It seems as though everyone is screaming for more domestic exploration and drilling for oil. In people’s minds this will somehow lower the pump price for gasoline. I have yet to hear how this will come about.
As far as I know, our current production (yes, we are pumping domestic oil) is going on the world market. We are paying the same price per barrel for domestic oil as we are paying for Middle East crude.
Are we to believe that new sources of domestic crude will be sold to U.S. refineries at a lower price than to the world market, and that this lower price will be reflected in lower prices to the U.S. consumer at the pump?
And tomorrow pigs will fly.
Join the Discussion:
Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.
Full comments policy