Posted on 03/17/2015 10:14:34 AM PDT by thackney
Lifting a 40-year-old U.S. ban on crude exports would create a wide range of jobs in the oil drilling supply chain and broader economy even in states that produce little or no oil, according to a report released on Tuesday.
Some 394,000 to 859,000 U.S. jobs could be created annually from 2016 to 2030 by lifting the ban, according to the IHS report, titled: "Unleashing the Supply Chain: Assessing the Economic Impact of a U.S. crude oil free trade policy."
Only 10 percent of the jobs would be created in actual oil production, while 30 percent would come from the supply chain, and 60 percent would come from the broader economy, the report said. The supply chain jobs would be created in industries that support drilling, such as oil field trucks, construction, information technology and rail.
Many of the jobs would be created in Florida, Washington, New York, Massachusetts, and other states that are not known as oil producers.
"The jobs story extends across the supply chain, right across the United States...
(Excerpt) Read more at rigzone.com ...
Time to Lay the 1973 Oil Embargo to Rest
http://www.cato.org/publications/commentary/time-lay-1973-oil-embargo-rest
The embargo was a non-event. The production cutbacks were trivial. The wrong lessons were learned. In short, everything we think we know about the events triggered 30 years ago today is wrong.
Let’s start with the embargo. Most people believe that it was directly responsible for long gasoline lines and for service stations running dry. The shortages were, in fact, a byproduct of price controls imposed by President Nixon in August 1971, which prevented oil companies from passing on the full cost of imported crude oil to consumers at the pump (small oil companies, however, were exempted from the price control regime in 1973).
Contributing factors such as what you mention, and possibly others could have been in play at the time. The fact still is, that the Oil Carter did have the power to be severely disruptive of the United States economy at the time.
Is that a situation we wish to return to? I don’t believe you think it is. I would hope not.
Thackney, while I appreciate your presentation of this information, it was none the less within the power of the Middle-East oil cartel to cause major disruption in U. S. oil supplies. If the embargo was not the cause of this, as you say because supplies were only slightly interrupted, the potential was still there.
Are you trying to say you would like us to be back in a situation where a group could cause extreme economic disruption in the U. S.?
As I said in my previous reply, I don’t think you believe that. I obviously can’t speak for you on that point.
The problem for the consumer was created by government interference in the market.
I want to reduce government interference in the market. It is nonsense to think removing the ban would create gasoline lines.
Don’t ignore that all oils are not equal.
Stopping looking for government to manipulate private business and the consumer will come out for the better.
Removing the ban would cause us to deplete our energy resources far more rapidly than would otherwise take place.
You can dance around this issue all you like, but the fact remains that when our energy supply is used up, we’ll be right back to being dependent on other nations that can easily decide to do us harm on a whim.
The real nonsense is thinking this would not be true.
It is.
Actually, they don't. The global market is too large, and they are too dependent on the dollars.
Are you trying to say you would like us to be back in a situation where a group could cause extreme economic disruption in the U. S.?
You continue to ignore that group was our own government. And you want to add to their influence.
If OPEC doesn't want to sell oil to the US, North Sea suppliers can add a dollar to their price, ships us theirs and buy from OPEC at a discount.
You should really try reading the link about the embargo. It is only a page summery and not that difficult to understand.
Unfortunately, we pretty much have to import a certain portion of foreign oil. Most of the new production from the horizontal / fracking technology is “light, sweet” crude, but most US refineries require “sour” crude. (Sweet and Sour refers to sulfur content mainly...)
BUT we are better off if we can sell the sweet stuff we have to pay for the sour we must import.
ALSO lots of overseas buyers would much rather start buying from the US in lieu of Russia and OPEC. Gives them a bit of security and diversification, and pokes a little bit of a stick in Putin’s and OPEC’s eyes. Also helps secure some US power, when we are shedding so much by our leader-from-behind’s actions (or lack thereof).
Look, I realize the people who develop these studies have vested interests, but I don't totally dismiss the supposed findings.
I am a firm believer in the "multiplier effect" related to dollars spent domestically in the United States. For each dollar earned and spent in the U. S., perhaps 3.5 to 10 dollars are subsequently spent. If you consider the multiplier effect on those expenditures, it's almost an endless ripple effect across the economy.
