Will increased domestic oil production impact prices or supply?

OK, do we need a little realism here? The U.S. is not one of the world's major oil producers. So, what will the small boost in domestic production do? Sure we can drill offshore, but there is no guarantee that we will find oil. And what guarantee is there that whatever oil is found won't just be exported and sold overseas? The dollar is weak right now, making U.S. oil attractive to foreign buyers. Do people think that increased oil output here will have a significant effect on the world supply or global prices??Will increased domestic oil production impact prices or supply?
William you know absolutely nothing about oil production.....nada...zilchWill increased domestic oil production impact prices or supply?
Both, But we will not see any affect for about 10 years. They still have to build and drill for all the oil. 1 , oil production is gauged on a world level not a country level, so when they count the amount of oil in storage they just don't count the US or Spain they count the global supply and the global consumption. Also the price is going to depend on if your looking at US oil or Crude oil which is what Gas or Diesel is made from. US oil will be cheaper because like you said the dollar is weaker, but Crude oil will stay the same price because it is a global stock,
I have heard that any oil we find (or more like Exxon-Mobil finds) will be placed on the open market for the highest bidder - after all E-M wants to make as much money as they can. So, it's not going to go right to our refineries and our gas tanks.





Some people think that if we start, it will have an impression on OPEC and others and will put pressure on them to lower prices. But, I think they're all out to make a buck, and they'll just scale back output to keep the price high.
Yes,. it will impact prices and supply. OPEC will continue trying to influence global oil prices in it's favor.





As far as where the oil goes, it usually stays geographically close to where it is pumped from. The cost of transportation usually keeps it there. Much of the oil in Alaska goes to Japan and South Korea. Oil from the Ukraine goes to Russia and Europe. Because the United States is so energy hungry, we do import from all over the globe. We will also see China do this more and more.





The prices will fluctuate as America ramps up oil exploration and production and OPEC tries to control global prices. If OPEC wants to keep prices high, they will reduce their own production. This means that they will make less money. The less money they make, the more unhappy the member nations of OPEC become.





I don't think we can produce enough oil to break OPEC, but the increased production will at least be a stop gap to do something, by our own hands, to control our own fuel supplies and prices while we pursue all the alternate forms of cheap and renewable fuels that we will need in the future as the world finds that oil production cannot continue to meet its energy needs.





How'd you like that last sentence?





As far as not knowing if there is oil there, we do know there is oil there by the oil seeping into the ocean. Pumping it will actually reduce the pressure building that is forcing the oil to seep into the sea. We don't know how much there is, but we do know its there. We won't know how much is there until we start tapping the reserve.





Another advantage of tapping this resource is the ability to be more flexible and resilient in our supply sources. If hurricanes interrupt supply in the Gulf of Mexico, OCS drilling would still continue.