Summer is approaching and gas prices are climbing towards (and in some cases over) $4 per gallon. Must be time for the renewed calls for more domestic oil drilling. The problem is that domestic drilling will not reduce the price at the pump. Actually, that is a lie. It will reduce the price at the pump by $0.03 per gallon – yes, you read that right – 3¢ per gallon.
According to the US Energy Information Administration, if we drill ALL of our accessible oil in the Outer Continental Shelf, it will reduce the price at the pump by 3¢ per gallon by 2030. So in 19 years you’ll reap the 3¢ per gallon benefit at the gas station. You can read the report here.
You can also read a more detailed and eloquent discussion on high oil and gasoline prices by Senator Jeff Bingaman who chairs the US Senate Committee on Energy & Natural Resources here.