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Energy independence: More U.S. oil production may limit price volatility

News OK -- Crude oil priced at the storage hub in Cushing currently trades for much less than Brent crude priced in London, so the notion of producing enough oil to eschew imports seems like a potentially positive development for consumers.

But that may not necessarily be the case.

Oil will continue to be a globally traded commodity, even if the U.S. is getting its crude from Texas and North Dakota instead of Saudi Arabia and Venezuela, so the world market will set its price, said Rayola Dougher, senior economist at the American Petroleum Institute.

She said it is nearly impossible to predict what will happen to the price of oil if domestic production in the United States continues to rise, but an increasing supply of oil likely would apply downward pressure to prices and benefit American consumer

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Submitted Oct 09, 2012 By: skb69sa

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leeac Champion Author Ohio Posts:1,596 Points:433,905 Joined:Jan 2012	Message Posted: Oct 9, 2012 8:51:39 PM Ignore leeac Report Abuse This assumes US producers will not gouge or manipulate prices. This is a big assumption.
EvergreenON All-Star Author Ontario Posts:943 Points:483,690 Joined:Apr 2011	Message Posted: Oct 9, 2012 6:09:42 PM Ignore EvergreenON Report Abuse Speculators will always be very active to maintain the price at a high level.
slowtrain Champion Author Georgia Posts:3,667 Points:948,900 Joined:Aug 2008	Message Posted: Oct 9, 2012 5:04:05 PM Ignore slowtrain Report Abuse I'll believe that when I see it.
boldrph Champion Author Topeka Posts:18,376 Points:3,451,640 Joined:Oct 2002	Message Posted: Oct 9, 2012 4:35:33 PM Ignore boldrph Report Abuse how dare they make a market for "our' oil!
Kato51 Champion Author Atlanta Posts:7,265 Points:2,164,765 Joined:Jul 2005	Message Posted: Oct 9, 2012 4:31:25 PM Ignore Kato51 Report Abuse Good to hear. Lets keep it going.
Discovery02 Champion Author Colorado Springs Posts:2,560 Points:310,665 Joined:May 2012	Message Posted: Oct 9, 2012 4:28:42 PM Ignore Discovery02 Report Abuse Producing more domestic oil will help but as long as speculators are allowed to gamble on commodities futures, there will be volatility.
weenerdog Champion Author Detroit Posts:9,461 Points:1,884,890 Joined:Jan 2008	Message Posted: Oct 9, 2012 4:28:42 PM Ignore weenerdog Report Abuse would be nice
SoutheastdannyB All-Star Author Grand Rapids Posts:590 Points:581,880 Joined:Jul 2007	Message Posted: Oct 9, 2012 4:24:39 PM Ignore SoutheastdannyB Report Abuse we're producing more oil....
dollarwatcher Champion Author Wisconsin Posts:7,945 Points:1,535,220 Joined:Mar 2007	Message Posted: Oct 9, 2012 4:21:02 PM Ignore dollarwatcher Report Abuse Just like when the Cheese Board met in Green Bay, Wi once a month to set milk prices for the nation. They eventually moved to Chicago. Something is not right about fixing prices.
unclenorman Champion Author Tampa Posts:1,348 Points:140,250 Joined:Jan 2012	Message Posted: Oct 9, 2012 4:19:09 PM Ignore unclenorman Report Abuse Only disappearance of greed will make volatility stop.
VB_Richard Champion Author Virginia Beach Posts:1,663 Points:352,795 Joined:Dec 2011	Message Posted: Oct 9, 2012 4:17:12 PM Ignore VB_Richard Report Abuse Good!!!
nemoFL Champion Author Florida Posts:8,801 Points:1,610,275 Joined:Oct 2008	Message Posted: Oct 9, 2012 4:15:30 PM Ignore nemoFL Report Abuse see if the price drops
RAE344 Champion Author Virginia Beach Posts:3,064 Points:661,520 Joined:Jun 2011	Message Posted: Oct 9, 2012 4:14:16 PM Ignore RAE344 Report Abuse More refineries will also limit price volatility. Ask those who live is California.
livedream Champion Author Michigan Posts:3,685 Points:755,060 Joined:Mar 2011	Message Posted: Oct 9, 2012 4:13:20 PM Ignore livedream Report Abuse Sure, that's the Big lie that Big Oil wants us to believe -- when really it's the daily ruse designed to keep us all oil & gas dependent for years to come. That's guaranteed more and bigger profits for Big Oil, Speculators and shareholders. No thanks! I'd rather go alternative, or go EV, instead!
Fhuang66 Champion Author Cleveland Posts:1,325 Points:912,570 Joined:Oct 2005	Message Posted: Oct 9, 2012 4:12:00 PM Ignore Fhuang66 Report Abuse THis is good.
