Can any conservative here defend Sean Hannity's claim that oil drilled here will stay here?

Republicans believe in free commerce, don't they? They support capitalism, right? So by what authority will the oil companies who drill for oil on American soil be compelled to keep the oil here to relieve prices at the pump? Why shouldn't they sell it overseas, where they will no doubt make a TON more money than they'd make selling it here?Can any conservative here defend Sean Hannity's claim that oil drilled here will stay here?
are you kidding ?? the oil will go to the one which will pay for it the most just like the oil from alaskaCan any conservative here defend Sean Hannity's claim that oil drilled here will stay here?
Much of the current ';peak oil'; mentality stems from the thought that governments are going to do little to increase future supplies.





A large producer signaling to the market that production will be increased would do much to ease the concerns that future supplies will be unable to keep pace with demand.





As far as oil being ';kept'; here, that much is hogwash. The oil companies should be free to sell their oil on any market that will fetch them the highest price.





But that doesn't mean that increased production will not relieve energy prices domestically too.
I will defend that position, because while you believe you are so far sighted you prefer shipping about 600 Billion dollars overseas to foreigners is better than keeping 600 Billion at home minus shipping costs due to shorter distance to ship oil. You would rather import Gasoline from foreigners because our refineries can't keep up production and your farsighted ness thinks that is a great Idea not to develop any more refineries. You would rather pay foreign truckers to bring the oil to the shipping points because you would rather hurt domestic truckers and keep their fuel costs going up. You are a rocket scientist trying to do biology.
Hannity is an idiot who knows nothing about the logistics of oil production......or anything else of consequence for that matter.





Oil that is transported by sea like all of the Alaskan oil, is just as likely to go overseas as it is to go to the US.





All of the oil produced there has to be loaded onto tankers at Valdez. It's just as easy and cheap for the producers to load onto tankers bound for Japan or China as it is to load it on tankers bound for L.A. or Houston. And the Japanese and Chinese have to import their oil anyway. It's closer for them to ship it from Alaska than it is to ship it from the Middle East.
First off I'm a Libertarian, but he is likely right that the oil will stay here if market rates are paid for it. If the expectation is that U.S. oil companies who take the risk, drill here and find oil here will sell it cheaper that the market price, well that is just plain absurd.





Energy independence does not mean cheap energy. Don't believe me, look at Britain. They have the treasured ';energy independence'; with the North Sea, but don't have cheap energy.
OK, where would we send it?


It does cost money to ship it.





If oil sells at $100 a barrell, You want to get $100 a BBL


Now if it costs $10 BBL to ship it away and it sells for $100, You are now selling it at $90 + $10 shipping to make that $100 BBL price. WHY would you want to only make $90 when you can make $100?
they can and will but a bulk will be sold here for less and make the same amount of profit since they don't have to ship it overseas where there is already an abundance of oil in the middle east and russia.





If you take the United States out of the equation that uses 40% of the oil then there will be an abundance with current supplies. Therefore prices will drop everywhere. more here than anywhere else since we don't have a socilized government YET like in germany that has $15 per gallon gas.





See what you have to look forward to LIBERALS!!!





I GUESS THE TRUTH HURTS...





I'M SAYING THE SAME THING THE FIRST GUY DID AND HAVE 3 NEG'S LOL!
It is VASTLY CHEAPER to keep the oil close to where it will be used due to transportation costs.





That's simple economics, yes?





The reason is costs more overrseas is because of the TRANSPORTATION of it.





Either way it doesn't matter WHERE it's used. If we say we are going to drill then the world oil price will tank overnight. That helps us all.
First, ANY competition to foreign oil would be helpful in reducing gas prices. Second, I don't care if we sell some of the oil, the very fact that there will be more oil and we control it, again would mean better prices at the pump. Take an economics class, it's called supply and demand.
Big oil, as any other large corporation is only interested in maximizing profits and minimizing costs. Everything else is secondary.





They couldn't care less about keeping oil in America, you or I or the environment, or anything else. And they, like so many other large corporations have their teams of lobbyists paying off the politicians and influencing government decision in their favor.
Well, if the oil does go someplace else, then our trade deficit will drop.


Also, more oil worldwide means a drop in price.


Supply and demand.
No, it won't stay here but it will add to the global supply and drive all prices down.
Boy, you really, really need a simplified version of Econ 101 explained to you, don't you?!?





Repeat after me: It DOESN'T MATTER whether oil drilled here stays here or goes somewhere else!!! Go ahead and do it. And keep doing it until this simple, easy-to-remember fact sinks in.





Why, you ask? Well, it goes like this:





1 - Oil is a commodity (translation: for most practical purposes oil is oil is oil (i.e., it's ALL THE SAME STUFF)),





2 - Commodities are priced and traded on world markets,





3 - Purchasers of commodities buy them via commodity contracts purchased on world commodity markets at prices set by those markets (see #2 above), and





4 - The price, having been set by the market, and separate from transportation costs, IS THE SAME FOR ALL PURCHASERS buying the same contracts.





Bottom Line: It doesn't make any difference, except to the purchaser, as to where the oil comes from nor does the seller care one bit about who buys his oil nor where that buyer is located.
Hey, that is a very good question, but you have made an assumption that very well may not be true and you provide no support for your claim that they would make a ton of money from overseas.





Let me give you a little background here. If the oil is drilled here, it is refined here. Once the oil is refined, it would cost much more to ship overseas than it would to ship it to some regional location. Hence, profits would be greater.





Also, and this is the most important part of the whole question, the oil obtained from here, at least in Louisiana, is a light crude. It is not as valuable a product as you get from the Middle East. So initially, you profit potential is significantly reduced.





Not too many people know or realize those facts without in-depth research. I happen to know a little about this because of where I work and the people I work with.





But I have to say that is really a great, well conceived question and deserves a legitimate response.