If we pay 110 per barrel for foreign oil, how much do we pay for oil drilled off shore? Is it at a discount?

Off-shore oil will be sold on the open market just like foreign oil. The benefit is that it will increase supply, which will decrease cost.If we pay 110 per barrel for foreign oil, how much do we pay for oil drilled off shore? Is it at a discount?
Same price. There is no discount. The price is set by the market and the market is international.





The additional amount of oil to be gained is a drop in the bucket. According to a 2007 report from the US Department of energy the effect of offshore drilling on price will be minimal, and won't show up for years. See below for a direct link to the report and a quote from the report.





';The projections in the OCS access case indicate that access to the Pacific, Atlantic, and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030. Leasing would begin no sooner than 2012, and production would not be expected to start before 2017. Total domestic production of crude oil from 2012 through 2030 in the OCS access case is projected to be 1.6 percent higher than in the reference case, and 3 percent higher in 2030 alone, at 5.6 million barrels per day. For the lower 48 OCS, annual crude oil production in 2030 is projected to be 7 percent higher鈥?.4 million barrels per day in the OCS access case compared with 2.2 million barrels per day in the reference case (Figure 20). Because oil prices are determined on the international market, however, any impact on average wellhead prices is expected to be insignificant. ';If we pay 110 per barrel for foreign oil, how much do we pay for oil drilled off shore? Is it at a discount?
The theory of a free market is the law of supply and demand. If you produce oil, you want to sell it. If you are the only one with oil and a lot of people want to buy it, you can charge what ever you want. If there are others supplying oil then to get someone to buy yours, you have to modify your price to make it attractive to the buyer, If we produce our own oil buy drilling off-shore this will increase the supply. Those selling will have to lower prices to be able to sell theirs. If they don't then people will buy from the one who does lower their price. The alternative is to get an alternative fuel source reducing the demand for oil. If one existed, the oil producers would lower their prices in order to make oil more attractive than the alternative.
We probably pay 110 per barrel, but the money stays in our country.
It goes to the highest bidder, which may not be us.