Domestic Drilling or International: Is there really a difference?

For those who proclaim themselves to be patriots and lovers of America, the idea of domestic oil drilling sounds like something right up their alley.  What is unfortunate is how short sighted this initiative is. We, as a nation, have characterized ourselves as pioneers, trailblazers, inventors, and entrepreneurs. Domestic drilling will only encourage the continued use of antiquated technology of over 150 years old.  Just like many of the inventions of the 20^th and 21^st century, we didn't invent it until we saw a need for it.   Did the United States government keep throwing money into steam locomotive research after the combustion engine or the airplane was invented?  Did passenger train ticket prices go up after the invention of more efficient means of public transportation?  No!  However, we are now so focused on the false economics of domestic drilling that we don’t see the opportunities that could be created by lessening demand on total world oil and utilizing our pioneering spirit to invent efficient uses of our renewable resources.  We instead focus on the myths that eliminating foreign competition will increase jobs, lessen our dependency, and in some way boost our economy when, in fact, free trade economics says different.

Drilling for oil isn't even half the problem when it comes to production and supply for the US consumer.  The refining of that oil is a huge factor and what many don’t know is that the operable capacity of our refineries in the United States at almost 18 million barrels a day already.  That’s almost even with our usage of about 18.89 million barrels a day.   According to the drill domestic logic, if we were to drill domestically, that would decrease our imports of oil and we would create more jobs when the truth is that our refineries would maintain the same staff and just receive oil that came from a different place on this planet.

It is short sighted to think that domestic drilling will decrease our economic dependency on other countries. First of all, this doesn't have anything to do with dependency.  This is a world market with several different companies and hundreds of subsidiaries all fighting for a dollar.  A free market company always charges what the demand is no matter where the oil comes from.  The oil won’t spoil if kept in a warehouse, nor will the demand suddenly decrease because there is more oil domestically.  If we want to decrease dependency we must decrease consumption.  

The goal of any company, even big oil, is to drive the competition out of business.  The USA is the top consumer of oil in the world so the demand will continue to be high no matter where the competition is located.  One other interesting fact that most “Drill here, Drill now” supporters fail to notice is that the USA is actually exporting crude oil.  That’s right!  9% of our refining capacity is exported.  With all the demand for domestic oil, why would these companies be sending oil out of this country?  That is because these “free” companies are “free” to keep the prices as high as they want.  The real question is, why does anyone think these companies in the business of making money will try to find a way to demand less of it from you?  Our own department of energy has said after evaluating potential increases in domestic oil due to proposals on domestic drilling that “Because oil prices are determined on the international market, however, any impact on average… prices is expected to be insignificant.”  So if the changes are going to be insignificant then it certainly can't be considered a great boost to our economy.

It’s safe to say that the economy will not be suddenly revived by some black stuff coming out of the ground.  According to the US department of energy, even if the USA was at peak production in Arctic National Wildlife Refuge, the Outer Continental Shelf, and the Rocky Mountain states, that’s only about 1.2 million barrels a day.  Which, when tallied out, amounts for a 3 cent saving a gallon that wouldn't be seen by the consumer for about 10 years.  That’s a number we can all understand.  3 cents!  We have already established that the job growth wouldn't be highly effected by domestic drilling, so why continue to push the subject?

The myths will certainly survive but the truth will to. Domestic drilling does not increase jobs, lessen our dependency and boost our economy.  Any oil exec will tell you that with the speed in which the oil can be extracted, moved, refined, and distributed, it makes little difference on where the oil is dug up.  With the USA now at its lowest dependency rate of foreign oil since 1985, if we were to see some amazing drop in gas prices along with economic benefits, it would have happened already.  The truth is that the only way to decrease dependency on oil is by eliminating the need for it.  The quantity of the food in my home does not decrease my bodies need for it, much in the way the quantity of oil produced in our country doesn't decrease our demand for it.