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Politics : Politics of Energy
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To: Road Walker who wrote (294)6/12/2008 3:04:29 PM
From: TimF  Read Replies (1) of 86355
 
When they import oil, the oil they bring in is likely cheaper at the source, but not cheaper for the US oil companies.

If the Saudis spend $5 barrel to drill the oil but sell it for $130, the US oil companies are paying the $130 (also it cost them a bit, I'd guess a few dollars, to transport the oil).

If they drill in a place like ANWR or offshore of the US it might cost $20/barell to get it out of the ground, but they would have the rights to that oil, and wouldn't have to pay someone else's markup.

The problem is that once you exclude places like ANWR and most of the offshore areas (only limited offshore drilling is allowed in American waters), then there are few if any good candidates for exploration and drilling in the US).

To give one example, if we opened ANWR you would get oil investment in ANWR, its not like the American oil companies are not drilling and relying on imports as a choice.
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