Bachmann's Plan for $2 Gas is a Dry Hole.

I have to be careful when I write about Michele Bachmann and energy policy. Her naivete makes me sarcastic. This response led to my story about her wanting to bring back leaded gasoline to save the domestic lead industry.

Turns out my spoof was a little too credible and a Newsday columnist reported it as fact.

Now Rep. Bachmann says her plan to open up more domestic drilling will bring our gas prices back down to $2/gallon. Not even drilling, just saying we're going to drill will scare down the price of crude. Her "No More Excuses Energy Act" would increase the nation's oil refining capacity and open up drilling in Alaska's Arctic National Wildlife Refuge (ANWR).

News Cut already has a good discussion going on the topic, so I will refer you there and just add a couple points of my own.

Commenter GregS has a number of posts in support of Bachmann's proposed bill, including this summary of his position on how increased domestic drilling will bring down the global and domestic cost of crude. It hinges on increased supply by increasing our production by two million barrels within a few years.

Here's the problem with that reasoning.

1. Global oil consumption in 2007 grew at a rate of 1.1 million barrels per day. If the U.S. could achieve those production rates, it would barely add enough to keep up with growing demand.
2. Oil-rich countries like Saudi Arabia are producing at a certain level because it's profitable for them, not because they lack the capacity. If the U.S. were to bring more crude to market, the Saudis and other producers could choose to throttle back production to maintain the overall supply — and the price.
3. Announcing our intent to drill in ANWR — where actual production would still be years away — would have far less effect on prices than, say, the Saudis announcing they will increase production, which they can do quickly.Last week, they announced their intent to increase supply by 200,000 barrels a day from June to July. They'd also increased production in May by 300,000 barrels. The price of light sweet crude for July delivery dropped 25 cents a barrel today after coming off a record high.

I'm sorry, but going to the Heritage-addled mind of Rep. Bachmann for energy policy ideas is like going to McDonald's to buy bread.