those offshore drilling sites will begin. First, the oil companies have to bid on the rights in various areas. When that’s over, it will still be years before the exploration can begin to find enough wells to really increase our gasoline supply. And even then, the world oil market is likely to be much higher. China especially is hungry for oil.
Predictions are that American highways will be carrying even more cars a decade from now. That means offshore oil may keep prices down a little, but there is not likely to be a dramatic drop in the prices at the pumps either. The price will also depend on whether or not the process of building more oil refineries is streamlined. But over time the offshore oil wells should take the pressure off gas prices somewhat.
With Americans hurting at the pump, it may be difficult for environmentalists and other opponents of increased domestic drilling to resist the push for more oil. One thing that we are not likely to see is a dramatic leak of oil into the ocean. Such catastrophic spills that take their toll on the environment can be handled much better by oil companies now than when the Exxon Valdez leak was a truly environmental disaster.
Let’s face it, our nation will run on petroleum for the foreseeable future. Becoming less dependent on OPEC seems a politically wise move too, in light of the growing hatred there for Israel and it’s key ally, the United States.
This is Carl Ramsey and that’s Another View of the News.
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