Is it really all that heavily subsidized, or is it just less transportation, no import/export terriffs, huge local supply? I am sure the free Saudi gas is subsidized at least some, but I am also pretty sure that the fuel is a lot cheaper at the source. We need to make the US our source.
We will bypass terriffs, stop sending our treasure overseas, create local jobs, probably do a better job with environmental care, and most importantly reduce prices at the pump!
“I am sure the free Saudi gas is subsidized at least some, but I am also pretty sure that the fuel is a lot cheaper at the source.”
The cost of producing Saudi oil is around $.50 to $2.00 per barrel. So, if the cost of crude is 70% of the cost of gasoline (in the news lately), then their gasoline is costing them very little. I think several of the Middle Eastern oil producers have to send their crude out of country to be refined, but their gas could still sell for $.50 per gallon or less without much subsidy. (Unless the cost is being inflated by all sorts of useless middle men taking their cut.)
Is it really all that heavily subsidized, or is it just less transportation, no import/export terriffs, huge local supply?
They simply produce more than they consume. Giving them the luxury of setting a domestic price. I remember when we had that luxury.