Dirty Oil

With four times as many oil rigs pumping domestic oil today than eight years ago and declining domestic demand, the United States is awash in oil. In fact, the U.S. exports more oil than it imports, according to the U.S. Energy Information Administration - and has done so for nearly two decades.

The country's oil industry is primarily interested in who will pay the most on the global marketplace. They call that "energy security" when it suits, but in reality it is "oil company security" through maximizing profits, say energy experts like Steve Kretzman of Oil Change International, an NGO that researches the links between oil, gas and coal companies and governments.
~ from U.S. Awash in Oil and Lies, Report Charges by Stephen Leahy ~

The focus of this article is on the Keystone XL pipeline proposal, but I'm going to let that slide. I am far more interested in the assertion that the US is awash in oil and that we export more than we import. If this is true, then why do gas prices go up when there are hostilities in OTHER oil-producing countries?

When major attacks were going on in Iraq or Libya, the oil industry told us that prices would go up because of limited and/or interrupted supply. We heard this same refrain each time OPEC decided to reduce production. But why does this matter if the US is "awash" in oil?

I'll be the first to admit that I didn't always pay attention in Econ classes, but I do think I clearly remember the major rule. Supposedly, when there is more supply than demand, prices go down. When there is more demand than product, prices go up. So, why is it that with decreased demand for gasoline the prices are going up?

If you are an oil company exec, I'd appreciate an answer and I mean right now!