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Very good point. People need to understand that oil is fungible and when theres not enough of it, everyone who buys it will pay that premium.

Since we don't have a Nationalized oil industry in this county, the oil belongs to the oil companies foreign and domestic who are drilling here in the United states.
You and I don't own the oil and neither does the US Govt.
So if the oil companies, can get a higher price outside this country, oil pumped in the United States could be shipped elsewhere. - Tom

Since we don't have a Nationalized oil industry in this county, the oil belongs to the oil companies foreign and domestic who are drilling here in the United states. You and I don't own the oil and neither does the US Govt. So if the oil companies, can get a higher price outside this country, oil pumped in the United States could be shipped elsewhere. -

OK Tom, you are right - but you are scaring me here a bit. Are you saying it is a good thing or a bad thing that we don't have a nationalized oil industry?

And wouldn't more supply solve the problem anyway?

Since we don't have a Nationalized oil industry in this county, the oil belongs to the oil companies foreign and domestic who are drilling here in the United states. You and I don't own the oil and neither does the US Govt. So if the oil companies, can get a higher price outside this country, oil pumped in the United States could be shipped elsewhere. - Tom

I can't tell if you are a proponent of nationalized oil. It's a bad idea.

Here is a few things you are missing in the grand scheme about free market (which is arguable about oil).

The oil company is going to get the current going market rate from most depending on the futures price set by investors (60% anyway). Otherwise, contracts are written to agreed upon rates. The oil companies then have their established sales rate. Their next goal is to economize the cost of getting the product from the earth to the customer. Pumping and shipping for refinement is a large cost. There is more profit to be made from a company pumping in the gulf and shipping to Houston than to China or Russia. The second part of the equation that affects the price we pay at the pump is the futures market. That is a highly emotional driven component. Speculators gamble on supply and demand to place their bets. If America were to some day announce, "All regulations on oil exploration, extraction, refinement, shipping and oversight are hereby rescinded. And there are no longer any permits required and civil lawsuits against oil companies are illegal." speculators would drop dead of angina first. Then you would see the price of oil drop dramatically. Why? The speculation is that America could significantly unleash a new chunk of supply into the world market. More supply feeds demand and increases competition. It's a complicated formula. But Americans would certainly feel the positive impact of American companies expanding extraction and refinement in the US.