LiLimit Crude Imports: Perhaps Eisenhower Was On To Something

rigzone ^ | Monday, January 25, 2016 | Deon Daugherty

[Rabin]

So what would happen if a modern-day president took the Eisenhower model and, ceased crude imports. The price shock to the energy markets could take domestic crude to $140 before it broke the back of our World Crude Oil Cartel.

[Rabin]

Relying on North American hydrocarbons – would develop American and Canadian reserves and establish controlling pressure on OPEC and Co.

Rab

[TigerClaws]

Limit imports to create energy independence = good idea.

Also, bring back Operation Wetback!

[aft_lizard]

The problem would be how long could our economy withstand such pressures while the world enjoyed relatively cheap oil.

[NYRepublican72]

No thanks. I’ll pass on $140 a barrel gas.

$2/gal gas is too expensive IMHO.

[Paladin2]

Way too simple. Both crude and finished product need to be included in any gooberment scheme.

[Fhios]

I thought oil and gas ran 2-3 times higher in Europe than in the U.S. Mainly because of they heavy tax there on it.

[Chode]

$140???

[Smokin' Joe]

that’s $140/bbl crude oil. Not $140/bbl gasoline.

[Newbomb Turk]

OPEC has really ceased to exist in that it has lost its ability to control the world market supply of oil.

Saudi needs $66 a barrel oil to stay afloat and I don't see that happening any time soon.

[Pelham]

“OPEC, the Organization of Petroleum Exporting Countries, was formed in 1960 as a response to a precipitous drop in the world price of oil. The drop resulted from President Eisenhower’s strategic decision in 1959 to limit U.S. oil imports. Why did he do this? Simple; he realized that no matter who owned the oil in the Middle East, it would always be available on the world market. He had already rejected Great Britain and France in their 1956 war over the Suez Canal saying: “Let them boil in their own oil.”

[nickcarraway]

Eisenhower had a stutter?

[nickcarraway]

Everyone who think oil is cheap because Saudi Arabia is “overpumping” is just ignorant. Oil has ALWAYS been cyclical. Not to mention the dollar. Saudia Arabia can’t do anything about it.

[RockyTx]

more crap from TIRPO..

those people are rich enough,
really.

[who_would_fardels_bear]

When they mention the companies that are fracking I never hear them talking about the BIG OIL companies.

Is it the case that a lot of the real work of buying up land, drilling, and hauling oil is being done by small companies. That these small companies had to go into serious debt in order to build up fast enough to compete with the other little companies, and that when the bust and bankrupties come, the hedge funds will swoop down and buy up all their assets at pennies on the dollar?

Meanwhile the BIG OIL companies are just skimming profits off the top not caring as much whether it is fracked oil or conventional oil?

Did I get that right?

[wiggen]

All that would do is create two markets. If our demand went up our prices would rise. The rest of the world would continue to be awash in excess supply. We would have $50 per barrel oil and say the EU would have $25 per barrel. It would be a virtual subsidy coming out of your pocket.It would also hasten the demise of the dollar as the currency of choice and lead to much higher inflation. Everything would cost more if we lost our reserve status and i;m not even discussing the probable retaliatory measures from other producers.

[SaxxonWoods]

You don’t have to cease them, you just have to adjust them to achieve a price range that keeps our companies in business, our people in jobs, and affordable gas in our cars.

It’s known as a happy medium. It’s been that way more than not for about 90 years.

[momincombatboots]

Great analysis. People forget Saudi oil is light, sweet, easy to refine. Just to line Wall Street pockets... How about not just not no.

[taildragger]

The more I hear about Ike the more I think he is so under-rated at a POTUS it isn't even funny.

We should consider something like this on moral grounds, but we have no morals. On the moral grounds that part of the world treats their women like crap, their justice systems are barbaric, they will not let you practice your religion when you visit or let them build their houses of faith and start up in their countries, and they are all Anti-Semitic.

I vacillate on this and maybe I am in a cranky mood today but why in G_d's name are we selling them F15's F16's or any arms for that matter. Frankly I have had it with that part of the world, just walk away....

So let it rise, The Trucking Industry will go LNG / CNG sooner as will other on road and off road vehicles and work equipment for starters and eventually the prices will come down.

[taildragger]

And how did that deal with the Devil that Kissinger made really work out for us in the long run? The blood and national treasure lost? I am sorry to be in a cranky mood here, but in anything in that region worth spending any time or energy on, just walk away and do our own thing divorced from their dysfunctionality.

[DugwayDuke]

“You don’t have to cease them, you just have to adjust them to achieve a price range that keeps our companies in business, our people in jobs, and affordable gas in our cars.”

What a wonderful idea. Let the government determine the price of oil. Considering that global warming nutcakes run the government, what do you think the price of oil would be? It won’t keep our companies in business, our people in jobs, and gas certainly won’t be affordable.