Quotas on heavy crude oil would be phased in and imports would eventually be limited to around 10 percent of total demand.
Supporters say they're drawing a line in the sand after more than a dozen oil-rich nations failed to agree during a recent meeting in Saudi Arabia to freeze production. They blame Middle East producers for flooding the market and fueling the price war as a means to stifle domestic production.
Oil fell in the past two years from above $100 a barrel to touch 12-year lows under $30 a barrel earlier this year, and U.S. production has dropped by as much as 700,000 barrels a day and the number of rigs in the field has sunk to historic lows.
By 2017, crude oil production is forecast to average around 8 million barrels per day, nearly 1.5 million less than in 2015, according to the U.S. Energy Information Agency.
Oilfield equipment along one of the two-lane highways that link West Texas and southeastern New Mexico sits idle in company yards, and local governments and schools are feeling the pinch as severance taxes and royalties dwindle.
"Service companies, restaurants, real estate, the people building motels and hotels — there are a lot of impacts," said Yates told The Associated Press.
No way, these guys can be more efficient. The nation needs cheap energy. Don’t mess with out fuel prices!
Protect Jobs! Ban foreign made goods!
Welcome to Free Republic.
The Democrats aka; environmentalists (as the enviros are the backbone of the Democrat party) would have a field day with this accusing Trump, or any opposition as being in the bag for BIG oil. They would be relentless, and could win enough seats to make any progress towards conservative values for our country just a dream.
I believe by necessity it will take more than ninety days before this issue is addressed.
hmmmm buying the politicos isnt enough for you creeps? You have to come here and espouse your market manipulation crap? Go ahead. Won’t fly with this group. Beware the ZOT.
> a grass-roots campaign to limit foreign oil imports<
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Haven’t we tried to stop depending on foreign oil for decades?
I don’t remember getting any royalty checks from you guys in the mail when we were paying $3.75 pg for gas.
I suggest price supports maybe $40 per barrel or so. It always our producers a set price at which they can make money and keeps OPEC from running most of our producers out of business. Any extra oil can go into strategic reserves thus providing a safety net for national security.
As with other price supports we have often found that the floor (price support) becomes the ceiling. Where as with interest rates on credit cards the interest rate ceiling of 18% compounded to 23% or so has become the floor for many card holders.
I like low gas prices as much as anyone else, but let those saying Americans shouldn't favor import limits answer this: Where will American gas prices be after the cartel drives American oil companies out of business, if it succeeds at that endeavor? I'm guessing somewhere close to $10/gal as Europeans used to pay - or worse. Our gas bill could go from a couple of thousand a year for individuals to ten thousand a year, perhaps a couple more trillion (that's just a top-of-the-head estimate) siphoned out of our economy by those SOBs in the Middle East.
[”American oil is competing against a cartel of government operators which has a stated initiative of driving an American industry out of business,” said Tom Cambridge, one of the Panhandle producers leading the campaign.[
Welcome to the last 40-45 years of America. Yeah, they’re doing it all over. It’s called Open Borders, outsourcing, etc.
have you ever met anyone from TIRPO?
those people are Hillary-Commies
I suggest price supports maybe $40 per barrel or so. It always our producers a set price at which they can make money and keeps OPEC from running most of our producers out of business. Any extra oil can go into strategic reserves thus providing a safety net for national security.
As with other price supports we have often found that the floor (price support) becomes the ceiling. Where as with interest rates on credit cards the interest rate ceiling of 18% compounded to 23% or so has become the floor for many card holders.
If other countries provide price supports to oil producers we should charge a tarif.
No thanks.
How The Texas Railroad Commission Was The Blueprint For OPEC
As much as I would like to see oil prices go up for the sake of the oil field workers and support industries you just have to go through the bust period, it has happened before caused by supply and demand. The US does not import NG anymore say for Canada and the price is way down. Eventually it will go back up.
Why are we still importing almost half of the oil we use from our enemies in the Middle East, particularly since the nasty, thick sludge they are exporting requires more refining than the domestic oil our producers produce? The straw that broke the domestic oil market was Obama’s sweetheart deal with the America haters in Iran, which boosted their oil economy as part of the nuclear weapons treachery. He is an enemy of America, too.
Having said that, anything that would cut reliance on Saudi and Middle Eastern oil out even further would be a good thing in the long run.
Protectionism is stupid.
And oil flows in my veins and I exhale hydrogen sulfide.
Curious as to why they wish to target heavy crude, as the newer Permian production is a lighter, sweeter more desirable crude which can be sold to the proper refinery at a premium. West Texas Sour has a problem getting pipeline space to make it to market.
Their old field recovery operations with advanced techniques need about $50-$75 bbl to really turn a profit.
Most of the heavy crude imports come from Mexico, Canada, and Venezuela.
The shale oil is light sweet, local refineries are optimized for processing heavy oil; and, sufficient heavy oil is a must-have for proper crack yields.
The middle east oil supply is only a small portion of US crude imports. It’s also historically a light sweet, not a heavy crude oil.
Not all the relevant facts seem to be presented in the article, to support their narrative.
A fair Federal Energy Policy should be proposed to provide Minimum prices for crude oil produced off Federal Lands. Such a Policy would stimulate the economy by providing long term base prices that companies can use for justifying long term expenditures and investments, and to provide a more secure environment for maintaining jobs and keeping qualified / experienced personnel in key job positions. Without a policy that establishes a minimum price, increased drilling/production causes world prices to drop and makes companies stop drilling, lower production, job layoffs, allows foreign producers to dump cheap oil into the US.
I have a suggestion for the basics of an Energy Policy for crude oil pricing. Instead of letting World Oil Prices set the prices in the U.S. we should set our own prices – and then increase domestic production.
Set the Minimum Price for domestic crude oil production at $55.00 / barrel. Example: When world crude oil prices are $40.00 , imported crude oil would be taxed/ tariff by $15.00 to bring the price up to $55.00 and the $15.00 would go into the US Treasury. Crude oil produced in the U.S. would be allowed $55.00 / bbl. on oil produced off Federal Lands and I expect oil on private land would mirror the same $55.00 / bbl. Price. { Existing royalties would still be paid on all crude oil from Federal Lands, this new Energy Policy would provide additional revenues – the Tariff on imported oil if prices are below $ 55/bbl and the royalties on $ 55 oil instead of lower world oil prices.
This benefits all Americans because it protects the oil industry from the extremely low price swings of the World Oil prices that destroy domestic production and jobs. It provides a base price for tax revenue to cities and schools, hospitals, etc. that rely on revenue from crude oil.
We should not allow the world to dump cheap oil onto US markets and limit US oil production. Without this “Bracewell” Energy policy that sets a minimum price for domestic crude oil, as other countries increase oil production - the US must reduce our production so that the price of crude oil doesn’t drop! How stupid of US. With a base domestic price of $55 for crude oil, America wins with Jobs, move towards energy independence, revenue into Federal treasury, etc. When world prices move above $55 / bbl. this policy has no effect! This just keeps the rest of world from flooding our markets with cheap oil and destroying US Jobs. As an American, I don’t want $35 oil being paid for oil produced on Federal Lands. I want a minimum of $55
All Americans win with this Bracewell - Energy Policy.