Posted on 10/14/2022 6:00:54 PM PDT by TigerClaws
U.S. refineries are preparing themselves for the possibility that President Biden could impose a ban on fuel exports after the White House dangled the threat of the ban in front of refiners. No action has been taken to date, but with the mid-terms coming up and fuel prices continuing to rise, this could soon change.
Earlier this month, the White House requested that the DOE assess the potential impact of banning fuel exports – including gasoline, diesel, and other refined petroleum products. The move suggested that President Biden may be preparing for a ban. This comes ahead of the mid-term elections, at a time when Biden is concerned about fuel prices rising even higher, and as the U.S. public battles with growing inflation levels and general economic uncertainty.
In August, the U.S. Secretary of Energy, Jennifer Granholm, addressed a letter to U.S. refining companies pleading with them to increase their domestic inventories of gasoline and diesel and to shift focus away from exports. In her letter, she pointed to the potential for “emergency measures” to be taken if they could not achieve this goal. In October, she suggested that restrictions on energy exports were a possibility, and although they were not being considered “at this time,” that may change if deemed necessary.
Refineries across the country are uncertain about whether Biden will call for a ban on fuel exports in a bid to manage high gasoline and diesel prices. Due to the ongoing insecurity, U.S. refineries are now putting contingency plans in place to be prepared for any sudden decision from the White House. - ADVERTISEMENT -
One oil executive explained the situation: “We don't have a place to put excess fuel in the U.S," adding, "We would have to slow refinery runs to make less diesel and gasoline.”
(Excerpt) Read more at finance.yahoo.com ...
Was that the big bet that markets will tank?
I saw a story on that earlier today.
Original ban never should have been lifted.
Stupid move that both idiotic globalist parties supported.
I hope this hoarding works for them.
It all depends on Mother Nature and how hard a winter punch she delivers.
Just another form of Price Controls which wii only make the supply smaller.
Wasn’t there some guy in Venezuela who did something similar a few years ago? That worked out well, didn’t it?
And Fauci.
I know... Price caps. Then raise taxes on refineries Bootygag will solve this...And besides. Just buy a 100,000 dollar electric car...
/s
Interesting (if a bit dated) article by the IEA on energy management in Europe after the Russian invasion of Ukraine:
I was slightly surprised to find the avg. thermostat setting in the winter in Europe is over 22 deg. C (72 deg. F or possibly a bit more). I already keep ours (mid-South USA) at 68 deg. F, considerably cooler if away for long, and also cooler in rooms not being used at the time. My friends in the Chicago suburbs are more like 66 deg. F.
There's definitely no excess diesel in the USA at this point.
No, the idea is to lower prices in the US and still kowtow to greenies.
The Dems internal poll numbers must really be looking bad.
Europe (and many millions of even more vulnerable poor around the world) be damned. But, it’s even worse than that because the whole global economy is already lurching toward a recession, the most immediate reason being the global energy shortage.
It took me a while to figure this out: We have a fundamental mismatch between OPEC+ suppliers and their customers: Producers like Saudi Arabia and Russia need oil prices of $90/ barrel or more to fund their governments. Consumers who are heavy importers like Europe, China & Japan need prices of $70 or less for their economies to prosper. A similar mismatch is occurring with natural gas.
The US is in a bit different “spot” since we don’t import a lot & most of our own oil and gas expenditure gets plowed back into our economy, but we are still much better off with prices similar to the Trump years (except COVID), roughly $60-$70, than $90.
With such a mismatch and a lengthy supply shortage as well in place, supply and demand doesn’t work quite as it should. Then add all the BS green policy further limiting supply. This creates a situation where neither supply nor demand can suitably respond, and as that causes industries and economies to fail, demand falls further, while the oil exporter’s need for revenue continues.
Eventually, “something’s gotta give”.
Meanwhile in France:
Note who is protesting - even the center-left unions do not favor the strikes.
I’m not sure I follow - I agree that Biden is cutting exports so that refineries are only supplying US needs. (I’m not sure how that applies to keeping the greens happy though)
My point is that this intentionally strands Europe whom we need to stand strong against Russia…
It’s too bad Russia blew up their own pipeline though.. it hurt their strategic advantage here.
When you don’t know what you are doing...its always someone else’s fault.
The Tree Letters story:
A fellow had just been hired as the new CEO of a large corporation. The CEO who was stepping down met with him privately and presented him with three numbered envelopes. “Open these if you run up against a problem you don’t think you can solve,” he said.
Things went along pretty smoothly, but six months later, sales took a downturn and he was really catching a lot of heat. About at his wit’s end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, “Blame your predecessor.”
The new CEO called a press conference and tactfully laid the blame at the feet of the previous CEO. Satisfied with his comments, the press — and Wall Street - responded positively, sales began to pick up and the problem was soon behind him.
About a year later, the company was again experiencing a slight dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, “Reorganize.” This he did, and the company quickly rebounded.
After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope.
The message said, “Prepare three envelopes.”
Yes. The timing is interesting.
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.