|
Republicans argue this emerging trend could be sped up if the administration opened more federal land, both onshore and offshore, to drilling. It's possible, but oil and gas companies do not have a shortage of new places to explore, so it's unclear just how much effect this would have, analysts say. Also, while domestic oil production from federal lands dipped in the aftermath of BP's Deepwater Horizon explosion and oil spill in 2010, oil production on federal lands is up since Obama took office. Lower imports and higher production help reduce the nation's yawning trade imbalance. And it helps protect the economy from high oil prices because more of the income from those higher prices flows to U.S. companies instead of foreign ones. But the U.S. economy won't ever be free from the effect of high oil prices. That's because oil and gasoline are crucial to the U.S. economy and the market for them is global. If turmoil in the Middle East disrupts oil production there, prices worldwide
-- including for drivers in the U.S. -- will rise, even if the U.S. gets little or no oil from the Middle East. Rising gasoline prices hurt the economy by taking spending money out of consumers' wallets, and consumer spending accounts for 70 percent of the U.S. economy.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor