US drilling regulator: 'You can't drill your way to lower oil prices'
 

Washington (Platts)--25Apr2011/342 pm EDT/1942 GMT

Michael Bromwich, the chief regulator for US offshore drilling, on Monday waded into Washington's growing debate about high oil prices, saying his agency's pace of reviewing oil and gas exploration plans has no relation to the rising cost of gasoline.

"Even if we permitted the hell out of everything tomorrow -- every pending permit, some permits that haven't even been filed yet -- it would not have a material effect on gas prices," Bromwich said. "That's the simple, clear reality."

High oil prices have started to become a top talking point among politicians in Washington as the national average for gasoline nears $4/gal ahead of the peak summer driving season.

Speaking at a Public Citizen event, Bromwich -- who heads the Bureau of Ocean Energy Management, Regulation and Enforcement -- said the administration of President Barack Obama has tried to make clear in recent weeks that high oil and gasoline prices reflect global trends.

"The problem is, not enough people are listening," Bromwich said. "You can't drill your way to lower oil prices. It's a world market. We have a very limited impact on that."

"The fact is that stepping up the rapidity with which we grant drilling permits -- applications to drill -- may make some people feel better, but it will not have a material affect on gas prices," he continued. "That is a fact. It's an economic fact."

--Meghan Gordon, meghan_gordon@platts.com

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