{"id":2319,"date":"2008-06-25T21:51:21","date_gmt":"2008-06-26T01:51:21","guid":{"rendered":"http:\/\/www.brianarner.com\/weblog\/wordpress\/2008\/06\/will_drill_dril\/"},"modified":"2008-06-25T21:51:21","modified_gmt":"2008-06-26T01:51:21","slug":"will_drill_dril","status":"publish","type":"post","link":"http:\/\/www.brianarner.com\/weblog\/2008\/06\/will_drill_dril\/","title":{"rendered":"Will &#8220;Drill! Drill! Drill!&#8221; Pop The Alleged Oil Price Bubble?"},"content":{"rendered":"<p>Recently I&#8217;ve heard rightists making some remarkable claims regarding the impact that <em>future<\/em> American oil exploration\/drilling will have on <em>current<\/em> prices.  They are trying to convert Americans&#8217; frustration with high gas prices today into support for long-term projects.<br \/>\nFor example, I heard energy analyst\/comedian Rush Limbaugh speculate if the United States merely announced that it was ramping up oil production, oil prices might immediately plummet $30\/barrel.<br \/>\nDoes such conjecture hold water?  Commodity markets are very volatile, and I am very bad at predicting the future.  But we need not look beyond this week&#8217;s news headlines for evidence that such claims are wrong.<br \/>\nLast weekend <a href=\"http:\/\/www.chron.com\/disp\/story.mpl\/front\/5851265.html\">Saudi Arabia announced<\/a> that it is immediately increasing production (from existing oil wells) by 200,000 barrels\/day.  Moreover, it claims that it can increase capacity by 2.5 million barrels\/day in 2009.  [Compare that to estimates that ANWAR offers no more than 1 million barrels\/day].<br \/>\nHow have the markets responded to this news of increased supply?  Have the supposed speculators been crushed, sending oil futures in a downward spiral?  Not yet.  Last Friday oil closed at $134 and today oil closed at . . . $134.<br \/>\nSo if the near-term promise of 2.5 million barrels of Saudi oil generates no significant movement in oil futures prices, why should we think that the promise of 1 million barrels of American oil (in eight years) will take a big chunk out of gas prices today?  It won&#8217;t.<\/p>\n","protected":false},"excerpt":{"rendered":"<a href=\"http:\/\/www.brianarner.com\/weblog\/2008\/06\/will_drill_dril\/\" rel=\"bookmark\" title=\"Permalink to Will &#8220;Drill! Drill! Drill!&#8221; Pop The Alleged Oil Price Bubble?\"><p>Recently I&#8217;ve heard rightists making some remarkable claims regarding the impact that future American oil exploration\/drilling will have on current prices. They are trying to convert Americans&#8217; frustration with high gas prices today into support for long-term projects. For example, I heard energy analyst\/comedian Rush Limbaugh speculate if the United States merely announced that it [&hellip;]<\/p>\n<\/a>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2319","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"h-entry","8":"hentry"},"_links":{"self":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/2319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/comments?post=2319"}],"version-history":[{"count":0,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/2319\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/media?parent=2319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/categories?post=2319"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/tags?post=2319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}