Tuesday, July 15, 2008
Can we drill our way to lower oil prices?
a) If the oil companies drill enough to significantly lower prices, it'll cause their profits to fall - remember, supply *is* still ahead of demand!
b) The oil companies like their profits.
So why the bullshit push to open new drilling areas?
The more places the oil companies *can* drill, the greater the likelihood they have of finding oil that's cheaper to bring up. Cheaper oil means higher profits (reference b), above). Plus, every lease they hold is an asset on their balance sheets.
So, yes, Bush is lying, and simply pushing hard to pander to his buddies in the oil business. Is this a surprise?