Expanding crude oil production did help lower gas prices. Nicolas Loris writes:
When gas prices topped $4 per gallon in May 2011, President Barack Obama said, “We can’t just drill our way out of the problem.” […]
More than seven years later, human ingenuity, technological innovation, and the power of the free market have proven him wrong. To the benefit of American families across the country, the United States is now the largest global producer of crude oil.
According to a report from the federal government’s Energy Information Administration this week, U.S. crude oil production surpassed that of Saudi Arabia and Russia. When Obama made his statement in May 2011, U.S. monthly production was 174 million barrels (5.67 million barrels per day). In June 2018, monthly production stood at 320.23 million barrels (10.67 million barrels per day). […]
Domestic extraction has lowered gas prices for millions of drivers and saved them hundreds of dollars a year at the pump. A number of factors contribute to the price of gasoline, but crude oil is the largest.
In 2017, crude prices made up 50 percent of the price of gas, with federal and state taxes (19 percent), distributing and marketing (17 percent), and refining (14 percent) accounting for the rest. Over the past decade, crude oil accounted for 61 percent of the total cost of a gallon of gas.
[Nicolas Loris, “Obama Was Wrong on Oil. We Did ‘Drill Our Way Out of the Problem.’” The Daily Signal, September 14]
