Reply to Why are we still dependant on Saudia Arabia for oil?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]

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.[/quote]

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."  [/quote]

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