We are exporting fuel due to economics. Self-imposed economics.
With demand down, the oil companies have shut down their most inefficient refineries. For the most part, they were in the Northeast.
The result left the Gulf Coast long on refined products, the Northeast short.
Normally, that would be solved by shipping the Gulf Coast's excess production to the Northeast. However, there is no pipeline capacity available to handle the task -- environmentalists having stalled expansion of the pipelines serving this route.
How about shipping it by tanker then? Too expensive. Because US law mandates that all shipments between US ports must be handled by US flag ships and fully unionized crews.
It's actually less expensive to a.) export the excess refined products from the Gulf Coast to Caribbean markets and then b.) provide the Northeast with refined products shipped from Nigeria.
A significant expansion of Colonial’s main gasoline pipeline, originating in Houston and connecting Gulf Coast refineries with markets across Colonial’s system, has been approved by the company’s Board of Directors.
http://www.colpipe.com/press_release/pr_114.asp
December 21, 2011
A 100,000 BPD capacity increase to the mainline serving the Northeast was put into operation earlier this year. This line begins in Greensboro and serves the Philadelphia, New, Jersey and New York markets.
A 75,000 BPD capacity increase to the distillate mainline is under way, with 20,000 BPD accomplished and 55,000 BPD due online by mid-2012. This line originates in Houston and terminates in Greensboro.
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Now combine that with a falling demand.
Another example (the list is countless) of government regulations killing business and the economy.
We’re drowning in red tape and government control, and Obama represents more of it. Exponentially more.