At current prices? No. Try to price it at $20 and you will have a heck of a shortage. Supply and demand are curves based on price, not a fixed amount.
Do we have refinery capacity to increase output production? If so, by how much?
Do you mean capacity to increase domestic oil production? Sure! We could nearly triple our domestic oil production before reaching our current refinery capacity. We would substitute that imported oil with our domestic oil if we reached that amount.
Who sets the price of crude?
The market. Most oil is not bought and sold over the NY stock exchange. Most oil used in refineries is long term contracts.
What is the average supply/storage of crude onhand at any given time?
The US, outside of the strategic reserve, typically has 20~30 day supply in commercial stocks.
Where would additional supply be stored?
What additional supply? If we increase domestic production, as we have slightly the last couple years, we would reduce imports, as we have.
As long as the market is an open market then the speculators will drive the price.
If you believe it is only speculation driving market prices, why is the spot market, which requires taking immediate delivery of the oil bought, at nearly the same price?
Thanks for your responses. I don’t necessarily think it is only speculation driving the price but I don’t see how you reduce the consumer price without price controls on what crude produced in the US can be sold at and specify that it can only be consumed in the US.
Just trying to get a grip on this drill more thing when there are many other factors included in what the final price at the pump becomes.