I assume you are referencing the POTENTIAL that US refined products would be uncompetitive with those produced elsewhere?
I don't believe we export a lot of refined product now, but please correct me if I'm wrong.
If so, we just extend the Import Tariffs to refined products as well.
These are strategic, essential resources.
If we are not smart enough to protect them, we're probably not smart enough to be a country.
Not quite 4 million barrels a day.
http://www.eia.gov/dnav/pet/pet_move_exp_dc_NUS-Z00_mbblpd_m.htm
Now we have offsetting imports, different product balances, different locations in and out.
And a large petrochemical industry as well.
And now you want it to be cheaper to refine the products in Mexico and only import the portions we need, rather than import the full barrel, keep the refinery jobs and export the selected surplus.
You also will crush our imports with Canada by setting a “bottom” price for oil substantially above the market price. Their oil (bitumen) is low grade and cost more to refine, so it sells for less. If we have to pay a premium, why would we buy the bottom barrels?
Stop looking for the federal government to help industry. It can only help by reducing their impact, not trying to select winners and losers.
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The industry is plenty capable of surviving this down turn, just like every one before it. I’ve already had cuts, probably have more before it is done. But a conservative doesn’t look for the federal government to get deeper in their business.
The most terrifying words in the English language are: I’m from the government and I’m here to help.
- Ronald Reagan