If off-shore oil drilling is allowed how much can we expect to see the prices of gasoline drop?

all the articles in newsweek etc quote government experts who say an unmeasurable low amount.








.If off-shore oil drilling is allowed how much can we expect to see the prices of gasoline drop?
Well to begin with anyone that works for the gov't and is called an expert is anything but.


The mere approval of increased oil production will make opec increase production causing speculators to wince. A month ago Bush rescinded the presidential ban on offshore drilling and oil prices have been going down since. Gas prices lagged about 10-14 days. Of course the the group of 10 and the house members that stayed in the house demanding Pelosi open back up to have a vote on drilling has helped to keep speculators at bay.If off-shore oil drilling is allowed how much can we expect to see the prices of gasoline drop?
Over what time frame?








Offshore drilling will not likely lower gas prices. Instead it will slow the RISE of gas prices. Instead of $5 gas in five years we may be able to slow that increase to only $4.50.





The global demand for oil will outpace even extreme efforts at exploration and drilling. New discoveries peaked in the 1970's. Aside from short-term fluctuations gas has been rising since then.





There are an estimated 18 billion barrels of oil offshore (source: White House). Assuming we could extract it at a rate of 5 million barrels per day, That would add only about 5% to world supply. So assuming demand remains constant (which obviously it won't) we might expect a best case scenario of a 5% reduction in price of oil and gas. Which is about a reduction from $4 to $3.80 per gallon of gas.





Also, extraction of the 18 billion barrels of oil at a rate of 5 million barrels per day would last only about 8 years and then be empty. (do the math)





Hey JoeBob below, its ignorant to think Bush's comments had an effect on oil prices. Even the White House admits the drop is due to lower demand. US oil demand has dropped to the lowest level since 2003. That HUGE drop in demand is what has led to falling oil prices. But still, oil is about 60% higher than last year. Nice try.
The price of oil is set by the world trading community. No one is going to sell oil for less than they can make on the world market. If the offshore fields manage to extract it cheaply, they make money, you don't gain.





If you don't buy at their price, they will sell overseas. What are you going to do? The only alternative is to buy overseas.
The cost of offshore drilling and completion of wells will more likely increase the price of all Petroleum products.





Wait and see Mr. thumbs downer. How long have you worked in Oil and Gas ???
Not much. Those large drilling plants that they put out they cost A HELL OF A LOT in maintenance.





What really needs to be approved is drilling ON the mainland.