For this reason, I should be motivated to be on board with this. For the reasons already explained I remain less than willing to expose this nation to being a heavy importer of oil in the future.
This may be flawed logic on my part, but I'm not the only person who thinks along these lines.
I think you'd have to admit the Republicans on Capital Hill are pretty much all-in when it comes to Chamber of Commerce / business interests. In the article it mentions only two people who support lifting the ban.
These are two people I've never agreed with on a single issue in my life.
Thank you for your reasoned exchange. I think you raise some good points too.
IMO, the way to get this nation back on track is to return manufacturing to the United States. Until that happens, we'll never be a credible economic nation again.
For your consideration. On trying to grow manufacturing, do you think telling those who would invest to grow domestic manufacturing would be more or less encouranged if told any product they produce could not be exported, unless another company added value to it first?
Ted Cruz Amendment Would Be Difficult Vote For Some GOP Senators
http://www.nationaljournal.com/energy/ted-cruz-makes-life-difficult-for-republicans-on-oil-exports-20150113
Texas senator proposes rolling back ban on oil exports
January 13, 2015
Ted Cruz is making waves.
The Republican senator from Texas and likely 2016 presidential contender has started a push to end a decades-old ban on crude exports that could force his fellow Republicans to take tough votes.
Cruz hopes to attach an amendment lifting the ban, which blocks most overseas shipments of U.S. oil, to legislation moving through the Senate to greenlight the Keystone XL oil-sands pipeline.
The push allows Cruz to cast himself as a free-market enabler of the American energy boom, which has unleashed a torrent of crude oil onto the domestic market as a result of hydraulic fracturing and horizontal drilling’s one-two punch. It also puts him out front on energy priorities—ahead of others in the Senate considering presidential bids, including Sens. Marco Rubio of Florida and Rand Paul of Kentucky, who have so far kept a low profile during the Keystone debate.
Sorry, but until the US can refine and use all we produce to make ourselves self-sufficient there's no way any change will end up any differently than NAFA and all the other free trade initiatives that have reduced number of decent jobs in the US.
Overall, in fact, it all would boil down to the same thing as the H-1B program in reverse where we pay whatever people elsewhere pay for their gasoline and petroleum products because we compete with them for each gallon of fuel or petroleum products the same way we have to work for less because people in India and China will work for less.
Look, NAFTA, wasn't going to put people out of work, H-1B would never take jobs from Americans or drive wages down in tech industries, and all the other "free trade" garbage was going to help us, too.
Now that there are millions of people who once had decent jobs working at Walmart or flipping burgers and dependent on Foodstamps to help them get by but still can't make their house payment, there's just no way I'm buying the "free trade" garbage again.
When we had manufacturing here in the United States, at traditional levels, our success wasn’t won or lost on foreign sales. I will admit all foreign sales certainly helped the bottom line.
We were not in danger of being held over a barrel if we needed another refrigerator. We merely made one.
With a finite product, we reach a point when there is none left. I do not want to deplete our supplies of energy products.
Look, you may be right. I am arguing my point of view on this. I appreciate you advocating for what you believe is right.
The you will send more dollars to our enemies, while you wait.
Have a great day, God Bless.
Free markets..., now there’s soemthing we haven’t had enough of.
40 million plus people out of work, and free markets is the answer. LMAO
How many people did we have out of work in 1990?
How many people do we have out of work today?
Yep, Free Markets will save us.
I believe Ted Cruz is dead wrong on this one.
If we’re not selling more domestic oil abroad, how will that send more money to our enemies?
Purchasing more oil from abroad would do that.
You are only dreaming that we would produce more with your concepts. We would push away US producers and end up importing more, including more refined product.
You cannot add restrictions and cost and think it is going to grow business.
Thackney, I’ve given all that thought, and I’m comfortable with my decision.
Over production does not a case make. Everyone jumped in to produce more and the marketplace reacted. This is normal.
Less production will result. Prices will rebound.
In short order it will make sense to ramp up production again, and this time folks will go slower and more methodically.
Yeah, we never had an oil price crash before. This was completely new to this industry...
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