We need our Government sometimes to form protections for our industries, not as favors to political cronies but to emerging industries that are under attack by outside forces.
I have been following OPEC and Saudi Arabia news for more than 5 years. They see emerging US oil production as a lethal threat to their existence.
Saudi Arabia who leads OPEC did not cut their production as oil collapses because they are playing a game of Russian Roulette and hoping the newly energing US oil drillers will fold first.
This article presents the break even point of US and Canadian oil drillers. Saudi Arabia intends to undercut that break even point and hope to see the newly emerging production collapse.
A Congressional moratorium on crude imports below the domestic break even point which is about $35 a barrel will allow Americans to enjoy cheap gas and oil as well as protect the nascent oil drilling industry and all the jobs that go with it. This is not any different than what the Founding generation of the US did with respect to protecting domestic industries.
This government action is supportable by conservatives because it benefits all Americans and not a segment that is better politically connected including those bought off by the Saudis.
Libertarians would view such government protection as against free market principles. But it is not against free markets as it is aimed at OPEC trying to collapse the new US oil activity.
We need our Government sometimes to form protections for our industries NO! Just as in previous down turns, our oil production industry will survive. Prices down at $35/barrel in 2009 didn't keep our industry from climbing to the production rates of today.
A Congressional moratorium on crude imports below the domestic break even point which is about $35 a barrel will allow Americans to enjoy cheap gas and oil as well as protect the nascent oil drilling industry and all the jobs that go with it.
Thank you for choosing a number for the discussion. So if oil drops down to $30 a barrel (highly doubtful), you want Valero to be forced to pay $35 a barrel to Venezuela to keep their refineries running at capacity?
Do you understand there is not one price of oil, even in the same location? Different qualities of have different prices. Even the same refinery will buy oil at different prices to create a blend of the quality they produce most efficiently at.
This government action is supportable by conservatives because it benefits all Americans
I can tell you don't work in a refinery. Raising our domestic cost of refining above those in other countries will cost jobs.