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“Look at it this way as an example. If we were able to suddenly, magically have all this oil available to us in 7 days time, to draw from at will, what do you suppose would happen to world wide oil prices when the news hit that America would no longer be importing oil?”

But what exactly would force the oil companies to sell that product in the U.S. if, say, China, were willing to pay more?

I do realize that more product would likely force prices down (although we’re not exactly out of oil today and yet prices skyrocket), but oil companies are free to sell wherever they want.

But what exactly would force the oil companies to sell that product in the U.S. if, say, China, were willing to pay more?

I do realize that more product would likely force prices down (although we’re not exactly out of oil today and yet prices skyrocket), but oil companies are free to sell wherever they want.

The reality is: Right now the US imports 2/3 of its oil consumption. More domestic production would for the foreseeable time only equal less imports. So even if said companies sold their oil exclusively to US customers, the price would still be dictated by the world market.

Right now one of the major reasons for the high price of crude is that the difference between supply and demand is razor thin. Add to that the thought that pumping capacity is near limits and we have sky high prices. there is also a political factor that says due to the unrest in the world there may be an interruption in supply at any time. This also is said to add about $10-$15 to a bbl. By making another 12 MILLION bbl a day available (about what we import now)which would happen if we used OUR oil instead of importing it, that 12 million bbl would be up for bids and the supply would greatly exceed the demand. All the traders holding contracts for delivery of crude next month or 6 months or whenever at $125+- bbl would scramble to sell those contracts at any price to avoid having to pay that price for a product worth less then half due to the greatly increased supply. In the end it matters not whether we keep our oil here or sell it on the open market. The very fact the supply increases whether through our dumping more on the market or us taking less from the world wide market will cause a drop in prices.