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The U.S. may be set to overtake Saudi Arabia as the world’s largest oil producer, but that...

The U.S. may be set to overtake Saudi Arabia as the world’s largest oil producer, but that probably won’t translate into lower prices at the pump. More U.S. production does not mean lower prices because total supply and demand is what matters; even if the U.S. relied only on domestic oil, prices would still be dictated by global market forces, Ben Casselman writes.
Comments (5)
  • davidbdc
    , contributor
    Comments (3141) | Send Message
     
    That may be true (but I'd argue there should be some incremental savings just due to proximity to demand). But lets look at the infrastructure required, the LABOR required, the other liquids produced that further help chemical manufacturers and others, their increased labor, perhaps port infrastructure buildout! Additional labor there, etc, etc, etc.

     

    And if the EPA tries to subvert (as opposed to properly regulate and support) we should storm the gates of Washington.
    12 Nov 2012, 05:48 PM Reply Like
  • DAG1996
    , contributor
    Comments (3064) | Send Message
     
    And contrary to what many like to believe, it doesn't mean we could just forget about the middle east and let them all kill each other either. All it really means is that the U.S. will have a tiny bit more leverage in global relations and negotiations.
    12 Nov 2012, 05:51 PM Reply Like
  • jerrycalpha
    , contributor
    Comments (59) | Send Message
     
    And perhaps the XL pipeline is crossing us mainly for export.
    12 Nov 2012, 06:02 PM Reply Like
  • SoldHigh
    , contributor
    Comments (999) | Send Message
     
    Of course total supply/demand is what matters - this is why it's so important for the US to contribute to the supply side while continuing to work on better efficiency.
    12 Nov 2012, 07:35 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1128) | Send Message
     
    World consumption of crude oil is about 86 mb per day, if nat gas replaces 10 mb per day, a 10 mb per day surplus of crude oil now will depress prices. There is not even enough storage for that daily surplus, hence prices will crash.

     

    If demand for crude by then is much higher , then we will see .....
    13 Nov 2012, 07:43 AM Reply Like
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