Here I go again showing my ignorance so I’ll depend on some of you to ‘splain to me.......I thought if we produced our own oil and refined our own oil, gas prices in the US would go down.....where am I going wrong?
I thought we were building more refineries.
And then you have the electric cars.
If it reaches $4, I think it will be short lived.
I thought we were building more refineries.
And then you have the electric cars.
If it reaches $4, I think it will be short lived.
Oil is fungible...it doesn’t really matter where it is produced. If a million barrels of oil go offline, it affects the price everywhere.
Especially considering we are no the world’s leader in oil production and for the first time in ever we are energy independent. One would think oil independence wouldn’t mean exorbitant gas prices. Didn’t Saudi Arabia have 10 cent gas for their people when they were the top dog in oil production?
If we produce our own, it adds to the total supply available, but it is the total supply available that drives the price. (Assuming a free commodity market where supply can flow to meet demand.) If the price is too low here, our supplies will be exported until the prices across the board equalize (after adjusting for taxes and transport cost and other indirect issues.)
Apparently there are issues with some refineries, so we aren’t refining as much as we would like. That affects supply which affects price.
Millions of barrels of that oil have been exported so it’s not strictly being used here.
Though!what good is having an abundant supply of oil if you don’t have adequate facilities to refine it?