[Toddsterpatriot]

I thought the US has now gone completely insane if we would give China control of a major source of US oil.

Unocal produced less than 500,000 barrels a day in the first quarter. I think we import 12,000,000 barrels a day. They are hardly a major source.

[steveegg]

Unocal produced less than 500,000 barrels a day in the first quarter. I think we import 12,000,000 barrels a day. They are hardly a major source.

That's a naiive statement on 3 points:

• Somewhere north of 2% of the entire daily consumption (roughly 24,000,000 bbls/day) is not insignificant by any stretch of the imagionation.
• That 500,000 bbls/day is produced at the cost of production; its replacement would have to come from the open market at the higher market prices.
• Outside of Saudi Arabia (which is at best neutral to the US and a member of a cartel that is all-but-openly-hostile to us), there is currently no excess production to be had on short notice. That lack of excess production is one of the major reasons why oil prices are so high and every little jitter moves them disproportionately.

[TAquinas]

"Unocal produced less than 500,000 barrels a day in the first quarter. I think we import 12,000,000 barrels a day. They are hardly a major source."

I'm no expert on this issue here.

But in terms of percentage that is a 4% loss, or an additional 4% that needs to be imported. Now, let us assume that we did not lose this 4% and, instead, gained an additional 4% in imported oil. Now the difference is 8%, which I think it's pretty significant. Repeat the scenario and now it becoems crucial.