There are a lot of US wells already drilled and ready to pump if the oil companies wanted to invest money to get them back on-line, but they don't want to. They would rather keep oil prices high and make more money without spending more money.
There are a lot of US wells already drilled and ready to pump if the oil companies wanted to invest money to get them back on-line, but they don't want to. They would rather keep oil prices high and make more money without spending more money.
In the past, every time oil prices were high and wells were available and oil companies invested a lot of money in developing these wells to drive up supply, the price of oil would come down, leaving them losing money. They have learned their lesson. Now they will not waste effort and money in developing these new leases and simultaneously they will enjoy the high price of oil due to lack of supply - it is a win-win for them and screw the citizens of the US.
Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.
Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.
It is a global market - there is no "selling to the US". Hell, US producers don't "sell" to the US - all their oil goes onto the global market too and the price paid is based on the global market. There is no way to "segregate" oil for just the US.
It is a global market - there is no "selling to the US". Hell, US producers don't "sell" to the US - all their oil goes onto the global market too and the price paid is based on the global market.
Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.
No, the Keystone XL would transport sweet light crude that was marked for export to ASIA and most of the US refineries can not handle sweet light crude. Even so, 800,000 barrels per day is <1% of the daily worldwide production. This was only good for oil companies because they could export more oil but did not benefit the US beyond some jobs in terms of oil independence. That oil would still be on the global market and at 1% you could expect it to reduce oil prices 1%.