The key for the last 5 years is not what we do or produce. We're kicking ass. The ongoing problem is not about drill baby drill, though could be related to refine baby refine, as our refining capacity and age of our refineries, along with the ones shut for various reasons in the last, has had an effect. More modern refineries are hugely expensive and take 5 years plus to get on line. At the same time, oil industry also competes with expanding renewables. So, nobody in a hurry to increase refine capacity.
But, the snag is the lower production levels of the other oil producing countries, to control volume on international market, in order to keep supplies lower, worldwide, to keep price up. They can get better price at lower volume, at significantly lower cost. Could one or more of them outproduce us with relative ease? Yes. Is it in their financial interest to do so? No.
So, here we are with historic production in our country, selling on the international market, while the other oil producing countries (some government controlled) withhold from the market, have lower labor, construction, drilling and oil related infrastructure cost, but getting premium dollar, and have the ability to raise price at whim.
This is just my take on it.
It be complicated.
oilprice.com
