The US gets 40% of its oil from the US. 20% from Venezuela. 15% from Canada. 13% from the Persian Gulf. 10% from Nigeria. As of 2012. However, crude oil is fungible, which means we buy it from the oil market, *not* directly from its producers. And the market buys oil from whoever sells the highest quality oil (light, lots of volatile molecules; and sweet, low sulfur) at the cheapest price.
However, this is strongly changing, due to fracking.
But, ironically enough, even if the US produces a lot more oil, it will do so cheaply enough that the oil will be *exported* into the oil market, as it will command better prices there than domestically.
All this means is that we will run a lower trade deficit, or even a surplus. Surplus. Gee, when was the last time you heard that word about the US economy?
I don't understand why people how understand the concept of a fungible commodity think we will eventually be paying less than market price while taking into account transportation costs.
Tell me, which oil producers sell there oil at below market prices?
Nevermind...
Of course US produced fuels will be sold at market prices...as it should be.
The significant increase in supply and production capacity (refilling supply) will drive down prices. It will drive it down to the point that oil producers overall receive a competitive profit margin above production cost.
The high cost fuel producers will be driven out of the business, because they can no longer produce oil profitably. Nobody wants to invest their capital in a business that can’t operate with a profit (other than uncle sam).
It makes no difference whether oil/gas produced here is exported or consumed here. with the possible exception that there are additional costs associated with shipping oil for export.
If we produce a significant amount of the world’s energy, it will give all our industries a global competitive advantage in pricing. - because our domestic (without export costs) energy prices will be lower than those that purchase our exported energy.
Domestic energy production has the potential to pull the USA out of this rotten economy.
The White House is the biggest barrier to this transformation.
So, why is it even legal to do oil business with the likes of the murdering moslems and chicoms?
Ska-rew the "global market".