Since oil is a fungible commodity, instabilities in oil prices outside the US will cause instabilities and price rises in the US (since a price rise outside the US is simply an incentive to export). Thus the US military patrols the Persian gulf in order that domestic oil makes it to the refinery.

>> which means no more dealing with Venezuela or need for huge defense spending to protect strategic resources across the world.

The problem is that we HAD energy independence when we discovered oil in the Bakken Peninsula and what happened? Our fearless leaders who wanted to be energy independent had a great chance to tell OPEC to go screw themselves and what happened?

They let them go to war with OPEC. We lost jobs, oil companies shut down in droves as the race to the bottom happened. OPEC said it wanted to put them out of business and for the most part, the people in Washington talking big about energy independence let it happen.

I have no faith they will ever keep their word. We had a wonderful opportunity and they let OPEC drive our companies out of business and cost that region thousands of jobs. And in the process, drive up the cost of oil as well.

Oil is traded internationally, no matter how much we produce, its still part of a global market.

If you are energy independent then you can screw the international market. If you can server yourself then you do not have to dance by the music of other producers.

Unless of course you want to play some other game altogether.

So you're suggesting the USA should block (or duty) oil imports, so that Americans have to pay a lot more for their oil just so they can prop up the US oil industry?

Would your own answer to this question be different if you had to pay what oil would actually cost with all externalities included, including but not limited to the gargantuan oil-industry subsidy that is the US defense budget?

I don't think Americans would want that either. People generally prefer taxes that are hidden, and Americans seem to like paying for a huge military.

did we pay for that? i thought we got that on loan

I was talking about world politics, but you are bringing up some petty domestic issue.

The discussion is about the USA.

Indeed. Read between the lines, but especially the last sentence.

Sure, but if the people who own the oil can sell it outside the country for more they will. So the price/demand outside still matters. Unless you're planning on making it illegal to export?

It was illegal to export American crude oil for 40 years. That lasted until early this year: http://money.cnn.com/2016/01/29/investing/us-oil-exports-beg...

Yeah, but the imports still set the price.