Much of our new shale oil production has been light and sweet. Exporting this more valuable crude oil while importing cheaper, lower quality crude oil would help our trade balance while spurring more investment in the US.
Links to related stories at the source.
Fuel prices will really fall if the EPA was gotten rid of.
It’s almost like there was some relationship between supply, demand, and prices.
“... gasoline prices would be 1.4 to 2.3 cents less per gallon between 2015 and 2035 ...”
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I can save between 1 1/2 and 2 1/2 cents per gallon in the next 20 years?
Some forecaster has a very sharp pencil, indeed.
The issue here would seem to be lack of U.S. refinery capacity. Our regulatory burdens make new construction and ongoing compliance a nightmare.
Ergo, the regime and it's leader, "skyrocket" Ø, will do what it can to prevent exports.
Fat chance.
Its no surprise that the American Petroleum Institute would put a very positive spin on this. Would anyone expect them to say that exports might result in some bad economic side effects?
Whatever, but IMO its a good idea to protect yourself by having some oil related stocks/ETF's. If crude shoots upward up, there's some financial offset against rising oil prices.
Interesting article; thanks for posting. FYI, here's one trader's view....
http://finance.yahoo.com/blogs/breakout/why-crude-could-gush-over--150-192338627.html
But of course gasoline prices once drop with crude prices rising. Any fool knows that. It's basic economics, the more you pay for your stock the less you charge for your product. I am surprised we needed a high power oil producer study to tell us this.
Increasing supply usually DOES lower prices.
So in other words a drop of between one third and two thirds of one percent. Like that’ll happen.
Just a little general info:
Crude oil is subdivided into varying percentages of different hydrocarbons, separated into “distillation fractions”.
If a particular crude oil is “light”, it has more of the more desirable and volatile hydrocarbons, like gasoline. If it is “heavy” is has more of the less desirable hydrocarbons.
“Sour” and “sweet” mean how much sulfur is in the crude oil. More sulfur is harder to refine, and more prone to clog engines, so it is less desirable.
Until recently, nobody wanted to refine heavy, sour crude oil, even though there is a surfeit of it in the world, so it is very cheap.
What’s the big rush on pushing down worldwide oil prices.
In this case high oil prices works to the advantage of the USA—because high oil prices make it possible to explore hard places with new techniques.
We’re not talking about an indefinite period.
For example, I don’t see why it wouldn’t be wise to hold off exporting for another three years —or enough time to get the costs of drilling in the permian basin and oklahoma.woodford down to where price cuts won’t kill production.
Heck I’m starting to read reports that the amount of oil in the Tuscaloosa basin in Louisiana and Mississippi Rivals that of the baaken but its still expensive to get out.
Lower oil prices will clip Putey’s wings. Its all good.
Soooo,....EXPORT!!!!