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Yes, because it would increase world availabilities not because it would reduce U.S. imports.
Can't believe i'm doing this again. If we needed 1 million barrels a year(just a number not actual) and we used 100,000 of our own previously;now we upped production and still had the same need but used 500,000 of our own, what do you think would happen? We are now importing 400,000 less barrels. Higher domestic production=less foreign imports
Can't believe i'm doing this again. If we needed 1 million barrels a year(just a number not actual) and we used 100,000 of our own previously;now we upped production and still had the same need but used 500,000 of our own, what do you think would happen? We are now importing 400,000 less barrels. Higher domestic production=less foreign imports
Yes; but, the major price making influence would be the increased production, not the decreased imports.
Yes; but, the major price making influence would be the increased production, not the decreased imports.
Actually Walter it's not. When the price is determined, it's based on global usage and exports to other countries. If we kept everything we produced, we'd just be lowering the demand for importing to the US. Which would be the same effect to the market if we lessened our use based on alternatives like solar,hydro,etc...
Actually Walter it's not. When the price is determined, it's based on global usage and exports to other countries. If we kept everything we produced, we'd just be lowering the demand for importing to the US. Which would be the same effect to the market if we lessened our use based on alternatives like solar,hydro,etc...
What do you mean "global usage and exports to other countries"? Price has almost nothing to do with demand - oil is not a widget that goes in and out of style. It's a finite resource that runs everything, that effects everything else. It is the commodity.
If we increased domestic supply it would be "worth" more to us on the open market.
What do you mean "global usage and exports to other countries"? Price has almost nothing to do with demand - oil is not a widget that goes in and out of style. It's a finite resource that runs everything, that effects everything else. It is the commodity.
If we increased domestic supply it would be "worth" more to us on the open market.
Value is one thing but just like if we all had solar instead of oil tomorrow; yes it would effect price.
Can't believe i'm doing this again. If we needed 1 million barrels a year(just a number not actual) and we used 100,000 of our own previously;now we upped production and still had the same need but used 500,000 of our own, what do you think would happen? We are now importing 400,000 less barrels. Higher domestic production=less foreign imports
Quote:
Originally Posted by Lancet71
I guess a person with common sense would have known that was an exaggeration.
Price has almost nothing to do with demand - oil is not a widget that goes in and out of style. It's a finite resource that runs everything, that effects everything else. It is the commodity.
Like every commodity, the price of petroleum products and petroleum reflects the overall supply-demand condition in that commodity market.
However, because demand for petroleum products, and hence for petroleum, is relatively inelastic, it takes very large price changes to change demand.
Quote:
Originally Posted by MikeyKid
If we increased domestic supply it would be "worth" more to us on the open market.
An increase in the domestic supply, all other things held constant, would lead to lower prices.
A very large production increase could lead to a proportionately larger price decrease, leading to a situation where total revenues from the added production would be less that originally budgeted for; and, under certain circumstances, could be negative.
... if we all had solar instead of oil tomorrow ...
We would all have a lower standard of living because, as of now, solar costs more, including back ups for those days that have little sunlight and areas without enough sunlight, as well as the problems in trying to transport solar from where it can generate electricity to where this electricity is needed, than fossil fuel generated electricity.
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