Mere Threat of Drilling will bring down Oil Prices

Don M. Chance at IBD has an excellent response to those who ignorantly tell us that attempts to increase supply will have no effect on prices. It's simple enough that even guys like Paul Krugman can understand it:

"Certainly increased drilling will not bring an immediate increase in the
supply of oil. But many people, even so-called experts, believe that the effect
on the pump price would not be felt until the oil is actually at the pump,
possibly years later.

In fact, the price will fall well before the first hole is drilled.
Even the possibility of increased drilling will bring down the price of oil. It
already has.

Almost everyone knows that supply and demand determine price in a
market. But that knowledge seldom goes beyond understanding how supply and
demand themselves are determined.

The belief that the current quantities demanded and supplied are the
sole determinants of price misses an important point. Both current and expected
future demand and supply interact to determine the quantity demanded and
supplied in the current marketplace.

That is true because oil, and indeed almost everything else, is
storable."