This is what may happen when there is to much oil on the market.
US producers accuse Canada of "dumping" oil South of the border
A small group of U.S. oil producers has infuriated some in Alberta's oil patch after it persuaded the Oklahoma Attorney-General's office to investigate whether Canada is illegally dumping oil south of the border.
Faced with a severe drop in the value of their own oil, a trio of Oklahoma oilmen has made the case that Canadian petroleum producers are breaking international rules by selling their products below production costs into Cushing, Okla., a major U.S. oil supply hub.
In recent months, Oklahoma oil producers have gone from being able to fetch a premium for their product to having to sell up to $12 (U.S.) below the New York Mercantile Exchange price for crude. They say a glut of cheap Canadian oil is partly to blame. They argue that Canadian crude costs $60 a barrel to produce, and is being sold for two-thirds that price.
"The question is, are the tar sands producers shipping oil into the mid-continent, and specifically in and out of Cushing, below their cost? And if so, is that legal?"
