>>> Just what we need - higher gas prices
Actually, I think Trump and you are both mistaken. Petroleum is a very fungible resource, and so if we stop buying from SA, the market flow will automatically shift to accommodate, but everyone will still buy at approx. the same market price.
Incorrect.
Refineries are set you with feed specifications that are set to expected sources. Also take in account coastal refineries that take feedstock via barge, who may not have the same capabilities via pipeline or other transportation options.
Secondly, by eliminating the largest supplier of crude, you have narrowed your sources, and those said sources will obviously charge you more because of your fewer optiions.
Correct. Oil is a World market. It is bought and sold at the same price regardless as to who pumps it. If it is not bought from Saudi Arabia they will simply sell it to China. As truth would have it we buy a little over 10% oil from Saudi Arabia and other Persian Gulf countries. We actually only import about 20% of our oil all together due to fracking and most of that is from Canada, South America we import almost as much oil from Africa as we do from the Middle East.
Right. The world supply of oil is essentially one giant pool. SA oil will still be a part of it.