Posted on 09/18/2014 5:28:00 AM PDT by thackney
Our trade is in a bad deficit as it is, why not export something?
Importing the cheap heavy oil we already upgraded our refineries to use while we export our expensive light oil helps the trade balance.
If we have so much oil here then why are the gasoline prices (and home heating oil) still so high?
Those foreign drillers can leave if they want. Good riddance.
Obama does everything possible to harm the carbon energy industry. The delusional and ideologue EPA wants to prevent all burning throughout the world.
We wouldn't be producing so much if the price was significantly lower. Those tight plays like shale are expensive to produce. The reason our production is finally climbing is the relatively high prices.
Those foreign drillers can leave if they want. Good riddance.
Yeah, it would be so much better to be sending our dollars to another country instead of keeping the jobs in the US. < /sarc>
We need a glut of cheap liquid fuels. We should either "trade" our "expensive light crude" directly for gasoline and diesel; or ban the export of finished product.
Because the dollar isn’t worth crap.
Believing the demand curve of economics will rule while pretending the supply curve doesn’t exist only works in fantasy land.
Shutting down our refineries that currently produce a surplus of products while we import more crude oil than we need isn’t going to help us either. It helps the trade balance, keeps a surplus of refinery capacity in the US, keeps more jobs in the US. Why do you want to send that work to other countries?
Do you believe plastics, food, cars or anything else would become cheaper if we banned their export? Or would we simply stop producing as much because people don’t invest their money with the plan of losing money?
What good is a healthy bottom line for your industry, if the average American and small business can’t afford your product?
I refuse to spend $100 to fill my gas tank every week. That means I drive less, people drive less. That means transported goods cost more.
That means small businesses fail or don’t start up in the first place.
Employment and wage increases are stagnant and haven’t kept pace with fuel inflation.
Your solution?
Your suggestion won’t lower prices. It would only move the dollar paid to foreign nations. Oil well are not magical machines that produce the same amount forever. It takes constant inflow of investment to keep our production from dropping.
Banning exports will not lower prices. There are two curves in economics.
The way I see it, if we allow exports then the money will go to the US Treasury. The Obama government will have all this money to spend on his communist and homosexual agenda. Our taxes, of course will never go down. Better to deprive the regime of any money. Starve the beast. Go Gault.
What good is a healthy bottom line for your industry, if the average American and small business can’t afford your product?
I refuse to spend $100 to fill my gas tank every week. That means I drive less, people drive less. That means transported goods cost more.
That means small businesses fail or don’t start up in the first place.
Employment and wage increases are stagnant and haven’t kept pace with fuel inflation.
Your solution?
___________________________________________________
There are thousands of by-products produced by the oil industry. Not just gasoline.
http://www.ranken-energy.com/Products%20from%20Petroleum.htm
Nixon’s 1973 crude export ban was intended to prevent oil producers from circumventing his socialist price controls. Politically, the ban channeled popular anger at oil producers resulting from the increase in pump prices, though the cause was OPEC, not greedy oil barons. That is still the political equation today. Even on FR, most are more concerned with what they personally will pay at the pump tomorrow than the long-term economic health of the nation. Refiners egg this thinking on, since the ban increases their crack spread. The consumer is the unwitting dupe in this, thinking that he is forcing oil producers to give him a fair shake at the pump. The reality is that all bans, embargoes and tariffs benefit a favored few. The crude export ban is a cruel joke on the consumer. Real life examples will help break this monster. Economic theory goes right over their head.
Yes of course, it would be better to drive down US production so OPEC can pick up the slack and we fund their governments instead. < /sarc>
Too many ignore the long-term economic health (more US production) is long-term lower prices, everything else being equal.
The reality is that all bans, embargoes and tariffs benefit a favored few.
BTTT, the government should not be selecting individual winners and losers in the market.
Real life examples will help break this monster.
Absolutely. Ban the export of wheat this year and wheat prices will drop. But don't expect the farmers to plant the same amount of wheat next year, and the prices are going to skyrocket and for longer than a single season. The oil is the same, but a long time frame.
U.S. Has Some of the Cheapest Gas in the World
Based on the price per gallon, the US is 44th out of 55.
Based on the pain at the pump price, which is relative to income, the US is 50th out of 55.
These are averages so you are probably paying more or less than the US average. And your income is probably more or less than the average US income
Easing this ban might be a win for Big Oil, but it would hurt American consumers. ... We must continue to keep domestically-produced crude here to lower prices for consumers ... Allowing for expanded crude exports would serve only to enhance the profits of Big Oil, and could force U.S. consumers to pay even more at the pump.
And several of those cheaper than us use tax dollars to subsidize the fuel cost.
I never suggested that should happen.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.