Lowering gasoline prices

From Speculation and Oil Production: "As both theory and history attest, when the federal government makes policy announcements that promise an increase in domestic oil production, then the world price of oil drops immediately in response."

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So this price drop should eventually benefit us in lower gasoline prices? Liberal blogs seem convinced more domestic oil production will provide more export and profit selling on the world market for better prices, not changing a thing for fuel consumers. This logic seems to confound the laws of supply and demand as I understand them. How can we produce more, yet not affect the price at the pump? It seems rational, though, for me to sell where I can get the most for my product, which appears to leave the US consumer out in the cold as far as any local gasoline price reduction. Can you provide anything to improve my comprehension of this issue? Please. Don Graves Pittsburgh, PA

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