I have to admit to a very limited knowledge on the subject, and would love to become more informed. So, at the risk of sounding like a total idiot, here goes.
If we are suffering from a lack of production of oil here in the US, why in the world do we still sell to other nations? It seems to me, with my simplifed economic knowledge, that if we didnt sell what we have, we would have more for us, thus making things perhaps a bit easier for the folks in California. So tell me folks, what am I missing?
Economics and transportation
There is a lot of oil in Alaska. But crude oil has very little consumer use. It needs to be refined into usable components. There is not much refining capacity on the west coast.
There is refining capacity, and oil, on the gulf coast.
You can build pipelines to transport the crude oil to the gulf coast [a big investment that requires a long term commitment], or you can sell the Alaskan oil to say Japan. The companies that own the oil will do what is best for themselves.
The companies that own the gulf coast refineries will buy the cheapest oil they can, foreign or domestic.
The problems in California are not due to shortages of oil, or gas. They are due to lack of electical generating capacity. If is was just fuel shortage, you could run fuel in by truck, rail, or ship; while you build a pipeline. You can’t do that with electricity. You need the fixed infrastructure of generating plants and power lines. That area grew fast and chose not to increase the infrastructure. Until they build power plants and power lines, they will have an electrical shortage. They are talking about building power plants in Mexico, since California does not want them in their state. Then they will be dependent on foreign electricity.
[The high prices are due to their method of deregulation, but the electrical shortage is not caused by deregulation.]
Okay…I can see the transportation problems here. But this explanation brings up yet another very important question. We want to decrease our dependence on foreign oil and foreign refining. George seems to think that drilling in the ANWR is going to help us achieve this. If we do, in fact, have no cost effective way to refine the alaskan oil, and we will simply sell it to the Japanese, how is this action going to accomplish what our stated goals are? Would it not be better to drill somewhere closer to where the refineries are in the first place? Why drill in ANWR which will only succeed in giving the oil companies more oil to sell to Japan? It will do nothing to alleviate the problem. It will only thicken the wallets of the oil companies even further.