With gas prices on the rise, the blame game is in full swing. Some in the media and in the government are saying increased drilling will lower gas prices. It turns out this isn’t the first time we have heard this argument, and liberals and conservatives alike agree that it is just not true.
But don’t take my word for it, listen to Fox News!
They are right! No amount of drilling here in the United States can lower the price of a gallon of gas. We just aren’t a big enough supplier, though we’re number one when it comes to demand.
Try as we may, we will never control supply – we can, however, decrease demand. Improving efficiency, promoting conservation, and transitioning to renewable sources of energy like offshore wind are the only ways to achieve a secure and affordable energy future. Using less is the only way to lower the price. Just ask Bill O.
In 2008, he gave his viewers sound advice: “If Americans want lower gas prices, cut back. Sell those SUV’s. Ride a bike when you can. If every one of us bought 10% less, prices would fall fast.”
Andy Sharpless is the CEO at Oceana.
What will lower your gas prices at the pump?
If you were to listen to national politicians and the marketing of the oil and gas industry, they would tell you that increased domestic drilling will lower your gas prices – and that tax breaks for oil companies will help get us there.
But this simply isn’t true, and it’s been proven time and time again. Oil is a global commodity hunted and extracted by multinational corporations who will sell the oil to the highest bidder, not simply to the citizens of the country where the oil was found. What’s more, the U.S. is a relatively oil-poor country – estimated to have 2 percent of world oil reserves – so even extracting all its oil resources will affect pump prices only by pennies, and will take a decade to be realized.
The oil industry is currently enjoying $4 billion a year in tax breaks from the U.S. government. Surging profits this year for the industry – up 74 percent to more than $100 billion – show that it could easily pay its fair share of taxes. Even if we weren’t currently having a national conversation about balancing the federal budget, this policy is not sensible.
So it was with pleasure last week that I stood outside the U.S. Capitol along with five U.S. senators, six representatives and the Sierra Club to speak out against tax subsidies for oil companies.
By ending billions in tax breaks for oil companies, the U.S. government will protect American taxpayers as well as our beaches, paving the way for a clean energy future.
We'll continue to fight for this crucial change. Your support makes it possible.
Andy Sharpless is the CEO of Oceana; this post also appeared on Politico.
Why do we take terrible risks to drill for oil in the Gulf of Mexico and elsewhere along our coasts?
Most people would say we drill to protect ourselves from big fluctuations in the price of a gallon of gas that are caused by the major upheavals in the Middle East. Look at this chart (data from the Energy Information Administration):
Their argument is that the more oil we can produce domestically, the lower the price we’ll pay at the pump. It’s not that they like the sight of oil wells off our beaches. The main reason they are doing so is they think it will save them money – especially as gas prices approached $4 a gallon recently.
This idea is not only intuitively appealing, it is repeatedly, and unambiguously, promoted by important government officials from both parties. Sen. Mary Landrieu (D-La) defended new legislation that would expand offshore oil drilling, saying “this bill would do more to lower gas prices at the pump than any other plan.” Sarah Palin criticized President Barack Obama, “His war on domestic oil and gas exploration and production has caused us pain at the pump.”
For those of us who had been holding out hope for a comprehensive bill that would curb U.S. climate emissions and promote renewable energy, disappointment and frustration have officially set in.
The Senate has scrapped plans for an attempt to push through a climate bill this summer.
This is especially disturbing because the proposals being considered were designed to meet the industry halfway by using market-based solutions that allow companies to reduce emissions in the way that they believe is most cost-effective. This approach diverges from the approaches used before in the Clean Water and Clean Air Acts, for example. But industry still shot it down.
Sadly, this is a classic example of “political reality” versus “real reality”.
The Deepwater Drilling Disaster continues without resolution, as the first reports of sea turtles washing up on shore are starting to trickle in, and local fishermen are reluctantly accepting jobs working as cleanup crew for the company that has ruined their livelihoods.
As the oil continues to gush from Deepwater’s broken pipe at rates that cannot be accurately determined, we are looking at an oil disaster that will surpass Exxon Valdez in a matter of weeks, if it hasn’t already.
But this tragedy has galvanized opposition to offshore drilling.
Two notable developments have taken place this week already. On Tuesday, I was honored to speak to press in the shadow of the Capitol alongside Senators Bill Nelson, Frank Lautenberg and Robert Menendez, as well as the executive directors of the Sierra Club and Environment America.
On Sunday, amid performances by the Roots, Passion Pit and John Legend, Oceana spokeswimmer Aaron Peirsol spoke at the Earth Day Climate Rally on the National Mall here in Washington.
“Ocean acidification is a real threat, as is overfishing,” he told the crowd. “New drilling must be forestalled while other invaluable, sustainable alternatives such as wind energy adopted. Today, I'm helping here by speaking and partnering with the ocean conservation group Oceana.
Together, we created Race for the Oceans, an open water swimming event that raises money and awareness toward ocean conservation. We also created Racefortheoceans.org, an online forum for swimmers and conservationists alike.”
Rachel Maddow, known for her incisive take on American politics, is also, it seems, a fan of sea turtles. In a "Moment of Geek" segment from her show last week, she showed a video of 82 green sea turtle hatchlings at Sea World in San Diego. "All of the world's species of sea turtle are on the endangered list, so there being 82 new little ones in the world is sort of a big turtle-y deal." We couldn't agree more, Rachel. If that makes us geeks, then so be it.