Why the US prefer lower price of oil?

May I ask why the US prefer lower price of oil? Since the USA is already an export country of oil. Too much low price is negative for the oil instury of USA.

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8 hours ago, TOM YIN said:

May I ask why the US prefer lower price of oil? Since the USA is already an export country of oil. Too much low price is negative for the oil instury of USA.

There is a world beyond the oil industry. I know that's hard to believe here on Oil Price. Com 😄

Anyone manufacturing or running services will prefer a lower oil price (exception being manufacturers and service industries heavily reliant on Oil (and gas)  

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1 hour ago, NickW said:

There is a world beyond the oil industry. I know that's hard to believe here on Oil Price. Com

that is a flat out lie. 

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15 hours ago, TOM YIN said:

May I ask why the US prefer lower price of oil? Since the USA is already an export country of oil. Too much low price is negative for the oil instury of USA.

Because:  We see individual consumers first.  We like to see lower prices at the pump when we fill up our cars/trucks/motorcycles/boats/snowmobiles/lawn mowers/ATVs/etc.  We like to drive, so much so that we sometimes take long "drives to nowhere in particular" just for the fun of it.  We drive relatively long distances to work and play.  We expect our industries to become efficient and deal with the cost of doing business; we like them to think of the consumer first (many times they don't, but we like them to).  We grew up with low prices and would like to see them again, relatively speaking.  We don't like buying oil from other countries, and higher prices makes us feel like we are getting ripped off, and that we might very well be funding terrorist activities as well (Oh no you don't!).

As @NickW hinted at, the U.S. economy is made up of many industries.  So for the country as a whole, we can see lower profits in one area and have other areas that make up for the shortfall.  Oil is one of 100s of other industries, with many that are similarly large.  We consider gas to be as much of a basic daily expense as bread, milk and eggs, and expect the price to be as low as possible.

Finally, the export of oil, for all the reasons above, does contribute to our national income but is not the overwhelming factor in our economy that it is in many other countries.  The oil companies and their investors (and their speculators) care very much if they capture those profits, be we as a people are not that concerned at all; we'd rather just be reliant on oil produced at home, sold/purchased at home, and used at home.

I have tried to address the OP's question only; not whether oil is great or anything else (can we please not turn this into an ICE/EV debate?).  Anybody else is free to add their reasons to the list that I have missed, and I'm sure there are many.

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(edited)

On 12/7/2018 at 10:28 AM, TOM YIN said:

May I ask why the US prefer lower price of oil? Since the USA is already an export country of oil. Too much low price is negative for the oil instury of USA.

The USA is a huge country, and (surprisingly) relatively lightly populated for its size.  It therefore is reliant on cheap transportation fuels to make it all work. 

The USA is still a large manufacturing country.  Its industry relies on cheap power to make it all work.  Most of that power is in the form of electricity  (some in heat, both weather heat and process heat), and lots of that electricity is produced by oil, and lately by natural gas.  Cheap power means a robust manufacturing sector.  A strong sector means prosperity, and in some sectors great wealth. 

The vast distances make the USA reliant on air transport much more than in other societies, excepting perhaps Russia. Air transport needs lots of cheap liquid fuels.  When kerosine gets expensive, the air carriers end up in the bankruptcy courts, unable to operate.  The USA also needs lots of air freight to operate. 

The USA is a technological society.  It is not as concerned with prices of oil today as you might think, as the technology is constantly evolving to get more oil (and gas) at lower costs.  So if the sales price drops, it can be and has been countered by drops in the costs involved. Let the price of oil fall; the USA will do better for it. 

Edited by Jan van Eck
typing error
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On 12/7/2018 at 3:28 PM, TOM YIN said:

May I ask why the US prefer lower price of oil? Since the USA is already an export country of oil. Too much low price is negative for the oil instury of USA.

The same reason many countries prefer lower oil prices and I can draw off personal anecdote. 

We fill up our car every week. Our fill is about 25 litres, with us being evil people who drive a hybrid. Anyway petrol was 5 pence a litre cheaper this week compared to last. Net result is my wife and I are 1.25 better off. 

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