What i dont understand is that i've always heard American drilling companies cant make a profit when oil goes under a certain amount, but now that its high as hell and only going up wont some of the domestic supply offset whatever we lose from Russia?? Or even at a higher price we still cant extract enough to make much of a difference globally??
hopefully a 6 energy cert coli breh can come drop some knowledge
Not how it works breh.
The problem is that everything you (and most people for that matter) know/understand about oil is a combination of half truths, propaganda and wishful thinking. Yes, countries might import more oil from one country or another...for instance most of our oil comes from canada for obvious reasons (distance/good trade relations etc) but the price for crude oil is determined by the world market. No different than gold.
The propoganda/wishful thinking was the idea that if we encourage greater oil production here in the US that prices would collapse . The inference being that all of this crude oil would flood the world market and drive the price down. But remember, bc it's a world market if supply gets too high then it's easy for countries like saudi arabia, russia etc to limit their own production to keep prices high.
Even more importantly is that a lot of the new production that has come online the last 10 yrs or so has been due to fracking. The fracking industry used propoganda/wishful thinking (let us drill and we'll lower gas prices) to convince ppl to let them operate, but now that prices have started to rise they are in no hurry to increase production (which would lead to lower prices/profits). Most of the companies in that space were almost wiped out when oil prices plummeted. Many companies went out of business and the rest were gobbled up by whoever survived. They are not in the business of working to give us cheaper prices. Now that they're on top they will now start directing these outsize profits to their shareholders.