The Drill-Baby-Drill Fallacy

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1. It was $1.00 under Clinton when drilling was lowest.
2. It was $3.30 when drilling peaked under Bush.
3. It was $3.90 with drilling sky high under Obama.

What's Wrong with the Drill-Baby-Drill Theory?

Newt's $2.50 gas for China⇒

1. It's only about US Oil Supply (drilling).
2. But supply and demand determine the price.

Here's What Happens Instead:

1. Demand for oil goes up (think, China, India and Japan).
2. The price of oil goes through the roof.
3. Big Oil smells profit and starts to drill like crazy.
   • Drilling is up when price is up, like the graph shows.
4. Drilling keeps the price about a nickle lower than "it would have been."
5. You get the nickle, Exxon gets $10 billion.

In a nut shell, here's the awful truth:

• China uses more, and Our gas price goes up.
• We use less and drill more.
• Exxon ships the extra gasoline to China! -- See for yourself.

zFact:  US drilling is 10% of half the story. We pump 10%. Demand is the other half.

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