????Does the oil that is extracted from U.S. offshore wells belong to us???

[Walk away]

I keep hearing that to give up this drilling will put us at the mercy of the "Evil Middle East". Is this really true? Don't companies just pay for the rights to extract and then it gets shipped off to refineries all over the world where it all gets mixed together and then sold at the same price? Or do we sell it to oil companies by the barrel?

Can someone explain this to me?

[dgibby]

1. I think you've answered your own question.n/t

[Walk away]

5. So the only benefit to us is oil industry jobs and a few dollars?

Why do we do it?

[dgibby]

10. I can think of three reasons:

1. Peak oil is a much bigger problem than we even suspect and the govt. doesn't want to acknowledge the truth because of the stock market.

2. In the event of a major conflict, inability to import oil, etc, the President could declare a National Security Disaster, and nationalize the wells.

3. Campaign financing by big oil. When in doubt, follow the money.

[time_has_come]

2. Oil is nationalized in many middle east countries...which is why you hear that

but this oil doesn't "belong to us," no. It belongs to BP. The US government prefers oil to be extracted close to home because it is (ironically) more secure and dependable.

[FarCenter]

3. Very little oil is exported from the US

We are a net importer by a wide margin.

We do export refined products such as gasoline, diesel, motor oils, etc. but that is aslo small.

http://www.eia.doe.gov/dnav/pet/pet_move_exp_dc_NUS-Z00_mbbl_m.htm Exports

http://www.eia.doe.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm Imports

[obxhead]

4. drill baby drill is sold to us under the guise of

resource security. In the case of offshore oil in the US it is a complete lie. Every drop pulled out of the ground goes onto the world market and is sold to the highest bidder. It is in no way guaranteed to come to the US. Some does make it back here, but only because we buy it, not because we "own" it.

This nonsense must stop and a great place for it to begin would be the MSM reporting this fact every time anyone says drill here, drill now. (including when Obama toes the oil security line for drilling in our oceans)

[Walk away]

6. But why does the MSM keep lying (omitting the truth) about it?

It's almost crazy that so many people believe in this fairytale!

[obxhead]

7. for the same reason they lie or distort everything else

To be honest I don't know every reason the MSM will not actually report facts. NPR will get close from time to time, as does the BBC, but overall the 'news' is so far from the truth that it should be classified as entertainment rather than news.

[krispos42]

8. In terms of the oil market, it doesn't matter

The oil pumped out worldwide goes into a common pool. So even though we don't import a drop of Iranian oil, if Iran stopped pumping tomorrow the price we pay would soar as the worldwide supply dropped. If ANY oil producer goes offline, it affects the world supply and thus oil prices.

In terms of convenience, the oil goes where it is needed to be consumed. We consume nearly all of the oil we drill. Nearly all of the oil we import comes from Canada, Mexico, and Venezuela.


We're at the mercy of oil producers in general. It's not region-specific.


The US government does get a royalty per barrel of oil removed, though. Ironically, BP owes the Department of the Interior cash for every barrel of oil that is spewing out into the Gulf. That's why they've been despertly lowballing the estimates of the gusher... royalties and enviromental damages are all based on the amount spilled.

[jotsy]

9. Check out OPEC

Doesn't appear that we are a current member, but it might be a handy hoop to jump through to find what your looking for.

[IDemo]

11. The "Land Export Model" is worth taking a look at

We may have no choice in the coming years but to keep every drop for ourselves:

http://eclipsenow.wordpress.com/export-land-model/

- if peak oil measures world oil production declining, the Export Land Model measures and predicts how the world’s sellers of oil will shrink even faster. Oil suppliers can quickly become buyers, joining the ranks of those nations competing in the marketplace for that last barrel of oil.

[ThomThom]

12. It is our oil, we lease the right to extract the oil and they pay a royalty

for ever barrel they take including oil that is spilled that is one reason they are low balling the leak.