Posted on 01/31/2016 3:19:31 AM PST by Enlightened1
America is wasting little time getting back into the oil exporting business.
Just weeks after Congress lifted a 40-year ban on exporting oil, the first shipments of the black stuff left U.S. ports for Europe.
The first freely-traded shipments of U.S. crude are symbolic of the country's newfound role as a leading producer of oil. America's entry into the world market can also be viewed with relief by those worried about potential supply disruptions. After all, many big oil producers are located in volatile parts of the world susceptible to geopolitical shocks.
"The fact that producers have free access to the global market will make it easier for U.S. supply to respond to disruptions around the world," said Jason Borduff, a former energy adviser to President Obama who is currently a professor at Columbia University.
America officially banned exports in 1975. It came two years after an OPEC oil embargo that banned oil sales to the U.S. had sent gas prices skyrocketing. Newspaper photographs of long lines of cars outside of gas stations became a common and worrisome image.
Fast forward 40 years and the world has changed drastically, with booming U.S. oil production from the shale revolution creating an epic supply glut that recently sent oil prices below $30 a barrel.
Some of that American oil is now finding a home overseas. On New Year's Eve ConocoPhillips (COP) and NuStar Energy (NS) announced what they said was the first exports of U.S.-produced light crude oil since the ban was lifted. The companies shipped oil pumped from the Eagle Ford Shale of Texas.
Other shipments believed to be containing oil pumped from the U.S. have left for destinations in Europe in recent weeks as well.
(Excerpt) Read more at money.cnn.com ...
Correct, oil is a valuable finite resource, America loses and the billionaire Marxist globalists win, again.
“Oil companies agree to a plan for a CO2 tax and, bada boom, oil companies can now export oil”
That turns my stomach. If you have a source, I’d appreciate a link.
Oil companies and the congress are committing a huge faux pas with very little to gain in return. Politics and economics are forever intertwined. The public relations nightmare this is causing is not worth the little (tiny )extra profit. Idiots.
Excellent post.
Frankly, the only good rationale that I can imagine for government intervention in export/import markets is national security.
If Reagan (or Cruz?) were President, he might take the very actions we are taking so as to undermine our enemies. As it is, we can credit our oil producers, and hydraulic fracturing, with upsetting the OPEC apple-cart.
Right with you on the gut feeling on this.
Baraq has a pattern of harming our country.
He allowed this to go forward. Since we don’t know all the real reasons behind this, it is safe to assume that it will be detrimental to us.
Wrong kind of oil. It is a myth invented by the media that oil is completely fungible. Most of our refineries are designed to expect a higher grade of crude oil than we produce here. So we'll be buying foreign oil no matter what, at least until we can get the Democrats to let us build new refineries.
The fact that we couldn't export oil for so long has been a deterrent to domestic drilling, which in turn has contributed to our global trade imbalance. Isn't governmental economic management wonderful?
I think technology stole a march on the communist-in-chief and this is happening despite his efforts, not because of them.
Exporting it now when the price is at a historic low does not seem very smart.
Not at all.
Looking only at crude oil imports, we reduced our imports by 23% from 10.1 mmbpd to 7.8 mmpbd.
4-Week Avg U.S. Imports of Crude Oil
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRIMUS2&f=4
But the reduction in our total NET petroleum imports and exports, counting products as well as crude oil, the reduction is massive.
61% reduction in net, from 11.2 mmbpd down to 4.3 mmbpd.
U.S. Net Imports of Crude Oil and Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTNTUS2&f=M
Yes! And US private property laws, along with what's left of states' rights.
In the past 5 years:
US production grew by 75% (4.1 mmbpd)
Russia Production grew by 13% (1.2 mmbpd)
Saudi Arabia Production grew by 5% (0.5 mmbpd)
In the past 3 years:
US production grew by 51% (3.2 mmbpd)
Russia Production grew by 2% (0.2 mmbpd)
Saudi Arabia Production grew by 3% (0.3 mmbpd)
One would have expected our .gov to get rid of regulations and environmental issues to help create more refineries here since the ME is so fragile, we didn't.
Finally, part of the push for the additional Keystone lines from Canadian was for being able to export those resources to higher bidders overseas.
Once oil prices go up again, I wouldn't be surprised if the debate of crude oil comes up again.
It is a fungible market. Why do you believe the US pays below market rates, even lower than cost of moving oil around the world?
Bookmark
Your so called representatives are so corrupt and so stupid. Our oil reserve ban for export for a reason — to secure our economy for foreign treat. Especially the oil prices are so low now, there are no incentive for us to sell our oil reserve, except for personal (political manure.)
“Exporting it now when the price is at a historic low does not seem very smart.”
With prices so low, some of our producers are struggling. Opening up export markets may keep them from going under. It will certainly mean more jobs.
With prices low, I think this is a good time for the US Government to buy domestic oil for the Strategic Petroleum Reserves. Again, it helps us producers and their employees, and it gives the country a safety net in case of a future oil crisis.
I think the SPR is maxed out. At least it was a year or so ago when I checked last.
You da man
And shut down existing refineries as well.
“It is a fungible market. Why do you believe the US pays below market rates”
You’ve presented data that shows that the US has been increasing production of oil faster than anyone else. Our producers wanted to export, but it was illegal.
With the increase in domestic supply (that cannot be exported), I would expect US prices to be lower than world prices. On the other hand, decreased imports could match increased US production barrel for barrel, suggesting a world-wide decline in prices. So even if oil were completely fungible, it’s a little bit complicated.
Do you have data on changing oil prices around the world?
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