[pumpjack]

Is it true that all oil produced in America goes on the international market and is sold to the American consumer at prices set by OPEC?

If it's true that all oil goes into one big collective international pot, it would seem that Democrats are right -- maybe more U.S. drilling wouldn't lower the price of gasoline at the pump?

[Bas]

The prices are set at the world market, not by Opec. But America gives away it's oil at huge discounts to the big oil companies.

[TreeFarmer]

But America gives away it's oil at huge discounts to the big oil companies.

We do? Please provide a couple of links for my viewing please.

Thanks;

TF

[pumpjack]

The prices are set at the world market, not by Opec. But America gives away it's oil at huge discounts to the big oil companies.

... but, but, big oil companies and independent co-ops are the ones that are doing the drilling.

[aldente]

Is it true that all oil produced in America goes on the international market and is sold to the American consumer at prices set by OPEC?

"Wocka Wocka Wocka"

Ever since the First Oil Crisis, the US lost the privilege of oil independence. So welcome to the party, no matter if you're a bit of a latecommer.

[Tyler_JC]

Is it true that all oil produced in America goes on the international market and is sold to the American consumer at prices set by OPEC?

If it's true that all oil goes into one big collective international pot, it would seem that Democrats are right -- maybe more U.S. drilling wouldn't lower the price of gasoline at the pump?

The prices are not set by OPEC. They are set by The Market.

More supply would mean lower prices.

[emailking]

The market does not "set" the price of oil. The sellers of the oil set the price. OPEC sets the price of the oil it produces and sells. OPEC has to set its prices accordingly if it wants to both sell its oil and avoid shortages. The "market" is just what all this amounts to.

[Peepers]

... but, but, big oil companies and independent co-ops are the ones that are doing the drilling.

Stockholder-owned oil companies like ExxonMobil, BP, Shell, Chevron, Kerr-McGree, Haliburton and others own and/or drill just one-fourth of the world's oil reserves. The rest are owned and drilled by state-run oil companies. But their exports still must be sold on the world market. If there are more buyers than sellers of the oil the price goes up. Shortages also occur -- as is happening in much of the Third World which can't afford to buy as much oil at these rising market prices.

[emailking]

I am not a 'proponent' of the market but products ARE sold to bidders by sellers and this relationship could be defined as a market. If the prices set by OPEC are too high then people conserve and the price goes down.

I think the market is a fair description of this dynamic. Don't you?

Yes I would agree with that. But if the claim is that the prices are not set by OPEC and are set by the "market" instead, well that's just wrong. OPEC sets the prices for their own oil.

[Kingcoal]

Oil is priced as high as someone is willing to pay - just like most things in a free market. I don't think that the house that sold accross the street was worth what it sold for, I wouldn't have paid that much, but someone else did. In the words of a realtor I argued with one time; "it's worth exactly how much someone is willing to pay." When demand matches or exceeds supply, the price goes up expotentially. If oil goes out of style tommorow, the price will plumet. The reason why fresh water is much cheaper is because where I live, supply far exceeds demand. Simple economics.

[Specop_007]

The only way drilling American fields will noticably lower prices is if we nationalize the industry.

[emersonbiggins]

The only way drilling American fields will noticably lower prices is if we nationalize the industry.

Get the ration cards out...

[burtonridr]

The only way drilling American fields will noticably lower prices is if we nationalize the industry.

+1

I wouldnt mind oil rationing, I think it would be just what we need to curb our outlandish demand....

[cat]

But America gives away it's oil at huge discounts to the big oil companies.

Is this due to tax breaks and land give aways or are they subsidized in other ways as well?