Why should we 'believe' the oil co.s when the say more drilling will bring down the price of gas?

Question

Just this week the oil companies got the oil fields in Iraq 'given' to them. No price drop!

Saudi Arabia will boost production. No price drop!

Demand is way down in the US. No price drop!

Oil companies hold millions of acres of drilling leases right now, but refuse to drill in those sites. No price drop!

Yet the oil companies claim that more drilling would bring down the price at the pump.

Do you 'believe' them?

Answer 1

You are right it wouln't, all the experts are unanimous that drilling more OIL wouln't lower gas prices . . . even President Bush conceded that it wouln't have a major impact.

The reason is simple, the reason prices are going up is due to 'supply & demand'. Not enough OIL supply to meet the demands, countries like China & India are consuming more and more OIL and are willing to pay higher. Inflation doesn't help either.

"A 2004 study by the government's Energy Information Administration (EIA) found that drilling in ANWR would trim the price of gas by 3.5 cents a gallon by 2027. (If oil prices continue to skyrocket, the savings would be greater, but not by much.)"

"The reason is simple: the U.S. has an estimated 3% of global petroleum reserves but consumes 24% of the world's oil. Offshore territories and public lands like ANWR that don't allow drilling may contain up to 75 billion barrels of oil, according to the EIA. That may sound like a lot, but it's not enough to make a significant difference in a world where global oil demand is expected to rise 30% by 2030, to nearly 120 million barrels a day."

http://www.time.com/time/business/articl...

Answer 2

dude, it is not the oil company's, this is an economic warfare by hidden middle men taking sides, this will crush the greenback and the euro will rise, this is to kill the USA economy, it has a ripple effect on the world because the greenback is most popular, well not for much longer, and until that happens the world will not see the price drop

Answer 3

You can trust the CEO's of the oil companies like the CEO's of the tobacco companies.

Answer 4

I don't understand why the price of oil is up. It's just these oil companies getting rich off of everyone..that's what it amounts to. I don't get why doesn't our president do something to help us.

I just heard on TV that oil is only going on up. That by 2010 it will be 7.00 a gallon.

So I don't think we should believe a thing they say...

Answer 5

Nope, I don't believe them.  They just want to increase their profits more, since although demand is down in the U.S., it doesn't matter anymore because demand in the rest of the world is up and continues to rise.