Although offshore drilling certainly would lower the future price of oil, letter writer Mitchell Blatt ("If it takes 10 years to get oil to market, we'd best get started," Letters, July 10) misses an important point: If the future price declines, the current price will fall as well.
Prices signal the expected value and rarity of goods and services. If suppliers expect more prevalent oil in the future, they will conserve less. So more oil comes to market and the price falls, today.
Tuesday, July 15, 2008
Another Reason to Drill for Domestic Oil
Local fishwrapper takes another: