Seems a remarkably simplistic and ill-thought article – no consideration of transport, supply bottlenecks, refining capacity, regulation and boutique fuel requirements or even grade of crude (tar sands are somewhat more expensive to refine than light sweet crude). Looks a very poor piece.
People say more domestic drilling would lower the price of gas. The United States produces less than half of the oil we use domestically; the rest comes from other countries. If we produced more, the price would go down, or so it’s said. By that logic, producing all of our oil domestically should score us a hefty discount at the pump. If only there were a country that produced all of its oil, we could look to see how low gas prices could get.
Actually, there is such a country, and it’s not far away in the oil-rich Persian Gulf. It’s our neighbor to the north. Canada produces all of its own oil and has enough left over to export what it doesn’t need. Canada must have much lower gas prices. Exactly how cheap is gas for those lucky Canadian drivers?
Oh, wait. It turns out it’s not so cheap after all. The average gas price in Canada in 2011 was $3.42 (U.S. dollars) not including taxes. Our gas was $3.29 (also in U.S. dollars without taxes). So we in the U.S. actually paid less for gas than our Canadian neighbors even though we import more than half our gas and Canada drills all of its own.