After Hurricane Katrina in 2005, the price of gasoline increased because of extensive damage to refineries on the Gulf Coast. How would an economist use supply-and-demand analysis to explain the increase in the price of gasoline in the United States right after Hurricane Katrina? And in the 2008 presidential campaign in the United States a major debate was the high price of gasoline and crude oil. The price of crude oil rose rapidly in 2007 and 2008, despite increases in production by Organization of Petroleum Exporting Countries (OPEC). Part of the reason is that the Chinese and Indian economies had been growing at very high rates. This growth has fueled demand for energy for industry and transportation. In addition, the rising incomes in these countries have increased the demand for automobiles and thus gasoline as more people in these countries can afford them. The Republicans argue that increased drilling in the offshore areas of the United States would increase the supply of oil and bring the price down. The price of gasoline would decrease as a result. Using supply and demand analysis, explain whether or not it is certain that the price of oil and therefore gasoline would fall if there were successful offshore drilling for oil in U.S. waters.