Originally Posted by
ImEbee
Granted I am not as learned as others about this but since oil is traded as a commodity, does it matter where the oil comes from? I guess what I'm asking is how is domestic oil any cheaper than foreign? And if it is purely increasing supply then don't ever expect prices to go down, I imagine the best we can hope for is a plateu and let inflation catch up over the years.
I think you bring up an interesting point in that if speculation is the root cause of oil prices skyrocketing, which many believe, why drill?
The fact that we're having a debate here re: more drilling seems to be the writing on the wall that people are finally coming to the conclusion that current oil prices are primarily driven by supply/demand issues.
On a side note, Chevron just had their oil operation in Nigeria sabotaged by militants, whole pipeline now out of service, which will reduce their production in Nigeria by about 200,000 bbls/day...It will be interesting to see how this might affect prices.