PV Gap

Floyd Said:

Why Having World second reserve of oil USA refuses to boost production to lower gas prices?

We Answered:

The US is not always the biggest in the world. Saudi Arabia is the biggest reserve of oil in the world,second by Canada oil sand and Russia. The new biggest has been found in South Sudan and Cambodia. The US might be next.There are many reasons why it does not boost production to dump the world oil market.
1. Oil reserve for consumption in the US does affect the world price right now, because it is the biggest consumption in the world. The sinking reserve in the US means price will go up soon.
2. Oil spills in the Gulf have stopped almost everything concerning oil production in the US territory.
3. Oil production in the US is expensive, compared with other countries even Canada.
4. Conflicts in the Middle East, especially with Iran, has forced the US to keep oil on its soil for security purpose.
5. The value of the US dollar has affected oil price more than the reserve under the soil of our territory.