[wolfcreek]

Sorry but, oil is traded through a Global market at Global prices. It’s the same everywhere thanks to Globalization.

[ari-freedom]

a global market buchanan and liberals want to destroy

[Paleo Conservative]

Sorry but, oil is traded through a Global market at Global prices. It’s the same everywhere thanks to Globalization.

Unless we supply 100% of our oil and ban international trade in oil, US oil prices will be determined by global energy markets. Of course if we did only buy domestic oil, our energy prices would have to be much higher than the world prices.

[USFRIENDINVICTORIA]

I'm well aware that oil is a fungible commodity.

You should read Chapter 6 of NAFTA -- it was the prize that Reagan sought, and it was important enough that it enticed even W.J.Clinton to sign the deal. Here's a link:

http://www.sice.oas.org/Trade/NAFTA/chap-06.asp

In the absence of Chapter 6, Canada or Mexico could sell their energy products into their domestic market at far less than world prices. This is bad economics -- but, it's also a common practice amongst oil-rich nations. With NAFTA, we are required to offer oil (and other energy sources) to the U.S. at the domestic price. Therefore, our domestic price tends* to be the world price. I'm happy with this arrangement -- because it's good economics. There are a large number of Canadians (and, I suspect Mexicans too) who would rather be able to buy their fuel at a lower-than-world price.

* The energy products include electrical energy -- which is not a global commodity. Canada sells a large amount of hydro electric power to the U.S. at a much lower price than it would cost you to generate it yourselves. You could expect these prices to rise to "market" levels instantly upon ripping up NAFTA.