Why are we still dependant on Saudia Arabia for oil?

[Anonymous]

Anonymous wrote:I work on this. We aren't dependent. We are net exporters.

But oil barrel prices are tied together worldwide.

Also, the US is sitting on vast oil reserves that could be tapped in case of emergency. Currently prices aren't high enough for companies to want to go after those.

Yes. Here are the data: https://www.eia.gov/dnav/pet/PET_MOVE_WKLY_DC_NUS-Z00_MBBLPD_W.htm

We both import and export, but exports are larger than imports. But if Saudi Arabia cuts prices, US producers have to reduce their prices, otherwise US users would just purchase the cheaper overseas oil.

[Anonymous]

Anonymous wrote:Oil is globally traded, there is a world market, so there is a world price (with some adjustments for local quality). So even if we don't import oil from Saudi, what it does has a huge impact on the price of oil here.

The above is the correct answer. This is why many people are worried about exporting natural gas because it will create a world price.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I work on this. We aren't dependent. We are net exporters.

But oil barrel prices are tied together worldwide.

Also, the US is sitting on vast oil reserves that could be tapped in case of emergency. Currently prices aren't high enough for companies to want to go after those.

Yes. Here are the data: https://www.eia.gov/dnav/pet/PET_MOVE_WKLY_DC_NUS-Z00_MBBLPD_W.htm

We both import and export, but exports are larger than imports. But if Saudi Arabia cuts prices, US producers have to reduce their prices, otherwise US users would just purchase the cheaper overseas oil.

The oil industry is used to boom and bust. The companies that go bust get swallowed up by those who are prepared for it. Saudi has tried to drive the US out of the market before, and it didn't work. The US industry just made dramatic strides in reducing their costs.

The thing about fracking is that it is quickly scalable. You drill a well, hit oil and, if prices are low, you wait. When prices go up, you frack the well and produce. It's called the "fracklog."

[Anonymous]

Anonymous wrote:I have heard multiple times in the media that we are "oil independent" and we now export more than we import. I don't know if this is true or if its bullshit.
If true, why are we still dealing with these overly wealthy princes and sultans in Saudi Arabia???

Don't you think its still a national security issue that we have a dependency on mid east oil???

What year do you live in?

The US is now the #1 oil producer in the world. The reason Russia is acting up against OPEC is because Russia wants to try to kill off American oil (shale producers in particular) that's been killing them and the market for years. The drawback is the US producers need higher prices to break even compared to Saudi and Russian oil.

[Anonymous]

Anonymous wrote:Huh? We're really not. We haven't been, since fracking started.

You're beyond stupid.

Fracking is why we need less Saudi oil than ever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I work on this. We aren't dependent. We are net exporters.

But oil barrel prices are tied together worldwide.

Also, the US is sitting on vast oil reserves that could be tapped in case of emergency. Currently prices aren't high enough for companies to want to go after those.

Yes. Here are the data: https://www.eia.gov/dnav/pet/PET_MOVE_WKLY_DC_NUS-Z00_MBBLPD_W.htm

We both import and export, but exports are larger than imports. But if Saudi Arabia cuts prices, US producers have to reduce their prices, otherwise US users would just purchase the cheaper overseas oil.

The oil industry is used to boom and bust. The companies that go bust get swallowed up by those who are prepared for it. Saudi has tried to drive the US out of the market before, and it didn't work. The US industry just made dramatic strides in reducing their costs.

The thing about fracking is that it is quickly scalable. You drill a well, hit oil and, if prices are low, you wait. When prices go up, you frack the well and produce. It's called the "fracklog."

Umm what? You can’t just drill a well and then stop. It needs capped if you don’t want the oil. It’s not like you have to suck if out of the ground, it flows out on its own.

But yes, plenty of companies will not drill on land that they lease until oil hits a certain amount.