Interesting Congressional Budget Office report.
CBO says: "Drill, baby, drill!" isn't the answer...
Today, CBO released a report, Energy Security in the United States, which describes the current situation and evaluates a variety of options to increase US energy security. A significant conclusion of the report is that increasing domestic oil supply won't do much to shield the country from shocks in the international market. They say:
"Policies that promoted greater production of oil in the United States would probably not protect U.S. consumers from sudden worldwide increases in oil prices stemming from supply disruptions elsewhere in the world, even if increased production lowered the world price of oil on an ongoing basis. In fact, such lower prices would encourage greater use of oil, thus making consumers more vulnerable to increases in oil prices. Even if the United States increased production and became a net exporter of oil, U.S. consumers would still be exposed to gasoline prices that rose and fell in response to disruptions around the world."

The report implicitly supports passage of the Open Fuel Standard Act (HR1687) when it says that: Policies that promote flexibility in the fuels that households and businesses use for transportation would reduce their vulnerability to changes in oil prices. Thus, more drilling isn't the answer. The answer lies in creating a competitive market for transportation fuels.
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