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Energy independence: More U.S. oil production may limit price volatility

News OK -- Crude oil priced at the storage hub in Cushing currently trades for much less than Brent crude priced in London, so the notion of producing enough oil to eschew imports seems like a potentially positive development for consumers.

But that may not necessarily be the case.

Oil will continue to be a globally traded commodity, even if the U.S. is getting its crude from Texas and North Dakota instead of Saudi Arabia and Venezuela, so the world market will set its price, said Rayola Dougher, senior economist at the American Petroleum Institute.

She said it is nearly impossible to predict what will happen to the price of oil if domestic production in the United States continues to rise, but an increasing supply of oil likely would apply downward pressure to prices and benefit American consumer


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Submitted Oct 09, 2012 By: skb69sa
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Energy independence: More U.S. oil production may limit price volatility Back to Topics
REPLIES (newest first) Post a Reply
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leeac
Champion Author Ohio

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Message Posted: Oct 9, 2012 8:51:39 PM

This assumes US producers will not gouge or manipulate prices. This is a big assumption.
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EvergreenON
Champion Author Ontario

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Message Posted: Oct 9, 2012 6:09:42 PM

Speculators will always be very active to maintain the price at a high level.
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slowtrain
Champion Author Georgia

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Message Posted: Oct 9, 2012 5:04:05 PM

I'll believe that when I see it.
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boldrph
Champion Author Topeka

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Message Posted: Oct 9, 2012 4:35:33 PM

how dare they make a market for "our' oil!
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Kato51
Champion Author Atlanta

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Message Posted: Oct 9, 2012 4:31:25 PM

Good to hear. Lets keep it going.
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Discovery02
Champion Author Colorado Springs

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Message Posted: Oct 9, 2012 4:28:42 PM

Producing more domestic oil will help but as long as speculators are allowed to gamble on commodities futures, there will be volatility.
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weenerdog
Champion Author Detroit

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Message Posted: Oct 9, 2012 4:28:42 PM

would be nice
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SoutheastdannyB
All-Star Author Grand Rapids

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Message Posted: Oct 9, 2012 4:24:39 PM

we're producing more oil....
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dollarwatcher
Champion Author Wisconsin

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Message Posted: Oct 9, 2012 4:21:02 PM

Just like when the Cheese Board met in Green Bay, Wi once a month to set milk prices for the nation. They eventually moved to Chicago. Something is not right about fixing prices.
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unclenorman
Champion Author Tampa

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Message Posted: Oct 9, 2012 4:19:09 PM

Only disappearance of greed will make volatility stop.
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VB_Richard
Champion Author Virginia Beach

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Message Posted: Oct 9, 2012 4:17:12 PM

Good!!!
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nemoFL
Champion Author Florida

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Message Posted: Oct 9, 2012 4:15:30 PM

see if the price drops
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RAE344
Champion Author Virginia Beach

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Message Posted: Oct 9, 2012 4:14:16 PM

More refineries will also limit price volatility. Ask those who live is California.
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livedream
Champion Author Michigan

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Message Posted: Oct 9, 2012 4:13:20 PM

Sure, that's the Big lie that Big Oil wants us to believe -- when really it's the daily ruse designed to keep us all oil & gas dependent for years to come.
That's guaranteed more and bigger profits for Big Oil, Speculators and shareholders.

No thanks! I'd rather go alternative, or go EV, instead!
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Fhuang66
Champion Author Cleveland

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Message Posted: Oct 9, 2012 4:12:00 PM

THis is good.
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fire@53
Champion Author Philadelphia

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Message Posted: Oct 9, 2012 4:10:05 PM

Now that is good news.
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goodbuy
Champion Author Michigan

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Message Posted: Oct 9, 2012 4:10:01 PM

They will find some way to keep the prices up.
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ROSYMI
Champion Author Michigan

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Message Posted: Oct 9, 2012 4:08:53 PM

ok
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KillChain
Champion Author Albuquerque

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Message Posted: Oct 9, 2012 4:08:14 PM

And a way for the USA, to let the middle east blow them selves up. Without our intervention.
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mnorthwood13
Champion Author Michigan

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Message Posted: Oct 9, 2012 4:06:37 PM

*may*
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kst8er
Champion Author St. Louis

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Message Posted: Oct 9, 2012 4:06:16 PM

the govt will eventually dictate...
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Gas4Gore
Champion Author Detroit

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Message Posted: Oct 9, 2012 4:05:56 PM

Perhaps when Romney is President things will change for the better.
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Voltus
Champion Author Miami

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Message Posted: Oct 9, 2012 4:04:26 PM

Congress should pass a law: "Put America First Act" - all oil extracted and/or refined here must serve America's needs first, then the oil companies can sell the rest to whomever they please...
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julius1st4
Champion Author Ontario

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Message Posted: Oct 9, 2012 4:01:59 PM

Nothing will stabilize the Market untill there is infrastructure to distribute the oil & refine it.
Did anybody pay any attention to what just went on in "California" ; lots of oil bottled up in "Cushing" Oklahoma.
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Palantas
All-Star Author Indianapolis

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Message Posted: Oct 9, 2012 3:58:56 PM

Good.
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GENO54
All-Star Author Columbus

