The "our oil" myth

[SHRED]

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Quoted from another forum. A great point(s):


Again, it is not and will not be "our" oil.

Multinational oil companies bid on oil leases that allow them to drill on US land. After winning the bid, they then develop, or do not develop, the resources they control.

If oil is produced from US land, these corporations then sell the oil on the global marketplace, to the highest bidder. It could go to Ohio, or China, or Pakistan. The market does not care.

So. If you're calculating the effect of new US reserves on US pump-prices, you have to keep the above in mind.

The new oil will increase supply, if it does, as a percentage of the whole, vast, world supply. The additional supply will not be limited to a percentage of the domestic market.

Since the global market is much (and increasingly) vaster than the domestic market, the addition of new reserves from US land will be comparatively small. That's why government agencies predict that decreases in US pump prices will be negligible if the new reserves are exploited.

Sorry for belaboring the obvious. But people here still seem to think the US is Venezuela, whose nationalized energy sector accounts for why Venezuelans pay about 12 cents a gallon for gas.

~ "foppy"

http://acapella.harmony-central.com/forums/showthread.php?t=2056024

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[justgamma]

1. Thank you for posting this.

I have been trying to tell everyone I know the facts. Our oil is not nationalized, so there is no guarantee that we will see any of it.

The fact is that US exports to foreign nations is up dramatically.

[bvar22]

2. And it is not just American Oil,

but the oil our troops fought and died for in Iraq....the War for Oil that was (or will be) paid for by the American Taxpayer (+$1 Trillion).....will also be sold on the Global Market, and the Global Oil Corps will keep the profits.

Can we get a referendum to stop this theft, and let the "Iraqi Oil Profits" pay for Bush's War (like the Republicans promised) before the Oil Corporations take their slice?