But if the total cost of producing oil in the new Gulf of Mexico fields is $40/bbl, the cost in Middle East fields is $20/bbl and the price is $50/bbl; opening up new GoM areas will get more bidders, exploration and production for us.
The Middle East isn't exactly open to producers like it is here. Agreeing to produce oil in an OPEC country runs other risks, such as being scaled back due to OPEC production limits, just as they are forcing upon them today.
As long as there is money to be made here, we will get companies interested in producing the oil. Just because someone else has a higher profit margin, doesn't prevent expansion elsewhere.
That is why deep water and oil sands had been growing for years, even though it was cheaper in other places.
My comments were in response to post 10 which I disagree with. This was before you got sucked in to the discussion. Those who think simply opening up drilling by itself makes us oil independent are delusional and naive. thanks