Realizing that his popularity may decline as the price of gasoline rises, President Obama is barnstorming the country, emphatically insisting that drilling for more oil isn’t the cure for high gas prices and that wind and solar energy represent our energy future.
Republican presidential candidate Newt Gingrich recently challenged Obama, claiming that gas prices would fall to $2.50 per gallon or lower if he were president. Many Americans believe Gingrich when he says that repealing Obama’s anti-drilling policies would increase the supply of oil and push gas prices lower. In his weekly address on March 10, Obama disputed Gingrich’s assertion, arguing, “With only 2 percent of the world’s oil reserves, we can’t just drill our way to lower gas prices.”
One wonders how the president can make such a claim, given that natural gas companies are currently hurting because, in fact, they have drilled their way to lower natural gas prices. Surely this president does not believe that the law of supply and demand doesn’t apply to oil, too.
To the contrary, Obama concedes just that when he considers dipping into the Strategic Petroleum Reserve for no other reason than to lower gas prices in an election year.
When you think about President Obama’s antipathy for oil companies’ profits, you would think that he would be one of the most vocal supporters of more drilling. After all, increased production of oil would drive down prices and shrink profits. How deliciously ironic that Obama’s own anti-drilling policies are handing windfall profits to the very oil companies he rails against.
The president’s statement about America having only 2 percent of oil reserves is misleading. The size of our reserve is actually quite vast, but the percent of the world’s oil we have is far less important than the amount we produce. The United States accounts for at least 6 percent of global production of petroleum—a figure that would be significantly higher had President Obama’s party not been impeding and restricting domestic petroleum production for years.