"The price of oil is far higher than is justified by the cost of getting it."

That's exactly my point. The market sets the price of oil, not the production costs. A great, shallow pool of easily recoverable oil discovered in CONUS would sell for the same price as oil imported from somewhere else. Perhaps there would a break on the shipping costs, and there would probably be price adjustments for its quality, but you can be assured we wouldn't get it for the cost of recovery + 10%.

If the price of oil fell after a big domestic strike it woud only be because we could undercut foreign producers. But if foreign sources started drying up we wouldn't sell our oil cheap here and then sell the rest overseas for high prices. It would sell for the same price everywhere.

As for your second point, I concede your research. My information was much older, and probably wasn't correct even back when I heard it.