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.
3. What Newt told Fox News: “I have a $2.50 goal as a maximum price. … we outline step by step how to do it. I think it is doable.”  Doable?!  $2.50 for gas means $1.50 for oil (see the Iron Rule). And $1.50 times 42 gallons/barrel = $63/barrel — a little over half what it costs now. And Newt will make that the maximum price of oil for the world from now on. Sure thing, Newt.

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:  The price of gas equals the world price of oil (per gallon) + $1.00. (Strange, but true for 30 years.)