Maybe the lower price has to do with a greater supply. Can you say NORTH DAKOTA?
Don’t forget Texas.
In the past ten years, North Dakota oil production has climbed 883 thousand barrels a day.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPND2&f=M
In the same ten years, Texas oil production has climbed by over 2 million barrels a day.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPTX2&f=M