Earlier this week, Director of BOEMRE, Michael Bromwich, claimed that increasing energy exploration and production in the U.S., the world's third largest oil producing nation, "would not have a material effect on gas prices." Apparently unaware of the principle of supply and demand, Bromwich claimed that "you can't drill your way to lower oil prices."
President Obama disagrees. Currently, the President admits that he is in talks "with the major oil producers like Saudi Arabia to let them know that it's not going to be good for them if our economy is hobbled because of high oil prices." The President obviously believes that increasing oil output from the world's major oil producers would decrease the price of oil. Unfortunately, he does not consider the United States to be one of those major producers.
In response to President Obama's statements, Dan Kish, vice president of policy at the Institute for Energy Research, issued the following statement:
"The President now says his administration is pushing major oil producers to increase oil output in an effort to lower prices. What he really needs is to have someone tell the government of the world's 3rd largest oil producer to boost output. In case he is unaware, that oil producer is the United States."
"He could do that at his next cabinet meeting by telling EPA to stop holding up Shell's drilling in Alaska and by telling Secretary Salazar to stop closing access to our nation's energy supplies, which the Congressional Research Service says are larger than any country on earth."
"The President is beginning to look like the Ugly American in his attempts to point the finger of blame anywhere but his record, which includes seeking higher taxes on energy and stopping energy production wherever possible. It requires a suspension of disbelief to accept his protests about higher energy prices when that is his policy. His chickens are coming home to roost."
The Institute for Energy Research (IER) is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. IER maintains that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.
