Paul Krugman is incensed over the GOP histrionics in Congress on offshore drilling. He is also very disappointed that a majority of Americans think that making drilling legal would lower gas prices in the short term.
I agree with Dr. Krugman, but I think he totally misses the mark by objecting to offshore drilling. There seems to be a dearth of discussion on why exactly we shouldn’t do it. I assume the strongest argument is environmental, but a casual look around the Texas and Louisiana coast doesn’t seem to support that. I have yet to be convinced of a significant environmental externality.
A lack of immediate relief to gasoline consumers is not an argument for not drilling. Fundamentally, I think the federal government does not have the authority to prevent drilling (the states are another story). But even if we leave that aside, a drilling ban needs to be justified by a clear and present danger not captured by markets. All I’m hearing right now is “the oil companies don’t need those concessions.” By what measure? Why not let the oil companies make that decision?
