Paul Krugman: Natural Born Drillers

To be a modern Republican in good standing, you have to believe — or pretend to believe — in two miracle cures for whatever ails the economy: more tax cuts for the rich and more drilling for oil. And with prices at the pump on the rise, so is the chant of “Drill, baby, drill.” More and more, Republicans are telling us that gasoline would be cheap and jobs plentiful if only we would stop protecting the environment and let energy companies do whatever they want.

Read the whole story at The New York Times

Comments

[MajorKong]

05:29 PM on 03/26/2012

Saudi Arabia is the "swing producer".

That's like being the guy at the poker table with the huge stack of chips that gets to pretty much run the game.

Unless you're the swing producer, your ability to influence the price of the commodity is limited.

[baxtron]

04:30 PM on 03/19/2012

in response to hmmmmmmmmm.

http://www.foxbusiness.com/news/2012/03/06/eia-us-2012-oil-demand-seen-at-15-year-low-1877-million-bd/

[mistykane]

08:18 PM on 03/19/2012

Oil demand in the rest of the world is way up. Oil prices are based on global supply and demand, U.S. supply and demand just adds or subtracts from it.
In 1980, the U.S. produced 9.8 million barrels per day. Today it's down to 5.83 million barrels per day. U.S. demand has decreased from 20 million barrels per day to 19.7 million barrels per day.
Alternative energies are good at bringing down demand (slightly), but only drilling will increase supply.

[baxtron]

09:06 AM on 03/20/2012

so there is no market in US to sell oil drilled in US?

[MajorKong]

05:23 PM on 03/26/2012

Unfortunately reduced demand in the US is offset by increased demand from China and India.

Keep in mind that oil is priced and sold on the world market.

[baxtron]

05:39 PM on 03/26/2012

no loyalty to the US then? ok. Saudis don't pay this much for gasoline. they don't export. if we drill enough to lower our imports and demand is flat, then prices should come down. the sale on the world market is a choice. Exxon can strike a deal with Fed govt.

[dbw53022]

08:13 AM on 03/19/2012

The best line in the piece was the last one...

"And intellectual bankruptcy, I’m sorry to say, is a problem that no amount of drilling and fracking can solve."

[iam99]

02:24 AM on 03/19/2012

It can't be denied that jobs will increase with more drilling. Jobs in water purification, haz mat response teams, health care for industry workers and unwitting victims, clean water delivery, animal rescue, pediatric health workers (for when schools are sited close to gas/benzene wells), air filtration systems installers, researchers and their analysts, spin doctors, and on and on.

[foonpub]

09:54 PM on 03/18/2012

hmmmm???? http://www.usgs.gov/newsroom/article.asp?ID=1911

[Grouchy Larry]

07:55 PM on 03/18/2012

According to the Bureau of Labor Statistics, in September 2009, oil drilling accounted for just over 63,000 jobs nationally. So if we drill everywhere and double, or even multiply by ten the current number of jobs, that's still no where near enough to overcome the 12.3 million job deficit we have. http://economix.blogs.nytimes.com/2011/07/29/jobs-deficit-investment-deficit-fiscal-deficit/

Selling the national soul to big oil will not save the country from the 50 years of bad management we've suffered at the hands of the military/industrial/financial complex. Advocates of rescinding all environmental and other restrictions from the corporate class are more than happy to tell us otherwise, syncophants and toadies all.

[Joseph Veverka]

03:19 PM on 03/18/2012

Drilling isn't the solution to higher oil prices. According to an article by Global Research oil prices are inflated by speculation. And guess who is knee deep in oil future options, Goldman Sachs and Morgan Stanley of course. Apparently they're not done screwing up our economy. What happens when someone buys all the oil futures they can get a hold of, the price per barrel goes up. heck it out. http://www.globalresearch.ca/index.php?aid=8878&context=va

[Estonia-Firster]

02:52 PM on 03/18/2012

Krugman is cherry-picking. Its true that oil is a global market. Still, increased domestic production would at least provide modest downward price pressure globally. Also, increased domestic production would make this country less vulnerable to global oil shocks.

He also fails to mention that oil companies are now exporting refined oil products like gasoline and diesel. That does create jobs and offsets somewhat our current account deficit.

Increased domestic oil production is good for the economy. Anyone who denies it is just a denier of obvious facts.

Something that has caused increased oil prices that Krugman does not mention is that the FED has drastically increased the money supply. That makes all world-wide traded commodities more expensive.

[Joseph Veverka]

03:30 PM on 03/18/2012

Oil prices are inflated by speculators.Read the whole article at this link, http://www.globalresearch.ca/index.php?aid=8878&context=va then come back a wiser man. Be sure to pass the link on.

[Estonia-Firster]

09:10 PM on 03/18/2012

I read your link. It tries to say that exchanges control markets. Exchanges are just that, exchanges. The traders are using their services to pair with those willing to take the opposite side of the trade. They do not control prices. Actually, if there were no speculators, it would make it easier for big sellers (oil companies and sovereign exporters) or big buyers (refiners and sovereigns) to collude and control the market. The more buyers and sellers, the harder it is to control the market. Its just common sense.

[Estonia-Firster]

08:54 PM on 03/18/2012

I did not say there was no glut.

It is you who is slow, or cannot read.

My point is, glut is good. It allows us to export and reduces the current account deficit and provides jobs. A glut will not appreciably reduce the price of gasoline though, because the excess is exported. Incredibly, so-called conservative commentators like Bill O'Reilly and Lou Dobbs advocate restricting exports of refined oil products. They don't even realize they want to do exactly what Argentina's Ms Kirchner did when she prohibited wheat exports to prevent higher food prices. Of course, it just pissed off farmers who were finally going to make a decent living, and caused a reduction in the domestic production of wheat. Prices did not come down at all.

[Estonia-Firster]

09:19 PM on 03/18/2012

For some reason my posts are being moderated and delayed. You may get two similar posts. Sorry. I'm new to the Huffington post.

[sarabono]

12:53 PM on 03/18/2012

The last time I looked, my Honda Fit (purchased with the help of Cash for Clunkers Money), did not run well using electricity from windmills or heat from my solar collectors (which are used to heat water for my home).

Krugman, your all wet.

[Joseph Veverka]

03:33 PM on 03/18/2012

He is not all wet he is not in the loop of the Goldman Sachs speculators. Apparently they found othe3r ways to screw up the economy. Be brave check it out http://www.globalresearch.ca/index.php?aid=8878&context=va

[iknowscottyknows]

11:49 AM on 03/18/2012

Switch grass, people, switch grass!

Whatever you're smokin' has given you hateful delusions about oil.

[sarabono]

12:54 PM on 03/18/2012

I thought algae was the new thing?

[Joseph Veverka]

03:38 PM on 03/18/2012

Too bad BS can't be used to power our stuff then we could tap into the bull coming out of congress to run the world. Here is something the congress doesn't want you to know, oil prices are inflated by 60%. Thanks to our friends at Goldman Sachs and Morgan Stanley. http://www.globalresearch.ca/index.php?aid=8878&context=va

[Conservative PitBull]

11:09 AM on 03/18/2012

Go ahead and tell all those Americans drilling in their new job up in North Dakota. I double dare ya.

[nothingchanges]

10:34 AM on 03/18/2012

I think the Democratic party should issue "Dinosaur hunting licenses" as a fund raiser.

"Help America break our addiction to foreign oil, Buy a Dinosaur hunting license. Shoot as many dinosaurs as you can, then bury them in your back yard, in a few thousand years, you can have your own oil well, and get rich, with the added bonus of helping America become energy independent and boosting our economy"

Facetious?........................... Totally

and having just as basis in reality............. as "Drill baby Drill".

[chris hatala]

07:45 AM on 03/18/2012

The tpubs are the mouthpiece of the Koch brothers.

[simpleperson]

10:30 AM on 03/18/2012

...and this talking point is brought to you by Mr Soros

[Unsui]

01:03 PM on 03/18/2012

I point to Scott Walker as example #1 that Chris is correct.

[Joe Dallas]

07:06 AM on 03/18/2012

“The numerous errors, misstatements, misrepresentations, distortions and omissions in his article shows the contempt he has for the intelligence of his intended audience.

For starters:
Krugman fails to mention the perverse effect ethanol has on gasoline prices
Krugman states that oil and gas production is up - fails to mention that it only up on private lands. Down significantly on government owned properties.
Krugman brags about gas production being up, hoping that no one notices that natural gas is not used in the production of gasoline.
Krugman fails to mention the effect every spring on gas prices when the refineries shift from winter blends of gas to summer blends of gas.
Krugman does mention the boom in the use of fracturing - implying that that it has led to an increase in oil production, yet at the same time showing that gasoline prices have risen hoping that his gullible audience does not know that fracturing is used almost exclusively in gas production and has very limited use in oil production.
Krugman fails to mention that he is even arguing against his own economic textbook.

Krugman is relying on the ignorance of his audience.”

[RedneckDem]

10:16 AM on 03/18/2012

So...we're supposed to believe your half answers and obfuscation, and take that as you being "all knowing"? Bwahahahhahaha

You can surely pick out some inaccuracies in his article, but his basics are sound while Most of your whiny post is straight off of an Oil company lobbying websites.

[Joe Dallas]

11:51 AM on 03/18/2012

If the basics of his article was correct, then he would not need to put forth some many distortions, sleight of hand arguments and misrepresentations. The fact that he put so many distortions in his article is quite informative of the validity of his argument. The fact that so few of those on the left are buying his claims, shows the contempt krugman has for the intellectual capacity of his audience.

[Joseph Veverka]

04:22 PM on 03/18/2012

Since you like facts here are some more
according to Global Research the price of oil is inflated by 60%.

Goldman Sachs and Morgan Stanley are big players in oil futures, high demand equal higher prices at the pump. Who would have guessed.

Congress De-regulated reporting for EU oil future sales in the twilight of the Bush administration.

so there are no records of who is speculating
so when your house rep says they did know ...they know
so when the senators say they don't know how to lower oil prices ...they know

And here is the link http://www.globalresearch.ca/index.php?aid=8878&context=va

[sarabono]

12:55 AM on 03/18/2012

Is Krugman a Political Shill ?

[RMorr2002]

08:37 AM on 03/19/2012

Is the Pope Catholic?