How come US produced oil is the same price as foreign oil?

That evil cartel OPEC has pushed up prices - but how come US producers don't sell the oil at a 'fair' price. Looks to me like US oil producers are quietly filling their pockets as they supply about a quarter of US oil.





If Alaska is drilled, do you think the oil companies will sell at a 'fair ' price or an OPEC price?How come US produced oil is the same price as foreign oil?
You have it in one, profiteering!How come US produced oil is the same price as foreign oil?
Wow, ignorance is truly dangerous.


What is a ';fair'; price? Oil, like any commodity, is not selectively sold. The price is what someone is willing to pay for it. It is the price at which supply meets demand (a.k.a. the market clearing price). Oil is a global commodity so the price is set by the global demand relative to the supply (or more correctly the expected supply), not by some oil execs or the president of OPEC.





Imagine a scenario: You are hired by a family that owns an apple orchard to sell their apples. The demand for apples goes up because the county fair opens up nearby. Would you sell your apples at a different price to the locals than you would to those that come from further away? I'd imagine not, because if you did the family would fire you and hire someone else that will sell the apples at the going rate. The same goes for the oil company execs. If they tried to sell their oil at a lower price they would be fired by the board of directors and shareholders (and would be held criminally liable for failure to fulfill their fudiciary duty).





I work for a domestic oil company. No company, group of companies or even OPEC itself sets the price of oil. The market does that on its own. Want proof? Remember 1997-1998 when oil was at $12/Bbl and gas at $0.80/gallon? Do you think OPEC/Oil Companies decided to just be generous and essentially give it away? Nope. The market did that (caused by a surge in supply combined with a economic crisis in Asia).





If ANWR (Artic National Wildlife Refuge) is drilled, it will bring oil prices down in the long run by increasing supply faster than the increase in demand. It's that simple.





The reason gas in Venezuela is sold for so cheap is that it is subsidized by their government. It costs more to refine the oil than what the charge in sales. I lived in Venezuela for 2 years, the gas there is excessively pollutive and is damaging to car engines.
We're in the final days of the Bush (translation: ';BIG OIL';) administration.


They've got us in thumbscrews trying to break the will of the American people to not drill in AK or off-shore. He's on tv right now telling us to write our congressmen to get it opened up.


This is what it's all about.
OPEC again.Chavez doesn't even screw his own people like our guys do. Last I heard gas was .12cents a gallon in Venezuela.
Just go out and buy a bike...problem solved. No fuel required.

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