time to lift the ban on EXPORTING OIL ?
- Thread starter GURPS
- Start date
LibertyBeacon
Unto dust we shall return
You enjoy paying more at the pump, do ya?
Because nothing "guarantees" that is the most economically efficient thing to do. An export ban is an entirely artificial trade barrier having nothing to do with the fact that the best economic use could involve the unrestricted flow of the commodity in either direction at any given moment or place. Transporting costs money and the export ban adds arbitrary costs accordingly.
The increasing oil supply and need to move it around is right now being very good to some of the marine operators and the shipyards that build their vessels. Crowley, for example, has been investing very heavily in the expansion of their fleet of vessels (ATB vessels mostly) to move oil around the US and Carri bean basin.
We've barely begun exporting LNG....but the effects are already showing up. http://www.the-american-interest.com/blog/2014/09/23/u-s-gas-cutting-into-gazproms-bottom-line/
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LibertyBeacon
Unto dust we shall return
Because our oil is almost exclusively shale oil which is more expensive to refine/produce than stuff from elsewhere. In order for that oil to be economically viable to extract and sell on the global markets, that by definition means prices have risen to the point where it is economically rewarding to do so. Furthermore, this would cause a strengthening dollar, which would make all exports (not just manufactured goods, but also oil) more expensive.
Current production of all "tight oil" (which includes shale oil) is about 3 million barrels per day. Total production in US is currently at about 8.3 million barrels per day. I'm pretty sure that 36% and "almost exclusively" are not the same thing.
Some discussion (and guesses) of potential pros and cons here:
http://www.bostonglobe.com/business/2014/09/20/with-production-booming-pressure-builds-allow-exports-crude-oil/F1kKlSk7jBMtLWuolivpDL/story.html
and here:
http://www.marinelink.com/news/exporting-nobrainer-crude377856.aspx
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PeoplesElbow
Well-Known Member
We should keep ours while burning up the rest of the worlds, then when they are left out in the cold we should still keep ours.
Not a bad idea, in theory, but practically speaking, that point is hundreds of years down the road. Maybe farther. Every year goes by, the known reserves of new oil grow and grow, either due to new discoveries or due to enabling recovery technology improvements. The world is awash in oil.
I'm quite happy to give the exporting of it a go..and see what actually happens to prices worldwide and how it affects the economy here at home. It's not like a decision to allow export can't be reversed.
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Larry Gude
Strung Out
Is this an ISIS tread??? We placed a ban on their exports last night...
Larry Gude
Strung Out
Yup. The ONLY way to get more $ out of oil is to artificially limit it.
Larry Gude
Strung Out
That's not the point. Our oil is better, a lot of it. MUCH better. Using it for fuel is like using top shelf olive oil for french fries. It gets used for high end lubricants and premium stuff the crap oil can't be processed for.
SG_Player1974
New Member
Lets get real....
If anyone thinks that releasing OUR oil to the global market is going to have a POSITIVE impact on prices is kidding themselves. It is far too late for any of that!
Do you really think that we can go back to "The way it was?" Too many people have gotten used to the "new" pricing on oil, gasoline, food, etc. and have already adjusted their business plans and revenue handling accordingly. I'm affraid that we are stuck with $3.00+ per gallon gasoline along with the prices of everything else that relies on oil to get it where it needs to go.
If anyone thinks that releasing OUR oil to the global market is going to have a POSITIVE impact on prices is kidding themselves. It is far too late for any of that!
Do you really think that we can go back to "The way it was?" Too many people have gotten used to the "new" pricing on oil, gasoline, food, etc. and have already adjusted their business plans and revenue handling accordingly. I'm affraid that we are stuck with $3.00+ per gallon gasoline along with the prices of everything else that relies on oil to get it where it needs to go.
Who would do that? The refining sector sucks rocks economically; that is why so many have closed or been sold off to minor players in recent years.
Barely more than the knowledge that our LNG is going on the global market has resulted in reductions in natural gas pricing already. Why are you sure it would be different for oil? I'm not sure what the effect might be...but would like to find out by seeing the spigot turned on to find out.