fire@53 Champion Author Philadelphia Posts:11,833 Points:2,770,050 Joined:May 2003	Message Posted: Oct 9, 2012 4:10:05 PM Ignore fire@53 Report Abuse Now that is good news.
goodbuy Champion Author Michigan Posts:7,668 Points:1,422,580 Joined:May 2005	Message Posted: Oct 9, 2012 4:10:01 PM Ignore goodbuy Report Abuse They will find some way to keep the prices up.
ROSYMI Champion Author Michigan Posts:1,028 Points:368,750 Joined:Nov 2011	Message Posted: Oct 9, 2012 4:08:53 PM Ignore ROSYMI Report Abuse ok
KillChain Champion Author Albuquerque Posts:5,610 Points:1,531,260 Joined:Jun 2006	Message Posted: Oct 9, 2012 4:08:14 PM Ignore KillChain Report Abuse And a way for the USA, to let the middle east blow them selves up. Without our intervention.
mnorthwood13 Champion Author Michigan Posts:1,385 Points:763,335 Joined:Apr 2010	Message Posted: Oct 9, 2012 4:06:37 PM Ignore mnorthwood13 Report Abuse may
kst8er Champion Author St. Louis Posts:2,882 Points:1,046,440 Joined:Feb 2006	Message Posted: Oct 9, 2012 4:06:16 PM Ignore kst8er Report Abuse the govt will eventually dictate...
Gas4Gore Champion Author Detroit Posts:2,421 Points:423,875 Joined:Jan 2010	Message Posted: Oct 9, 2012 4:05:56 PM Ignore Gas4Gore Report Abuse Perhaps when Romney is President things will change for the better.
Voltus Champion Author Miami Posts:8,456 Points:1,556,375 Joined:May 2005	Message Posted: Oct 9, 2012 4:04:26 PM Ignore Voltus Report Abuse Congress should pass a law: "Put America First Act" - all oil extracted and/or refined here must serve America's needs first, then the oil companies can sell the rest to whomever they please...
julius1st4 Champion Author Ontario Posts:4,210 Points:1,190,600 Joined:Jul 2003	Message Posted: Oct 9, 2012 4:01:59 PM Ignore julius1st4 Report Abuse Nothing will stabilize the Market untill there is infrastructure to distribute the oil & refine it. Did anybody pay any attention to what just went on in "California" ; lots of oil bottled up in "Cushing" Oklahoma.
Palantas All-Star Author Indianapolis Posts:803 Points:413,845 Joined:Sep 2011	Message Posted: Oct 9, 2012 3:58:56 PM Ignore Palantas Report Abuse Good.
GENO54 Veteran Author Columbus Posts:303 Points:184,490 Joined:Oct 2007	Message Posted: Oct 9, 2012 3:57:07 PM Ignore GENO54 Report Abuse good
NemoIL Champion Author Illinois Posts:3,025 Points:1,313,220 Joined:Aug 2008	Message Posted: Oct 9, 2012 3:56:40 PM Ignore NemoIL Report Abuse This is what I have been saying for years. Let the Arabs keep their oil. we should run up the price of our grain that they depend on for food to give them a taste of their own medicine. Perhaps some $6 a loaf bread will open their eyes.
ethanol_is_bad Sophomore Author Boise Posts:242 Points:143,710 Joined:Oct 2011	Message Posted: Oct 9, 2012 3:53:49 PM Ignore ethanol_is_bad Report Abuse A nice way of saying we don't care where the oil comes from we are still going to rape you with it. Thanks for spreading common knowledge News OK...
Jeepergeo Champion Author San Bernardino Posts:1,380 Points:586,930 Joined:Jan 2011	Message Posted: Oct 9, 2012 3:50:47 PM Ignore Jeepergeo Report Abuse Boring.
icemann987 Sophomore Author Sacramento Posts:242 Points:53,320 Joined:Mar 2011	Message Posted: Oct 9, 2012 3:49:13 PM Ignore icemann987 Report Abuse plus we are the top user of Gas i think if we can make more of our own the world demand would drop, which would drop the overall price, this article is BS.
stevencr Champion Author Ohio Posts:5,656 Points:1,434,765 Joined:Mar 2009	Message Posted: Oct 9, 2012 3:46:27 PM Ignore stevencr Report Abuse More important then the price of oil, if we stop importing, is our nation security and the trade deficit.
mycar2 Champion Author Akron Posts:2,110 Points:2,358,115 Joined:Apr 2004	Message Posted: Oct 9, 2012 3:45:52 PM Ignore mycar2 Report Abuse good
heysailor Champion Author Pittsburgh Posts:9,587 Points:2,333,645 Joined:Mar 2006	Message Posted: Oct 9, 2012 3:44:54 PM Ignore heysailor Report Abuse Wishful thinking but only part of the problem. We're signing our death warrant as a species if we don't come to grips with our carbon footprint, our use of Earth's resources at a rate far in excess of the planet's ability to recover, and human impact on global climate change. All nations will have to act but we can't let Indian and Chinese blindness to the problem to control our own action.
