Oil drilling

With gas prices what they are, there's been a lot of news lately about possible drilling in ANWR and expanding off-shore oil drilling.  Of course, what is usually not mentioned is just how incredibly marginal the impact of this will actually be on energy prices.  The government's own Energy Information Administration estimates that when ANWR would be fully on-line– a couple decades from now– we could expect a drop in the price of oil by a whopping $.75 per barrel (courtesy, Kevin Drum).  Would that even save us $.01 a gallon?  The simple truth is, oil is a global commodity in a global marketplace and nothing the US ever does is going to be more than a drop in the bucket.  All else being equal, presumably more oil is better, but let's not kid ourselves about the actual benefits. 

About Steve Greene
Professor of Political Science at NC State http://faculty.chass.ncsu.edu/shgreene

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