Why do neocons believe that additional oil drilling will lower prices?

Question

Considering that in May 2008, half of the oil that the USA imported, was exported as a finished product to another country?

Shouldn't Bush issue an executive order to suspend any additional exports of finished products before whining about developing additional resources in the US first? Especially considering that the majority of the finished products consisted of gasoline fuel (currently at $4.20/gallon), diesel fuel (currently at $4.75/gallon) and jet fuel (currently about $6/gallon).

http://www.guardian.co.uk/business/feedarticle/7690196

Answer 1

"half of the oil that the USA imported, was exported as a finished product to another country"

Refining margins are thinner than E+P margins - let's keep the profit in the US.    And it's a commodity - any supply increase anywhere in the market would cause prices to fall.

The primary problem we have is the weak dollar, but more supply couldn't hurt.

Answer 2

Supply and demand.  You should also become aware that the amount of oil that the USA produces has greatly DECREASED year after year BECAUSE of all the environ wackos and their lobbyists.  Oil/gas/jet fuel/diesel are all bought and sold on the open world market.  Should we produce more of these commodities, the amount on the world market is increased and thus prices would come down.  Again, supply and demand.

Answer 3

Oil is a finite resource and one day people will come to this understanding. And almost all forms of "alternative energy" themselves require fossil fuels to make.

Electric cars - require... ELECTRICITY

Biofuels require... Fossil fuel AND food

Food requires... Petro based fertilizers/pesticides/farm equipment/transportation.

Plastic are made from petro

This was a big problem back in the 1970's, but no one cared, now everyone expects an immediate solution. Even if we drill it will only last for so long, but it will provide some time to hopefully come up with some other form of energy.

And there is NO WAY that our country can be ran on simply solar/wind power. It will help reduce the strain, but by only a small margin. Conservation and a combination of every strategy is what is required. And even that is not going to solve what will replace petro.

Answer 4

This is an easy question: supply and demand.  Forget the executive orders; the US has treaty obligations with other countries that prohibit such restraint of trade.