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Message Posted: Oct 9, 2012 3:57:07 PM

good
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NemoIL
Champion Author Illinois

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Message Posted: Oct 9, 2012 3:56:40 PM

This is what I have been saying for years. Let the Arabs keep their oil. we should run up the price of our grain that they depend on for food to give them a taste of their own medicine. Perhaps some $6 a loaf bread will open their eyes.
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ethanol_is_bad
Sophomore Author Boise

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Message Posted: Oct 9, 2012 3:53:49 PM

A nice way of saying we don't care where the oil comes from we are still going to rape you with it. Thanks for spreading common knowledge News OK...
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Jeepergeo
Champion Author San Bernardino

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Message Posted: Oct 9, 2012 3:50:47 PM

Boring.
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icemann987
Sophomore Author Sacramento

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Message Posted: Oct 9, 2012 3:49:13 PM

plus we are the top user of Gas i think if we can make more of our own the world demand would drop, which would drop the overall price, this article is BS.
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stevencr
Champion Author Ohio

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Message Posted: Oct 9, 2012 3:46:27 PM

More important then the price of oil, if we stop importing, is our nation security and the trade deficit.
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mycar2
Champion Author Akron

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Message Posted: Oct 9, 2012 3:45:52 PM

good
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heysailor
Champion Author Pittsburgh

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Message Posted: Oct 9, 2012 3:44:54 PM

Wishful thinking but only part of the problem. We're signing our death warrant as a species if we don't come to grips with our carbon footprint, our use of Earth's resources at a rate far in excess of the planet's ability to recover, and human impact on global climate change. All nations will have to act but we can't let Indian and Chinese blindness to the problem to control our own action.
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cableman31
Champion Author New York

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Message Posted: Oct 9, 2012 3:42:25 PM

We will never be ENERGY INDEPENDENDENT as long as we EXTPORT LOWER PRICED oil the turn around and IMPORT OIL AT HIGHER PRICES. This only helps the oil companies have higher prices so they have higher profits but costs the PUBLIC BIG TIME.
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TNT2EC
Champion Author Wisconsin

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Message Posted: Oct 9, 2012 3:41:13 PM

Only once it drops to a living wage level like $2.50 per gallon.
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greentre
Champion Author Pensacola

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Message Posted: Oct 9, 2012 3:40:55 PM

Fuel prices are not going back down. The oil sharks have smelled the blood (our pocket books) in the water and won't stop until everything (us) has been bled dry. Then everything will go overseas. They will come up with every conceivable excuse to manipulate the prices to astronomical heights.
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pmanning7843
Champion Author Georgia

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Message Posted: Oct 9, 2012 3:40:44 PM

ok
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Kawibiker
Champion Author Illinois

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Message Posted: Oct 9, 2012 3:39:53 PM

ok
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heartbroken2010
Champion Author Ottawa

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Message Posted: Oct 9, 2012 3:39:44 PM

Interesting.
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hallows
Champion Author St. Louis

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Message Posted: Oct 9, 2012 3:38:33 PM

Sounds good to me, JoeKR!
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ChuckGVT
Champion Author Vermont

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Message Posted: Oct 9, 2012 3:37:09 PM

What the article fails to mention is that the world price will drop if we are not buying from other countries because of less demand for their product.
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farn1958
All-Star Author Twin Cities

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Message Posted: Oct 9, 2012 3:36:07 PM

if it's mined here refined here why the hell should the price any where else matter.
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silvershark69
Champion Author Minnesota

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Message Posted: Oct 9, 2012 3:35:56 PM

It a global commodity, it will be a global price, not mater how much is produced ! !
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eddyp94
Champion Author Ontario

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Message Posted: Oct 9, 2012 3:34:16 PM

OPEC won't like that...
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ItisAJeepThing
Champion Author Tucson

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Message Posted: Oct 9, 2012 3:33:32 PM

The U.S. has increased its oil production by 14% over the past three years under President Obama. We are now the world's third largest oil producer and the largest producer of natural gas.

If we promote the use of abundant, cheap and clean American natural gas as our primary alternative to oil based fuels North America can quickly become energy independent. We need to replace diesel with CNG for local use and LNG for cross country trucks and trains.
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DR4URRV
Sophomore Author Wisconsin

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Message Posted: Oct 9, 2012 3:33:11 PM

no way out...
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truckguy115
Champion Author Orange County

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Message Posted: Oct 9, 2012 3:29:55 PM

Yeah OK.
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SOLONGCOLD
Champion Author Phoenix

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Message Posted: Oct 9, 2012 3:28:08 PM

he'll just get it from his best bud, chavez...
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DeHavilland
Champion Author Toronto

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Message Posted: Oct 9, 2012 3:27:53 PM

Limited volatility?
We'll see!
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JoeKR
Champion Author New Jersey

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Message Posted: Oct 9, 2012 3:25:48 PM

There are 2 distinct concerns regarding oil in the U.S. Price, of course, is one; the other is security. We are much more secure if we don't need to import our energy. Price is another matter. Even so, the less we import the less foreign cartels and market manipulators can influence the price and if we, currently the biggest consumer of petroleum, are buying from the world market that leaves a big surplus to be absorbed by the rest of the world.
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