US Oil Boom: Soon to Be Top Producer?

#1

Post by xhrpost » Wed, Oct 24, 2012, 12:23 PM UTC

US Oil Boom: Soon to Be Top Producer?
abcnews.go.com

Re: US Oil Boom: Soon to Be Top Producer?

#2

Post by tocomment » Wed, Oct 24, 2012, 12:47 PM UTC

I wonder if we'll end up joining OPEC? Could there actually be advantages in that?

Re: US Oil Boom: Soon to Be Top Producer?

#3

Post by taumeson » Wed, Oct 24, 2012, 1:55 PM UTC

tocomment wrote: post #2

I wonder if we'll end up joining OPEC? Could there actually be advantages in that?

Wow, I wonder if they'd accept us.

Re: US Oil Boom: Soon to Be Top Producer?

#4

Post by taumeson » Wed, Oct 24, 2012, 1:56 PM UTC

Something for everybody to keep in mind: The US is a huge IMPORTER of crude oil, but a net EXPORTER of refined petroleum products! The amount of crude we make will have an impact on petroleum prices, but not as large as one would think.

Oil's a bit like diamonds. It's artificial scarcity in the US to keep the price high.

Re: US Oil Boom: Soon to Be Top Producer?

#5

Post by simulate » Wed, Oct 24, 2012, 6:27 PM UTC

tocomment wrote: post #2

I wonder if we'll end up joining OPEC? Could there actually be advantages in that?

OPEC is a cartel intended to maintain a high price for oil.

The US has been the second or third largest oil producer for decades, well ahead of all other OPEC countries except Saudi Arabia. See: http://www.eia.gov/energyexplained/index.cfm?page=oil_where

In addition to being one of the largest oil producers for decades, it has also been the largest oil consumer. Therefore it has not been in the US's interest to join OPEC. The US would prefer lower oil prices. There's no reason to expect this will change if the US moves from number 2 or 3 producer to number 1.