Statistically-minded Oil Price Dispersion Theory

From late 2014 through early 2015, the United States has been experiencing a price drop in oil and crude petroleum not seen since 2009 when one gallon of gas was around two dollars. This kind of thing makes many Americans happy. More money stays in the pocket. Unfortunately this means more money is also leaving the pockets of those who help recover the products from mining and fracking plants. Too bad virtually every course of action that is taken demands an opportunity cost, in this case money and peace. 

At first, the US rose to the number one position in the world for producing the largest yearly yield of natural gas, even outdoing Saudi Arabia and other Middle Eastern countries famous for producing vast amounts of gas etc. We in the US had plenty of this foreign gas, but due to the failing economy, bills to pay, and much needed jobs to fill, we turned primarily to our own land in North Dakota and Texas for home-fracked shale oil. Now there is an overabundance, the Middle East decreases its prices to keep its business dealing with the largest oil consuming nation in the world (us), the US along with Canada continue to produce an ample supply of oil, and no one can find a solid average gas price to keep producers from simply breaking even and/or gaining nothing.

If the western hemisphere can "fend for itself" and keep its oil supply eternally strong, then it should cut off its foreign imports from the eastern hemisphere to restore and preserve its strong economy. "U.S. oil output will surge to 13.1 million barrels a day in 2019 and plateau thereafter," according to the IEA, a Paris-based adviser to 29 nations. (Read here http://goo.gl/tMjUBJ) And it's somewhat of a relief to hear that we only consume 8.8 million barrels a day. It's nice to know that a renowned expert at oil predictions says that we could still end up with four million extra barrels a day. So why are we still doing this business with Middle Eastern oil companies? We don't need them. Shaving off extra oil bought with much-needed US money from another country means that prices should stabilize quite nicely for both local US producers as well as its consumers.

Ignoring the notions that Middle-Eastern based terrorists such as ISIS etc. might benefit from oil we do not purchase and that purchasing oil from these other countries helps us retain more peaceful relationships with their often mis-managed governments, I think that the current American economy could greatly benefit by consuming its own resources of which there is currently an over-abundance and not spending its money on oil that it does not need.