“Simple, Congress passes a moratorium on imports that fall under the cash cost of domestic producers”
Oh Gawd. More Government.
I know this is probably a stupid question. Probably because of the sheer volume of oil produced...But. Is there any way to store oil until prices rebound? Like they do with other non-perishable commodities?
Who should by buying and storing? And at what volumes?
We need our Government sometimes to form protections for our industries, not as favors to political cronies but to emerging industries that are under attack by outside forces.
I have been following OPEC and Saudi Arabia news for more than 5 years. They see emerging US oil production as a lethal threat to their existence.
Saudi Arabia who leads OPEC did not cut their production as oil collapses because they are playing a game of Russian Roulette and hoping the newly energing US oil drillers will fold first.
This article presents the break even point of US and Canadian oil drillers. Saudi Arabia intends to undercut that break even point and hope to see the newly emerging production collapse.
A Congressional moratorium on crude imports below the domestic break even point which is about $35 a barrel will allow Americans to enjoy cheap gas and oil as well as protect the nascent oil drilling industry and all the jobs that go with it. This is not any different than what the Founding generation of the US did with respect to protecting domestic industries.
This government action is supportable by conservatives because it benefits all Americans and not a segment that is better politically connected including those bought off by the Saudis.
Libertarians would view such government protection as against free market principles. But it is not against free markets as it is aimed at OPEC trying to collapse the new US oil activity.