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Saudis Increase Production; Oil Price Barely Flinches

There have been all sorts of solutions to the current “problem” of high oil prices: cracking into the into the Alaskan National Wildlife Refuge, exploiting the massive deposits of oil shale in the Rockies, paying Canada to increase production from its oil sands, and the ever-popular repeal of the 18-cent gas tax.

Well, Saudi Arabia went and saved everyone a whole lot of time, effort, and carbon emissions yesterday by announcing it would bump up its daily oil output this July by some 200,000 barrels. And today the world oil market reacted—by dropping less than 1%.

While it may have shocked a few million Facebook users, the lack of reaction came as no surprise to economists, who point the finger at American inflation and over-consumption for current prices. I think that maybe it’s time to turn away from supply-based solutions, and start focusing on fixing our own unsustainable habits.

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