Posted on 05/26/2022 7:31:28 AM PDT by bitt
The Biden administration appeared to reverse its previous position that it wouldn’t consider an oil export ban Tuesday.
“I can confirm the president is not taking any tools off the table,” Energy Secretary Jennifer Granholm remarked, Reuters reported.
“If you had a ban on crude oil exports, because you’re cutting off supply to the global market, you are going to have higher global crude prices and higher global refined product prices that would be fed through here,” said Garrett Golding, a business economist tasked with analyzing energy markets at the Federal Reserve Bank of Dallas.
EEnergy Secretary Jennifer Granholm said the administration hasn’t ruled out a petroleum export ban Tuesday, an apparent reversal of its previous position on the policy.
Granholm’s comments appeared to suggest President Joe Biden was open to both an oil export ban and export ban on refined products like gasoline or diesel fuel. The energy secretary promised in December that a crude oil export ban was off the table during a meeting with oil industry officials, adding that she didn’t “want to fight” with domestic energy producers.
“I can confirm the president is not taking any tools off the table,” Granholm remarked Tuesday during a visit to Louisiana, Reuters reported.
However, market analyses of the 1975 federal oil export ban, which was repealed in 2015, suggested the policy had a negligible impact on prices and, sometimes, led to higher domestic energy prices. Allowing oil exports incentivizes domestic production, ensures global market stability and boosts the U.S. economy, according to multiple studies.
“Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports,” the Energy Information Administration (EIA) concluded in a 2015 report.
(Excerpt) Read more at amp.dailycaller.com ...
What we need is a tariff in IMPORTED crude. The makes domestic oil even more valuable hence more domestic supply will be economically feasible IF THE GOVT GETS OUT OF THE WAY..
DRILL OUR OWN———
KEEP OUR OWN————
REFILL THE STRATEGIC RESERVE————
She’s as qualified as Buttigeig is in charge of our supply chain.
Bunch of gobbledygook while they wreck everything.
Note: They have not enacted this policy yet, but AFAIK it's not a ban on exploration/drilling/production, but it would make it harder to sell "less desirable" oil. They could always make it worse than they are revealing now.
Let’s see: Oil Ban = Lower Gas Prices
So then: Pouring stacks of money out the window = greater wealth.
Got it?
Bringing back the oil export ban will penalize the domestic industry by depriving them of a market open to all other global producers. Global price will go up but domestic prices will not come down. We will still have to compete with other consuming countries for available global reserves.
Because domestic producers will lose access to this market, it will cause the economic destruction of a huge amount of domestic energy infrastructure, such as export terminals and pipelines constructed to export Eagle Ford and Permian oil. Domestic producers are already having a difficult time finding pipelines to get their production to market. This will only get worse. So by not allowing the market to efficiently allocate assets, the government will penalize US producers and punish US consumers, all at the same time.
Bingo!
so they are going to stop selling off our oil reserves ?
Dumbass premise.
If anything that they did lowered gas prices right now, it would be a concession that “Putin’s Price Hike” was all BS.
No, US oil prices pegged to the international market will not go down by limiting exports. It will probably cause a rise in crude oil prices.
Elimination of market disruption and the volatility of Xiden administration policies would stem the rise...
...but it ain’t gonna happen.
What is the definition of insanity?
Doing the same thing over and over and expecting a different result each time.🙄
The USA shut down over a million bbl per day in refinery capacity during the demand drop off during the pandemic. Those refinery that were shut are not coming back online. Most were disassembled and the ones that were not it’s too expensive to bring them back to working order. The limit is not crude oil the USA is exporting oil there is plenty of supply the bottleneck is the refinery capacity and that is a structural problem. There is no drill baby drill out of this bottleneck. We need to import at least a million bbl of REFINED products to fill that shortfall.cutting off oil exports would just raise the prices of imported refined products more. Worse would be to ban the export of refined products as the other producers would follow suit cutting us off from imports. We have a net import flow of refined products gasoline and jet fuels. We export diesel because Europe used mostly diesel they have a surplus of gasoline. The short term solution is to subsidize the opening of shut down refineries the oil companies nor bank investors will fund it there is no long term upside. Then get the EPA to approve expansion at existing plants with modern equipment again this would need subsidy wall street nor the VC capital industry is funding fossil fuels anymore that’s just the world we live in.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.