This year, both major party candidates for president–Democrat Barack Obama and Republican John McCain–have expressed their willingness to open up areas of the United States to offshore oil drilling. While McCain has pursued this goal more aggressively, Democrats have supported the idea as shown by the passage of a bill in the US House of Representatives last week that lifted some restrictions on oil drilling in the United States’ outer continental shelf.
However, these efforts are likely to have little impact on short-term oil production and prices. According to an analysis from the Center for Economic and Policy Research, the Energy Information Administration (EIA) has concluded that it would be close to a decade before any oil can be extracted from the coastal areas in question. Similarly, the 200,000 barrels per day that could be extracted would be too small to have an impact on oil prices. Drilling in the Arctic National Wildlife Refuge (ANWR)–which is advocated by McCain’s running mate Sarah Palin–would reduce prices by only five cents per gallon.
The Center for Economic and Policy Research says that reducing oil consumption would have a far more substantial impact on oil prices. It argues that the Energy Independence and Security Act of 2007 and its increase in CAFE standards will decrease oil dependency by an amount fourteen times greater than any comprehensive offshore drilling effort and will be four times greater than drilling in ANWR.
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- Running on Empty: Media & the Oil Crisis
