1 Explain why United States imports oil despite the fact tha

1. Explain why United States imports oil, despite the fact that there is oil in the United states. use the principle of comparitive advantage. 6 minimum sentences

Solution

The United States has oil, for sure. This oil can be fairly easily divided into different categories based on how difficult, and expensive, it is to extract. As a general rule, the cheapest oil is already being extracted, the most expensive is not, at least yet.  Because of a variety of circumstances, it is cheaper to buy from an outside supplier,

further,U.S. has much more environmental restriction, drilling laws and regulations to follow. The environmental laws, the drilling regulations in Kuwait, are much less prohibitive than in the U.S.

Also notice that the U.S. has more lucrative means of producing revenue. The amount of time it takes to bring a well into production and maintain it, would be more profitable spending the time working a job, earning more money than you would save. The U.S. agriculture and technology markets alone,are more profitable than competing with OPEC.