Oil Market, Commodities, Domestic Oil Market? Please!
More will be added shortly...
Currently Crude oil is traded on the commodities market and fluctuations in supply world-wide affect the price of the commodity. Domestic USA Oil production as well as off-shore foreign oil are both traded at the same price. There is a World price for a barrel of oil regardless where it comes from.
Recently US President Barack Obama stated that he wanted to make bold moves to ramp up Domestic Oil production and reduce our dependence on foreign oil on this Yahoo article. Obama's idea is to reduce the impact on the price of oil because of political issues in oil countries. There is certainly one big problem with that. All the oil is traded on the commodities market so even more production here wouldn't affect the price per barrel. This needs to be FIXED!
The only way this will work is that we need bold moves on Oil for the stability of this country!
Create a Domestic (USA) Oil Commodity Trade (all grades of crude).
Ban the Exportation of Domestic Crude Oil, "Pumped here used here!"
Ban the Exportation of Fuel Distillates created from Domestic Oil.
Or, Ban the Export of all Fuel Distillates refined in the USA (help refining shortage now).
And.. As a result:
Foreign Oil prices could be "blended" into refined price of distillates.
This would create a method of competition in the oil market (US vs. Foreign)
Prices of oil would be based of Domestic production numbers
Actual usage of Crude oil would be measured (how much does the USA really use?), some is exported!
An actual supply vs. demand scenario would exist for the USA.
Cost of oil would be more closely tied of what it costs to produce instead of some dreamed up number based on speculation
The USA Economy would be stronger and more isolated from issues occuring world-wide (a Hell of a good idea)
Costs of acquiring oil would be less. Don't have to transport Domestic across the globe.