Does a barrel of oil drilled in the US stay in the US, or just go off into the global oil market?

Question

Is the idea of drilling more oil in the US to affect US gas prices a falicy? If it all goes into the same global oil marketplace and sold to the highest bidder then we can't possibly drill enough oil to affect that huge market.

Answer 1

Uh, I don't mean does it  physically leave. Of course not.

I think what happens is that it goes straight to refinement to gas... so the finished product costs about 60 dollars a barrel, then they set the price at the pump based on what it would cost if they bought it in the open market... about 140 dollars. Nice markup... nice scam to work both ends of the market.

Answer 2

Supply-side and demand economics.

Falicy,...Like you would not believe.

Answer 3

if there becomes a glut --- prices will fall just look at the home market now prices are falling as well

Answer 4

Stays in the U.S.

Does NOT make any sense to spend money to send it off to another country. That would cost more money.