MYTH: Media Present U.S. Oil Production As A Solution To High Gas Prices. ..........
In recent months, all of the broadcast and cable news networks except NBC mentioned expanded domestic drilling as a factor that has or would lower gasoline prices. [Media Matters, 3/20/12] _________________________________________________________________________________________________________________________
Fox News incessantly promotes drilling as a solution to gas price spikes. For instance, Fox contributor *** Morris said that "the United States now has the capacity so to increase the global supply of oil that we can, in the future, completely control gas and oil prices" and that "the United States can affect this price and the answer is 'drill, baby drill.'" [Fox News, The O'Reilly Factor, 3/16/12, via Nexis] __________________________________________________________________________________________________________________________
Experts: Changes In U.S. Production Are Small Factor Given Scale Of Global Oil Market. At least 20 economists and energy experts from across the ideological spectrum have explained that increasing U.S. oil production will not prevent gas price spikes because oil is priced on a global market, which is influenced by much larger factors like growing demand from Asia and geopolitical conflicts. [Media Matters, 3/22/12] ________________________________________________________________________________________________________________________
Survey Of Economists Confirms That U.S. Policy Doesn't Dictate Gasoline Prices. In a survey of economists by the Chicago Booth School of Business, not one disagreed with the statement that "Changes in U.S. gasoline prices over the past 10 years have predominantly been due to market factors rather than U.S. federal economic or energy policies." [Chicago Booth School of Business, 3/19/11] ______________________________________________________________________________________________________________________
Statistical Analysis Shows No Correlation Between Gasoline Prices And U.S. Oil Production. An Associated Press analysis of 36 years of data "shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump," underscoring the fact that any impact on price from changes in U.S. oil production is swamped by the more dominant factors influencing the oil market. [Associated Press, 3/21/12] ______________________________________________________________________________________________________________________
FACT: Keystone XL Would Have Little To No Impact On Gas Prices. ...................................................
MYTH: Media Tie Keystone XL Pipeline To Gasoline Prices. _______________________________________________________________________________________________________________________
Fox News has repeatedly claimed Keystone XL would lower gasoline prices. For instance, Fox News anchor Bill Hemmer said: "So long as gasoline is getting higher, that's all the Republicans have to say is 'Keystone.'" [Media Matters, 2/23/12] ______________________________________________________________________________________________________________________
All the broadcast and cable news networks have tied Keystone XL to gas prices in the last few months. [Media Matters, 3/20/12] .....
Several major print outlets and NPR have uncritically reported the claim that the Keystone XL pipeline would lower gas prices. [New York Times, 2/1/12] ________________________________________________________________________________________________________________________
Economists And Energy Analysts Say KXL Would Have An Imperceptible Effect On Gasoline Prices. Energy experts Severin Borenstein, Andrew Leach, Michael Levi, and Chris Lafakis have each stated that the pipeline would have little if any impact on gasoline prices. Borenstein, for instance, said the pipeline would "bring additional oil to the world market, starting around 2020. The effect on oil prices then will be miniscule, the effect in the next couple years nonexistent." Even Ray Perryman, the economist hired by TransCanada to assess the economic benefits of the pipeline, said the effect would be "modest" and likely "swamped by the day-to-day factors that impact market prices." [Media Matters, 2/23/12] _______________________________________________________________________________________________________________________
FactCheck.org: "There's Nothing To Prevent More Canadian Oil From Coming Into The U.S. Right Now." In a post criticizing a political ad which claimed that President Obama "blocked the Keystone pipeline, so we will all pay more at the pump," FactCheck.org noted: ...............................................
[T]here's nothing to prevent more Canadian oil from coming into the U.S. right now, should Canada be able and willing to send it. Existing cross-border pipelines already have much more capacity than they are using. Those pipelines have the capacity to bring in more than 1 million barrels per day of additional Canadian oil, according to a study produced for the U.S. State Department by EnSys Energy & Systems Inc. of Lexington, Mass., in December 2010. And the study predicts that surplus capacity will persist at least until the year 2020, even if the Keystone is never built (see table 3-4). The 700,000 barrels that McConnell refers to is the additional surplus capacity that the Keystone's northern leg would provide. _____________________________________________________________________________________________________________________
Some Analysts Say The Pipeline Could Actually Increase Gas Prices In Some Parts Of The Country. Because the Southern portion of the Keystone XL pipeline would relieve the current glut of oil in the Midwest, some energy analysts believe it would raise gasoline prices there. [Media Matters, 2/23/12]