cableman31 Champion Author New York Posts:8,833 Points:2,016,800 Joined:May 2004	Message Posted: Oct 9, 2012 3:42:25 PM Ignore cableman31 Report Abuse We will never be ENERGY INDEPENDENDENT as long as we EXTPORT LOWER PRICED oil the turn around and IMPORT OIL AT HIGHER PRICES. This only helps the oil companies have higher prices so they have higher profits but costs the PUBLIC BIG TIME.
TNT2EC Champion Author Wisconsin Posts:4,994 Points:1,513,585 Joined:Oct 2008	Message Posted: Oct 9, 2012 3:41:13 PM Ignore TNT2EC Report Abuse Only once it drops to a living wage level like $2.50 per gallon.
greentre All-Star Author Pensacola Posts:788 Points:276,055 Joined:Oct 2011	Message Posted: Oct 9, 2012 3:40:55 PM Ignore greentre Report Abuse Fuel prices are not going back down. The oil sharks have smelled the blood (our pocket books) in the water and won't stop until everything (us) has been bled dry. Then everything will go overseas. They will come up with every conceivable excuse to manipulate the prices to astronomical heights.
pmanning7843 Champion Author Georgia Posts:1,681 Points:338,215 Joined:Jun 2012	Message Posted: Oct 9, 2012 3:40:44 PM Ignore pmanning7843 Report Abuse ok
Kawibiker Champion Author Illinois Posts:1,175 Points:205,575 Joined:May 2012	Message Posted: Oct 9, 2012 3:39:53 PM Ignore Kawibiker Report Abuse ok
heartbroken2010 Champion Author Ottawa Posts:4,344 Points:897,535 Joined:Aug 2010	Message Posted: Oct 9, 2012 3:39:44 PM Ignore heartbroken2010 Report Abuse Interesting.
hallows Champion Author St. Louis Posts:4,698 Points:2,804,620 Joined:Jun 2004	Message Posted: Oct 9, 2012 3:38:33 PM Ignore hallows Report Abuse Sounds good to me, JoeKR!
ChuckGVT Champion Author Vermont Posts:6,698 Points:1,693,200 Joined:Apr 2008	Message Posted: Oct 9, 2012 3:37:09 PM Ignore ChuckGVT Report Abuse What the article fails to mention is that the world price will drop if we are not buying from other countries because of less demand for their product.
farn1958 All-Star Author Twin Cities Posts:886 Points:183,385 Joined:Feb 2011	Message Posted: Oct 9, 2012 3:36:07 PM Ignore farn1958 Report Abuse if it's mined here refined here why the hell should the price any where else matter.
silvershark69 Champion Author Minnesota Posts:1,009 Points:379,665 Joined:Dec 2011	Message Posted: Oct 9, 2012 3:35:56 PM Ignore silvershark69 Report Abuse It a global commodity, it will be a global price, not mater how much is produced ! !
eddyp94 Champion Author Ontario Posts:8,163 Points:1,660,835 Joined:Mar 2008	Message Posted: Oct 9, 2012 3:34:16 PM Ignore eddyp94 Report Abuse OPEC won't like that...
ItisAJeepThing Champion Author Tucson Posts:19,755 Points:2,151,580 Joined:Oct 2006	Message Posted: Oct 9, 2012 3:33:32 PM Ignore ItisAJeepThing Report Abuse The U.S. has increased its oil production by 14% over the past three years under President Obama. We are now the world's third largest oil producer and the largest producer of natural gas. If we promote the use of abundant, cheap and clean American natural gas as our primary alternative to oil based fuels North America can quickly become energy independent. We need to replace diesel with CNG for local use and LNG for cross country trucks and trains.
DR4URRV Sophomore Author Wisconsin Posts:238 Points:150,610 Joined:Nov 2011	Message Posted: Oct 9, 2012 3:33:11 PM Ignore DR4URRV Report Abuse no way out...
truckguy115 Champion Author Orange County Posts:1,632 Points:221,225 Joined:Apr 2008	Message Posted: Oct 9, 2012 3:29:55 PM Ignore truckguy115 Report Abuse Yeah OK.
SOLONGCOLD Champion Author Ann Arbor Posts:1,107 Points:271,140 Joined:Nov 2010	Message Posted: Oct 9, 2012 3:28:08 PM Ignore SOLONGCOLD Report Abuse he'll just get it from his best bud, chavez...
DeHavilland Champion Author Toronto Posts:5,875 Points:1,904,240 Joined:Jun 2007	Message Posted: Oct 9, 2012 3:27:53 PM Ignore DeHavilland Report Abuse Limited volatility? We'll see!
JoeKR Champion Author New Jersey Posts:9,473 Points:1,744,470 Joined:Feb 2006	Message Posted: Oct 9, 2012 3:25:48 PM Ignore JoeKR Report Abuse There are 2 distinct concerns regarding oil in the U.S. Price, of course, is one; the other is security. We are much more secure if we don't need to import our energy. Price is another matter. Even so, the less we import the less foreign cartels and market manipulators can influence the price and if we, currently the biggest consumer of petroleum, are buying from the world market that leaves a big surplus to be absorbed by the rest of the world.