Google Images

This may be good politics. But it is absurd. Oil, unlike natural gas, is a globally traded commodity, whose price is set in world markets. In 2010, the U.S. produced 7.8 million barrels a day, 9 per cent of the world’s supply. Unlike Saudi Arabia, the U.S. lacks spare capacity: it is a price taker. Responding to his critics, Mr. Obama said: “We are drilling more. We are producing more. But the fact is, producing more oil at home isn’t enough to bring gas prices down overnight.” These remarks are correct, except for the last word. Producing more oil would have next to no effect on Read Full Article ››