Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Misconceptions feed reluctance to allow export of US crude
Oil & Gas Journal ^ | 05/30/2014 | Bob Tippee

Posted on 06/01/2014 3:15:49 PM PDT by thackney

Three misconceptions make US officials reluctant to allow the export of crude oil. They are:

· The US will become a net oil exporter

· Oil is oil.

· Exporting crude would raise the US price of gasoline.

Expectations about the country’s becoming a net exporter trigger a strange hoarding reflex. Shouldn’t the US “keep” its oil?

Well, no, not if the oil has greater value elsewhere. The US probably won’t become able to produce more oil than it needs, anyway. It remains a net importer of nearly 6 million b/d. Further production gains and consumption cuts probably won’t close that gap. Recent developments make clear that oil is not all the same, that its quality varies widely.

US production increases are almost all of light, sweet crude and NGL. That creates problems for refineries—many of them in the Midwest and on the Gulf Coast—designed for large doses of heavy, sour feedstock.

For the system to work optimally, the crude slate needs to match refinery design. By that standard, the Gulf Coast increasingly has too much light material and too little heavy feed.

Alignment would come by allowing bitumen from Canada to displace light crude and condensate not needed on the Gulf. Surplus light material should be able to move to where it’s needed. Condensate, in particular, needs to move to Asia.

Yet current law not only disallows most exports of crude oil but also leaves unclear whether gas-plant condensate falls subject to the ban.

Fear about gasoline prices breeds reluctance to act before an election. But gasoline prices are influenced far more by markets in Europe, to which products can be exported, than by US crude values suppressed by Gulf Coast imbalances. Allowing crude exports would have little effect on the price of gasoline.

The Energy Information Administration has begun breaking out crude quality in its production forecasts. The move usefully underscores the growing importance of quality differentials.

Officials should get the message and accommodate oil-trade policy to modern realities.


TOPICS: News/Current Events
KEYWORDS: energy; exports; oil

1 posted on 06/01/2014 3:15:49 PM PDT by thackney
[ Post Reply | Private Reply | View Replies]

To: All


Less Than $2.7k To Go!!
Your Donation To FR Is The Fuel
That Keeps It Running!!
New Monthly Donors Help FR Get There Even Faster!!

Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!


2 posted on 06/01/2014 3:19:00 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Commies fear the Free Market.


3 posted on 06/01/2014 3:20:03 PM PDT by Oliviaforever
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Every gallon of gas I use should not be costing over $4.00, that is absurd.


4 posted on 06/01/2014 3:22:41 PM PDT by ansel12 ((Ted Cruz and Mike Lee-both of whom sit on the Senate Judiciary Comm as Ginsberg's importance fades)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Democrats want to keep the Oil and Gas in the ground until they get 1 party rule ,then sell it and get rich


5 posted on 06/01/2014 3:24:29 PM PDT by molson209 (Blank)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ansel12

Don’t worry, it’s all the ‘government’ doing it. Even though things really haven’t changed that much since the 2000’s. I remember it getting down to 75 cents in the mid to late 90’s and oil prices weren’t *that* much less.

It’s a huge racket. Period. Supply and demand do not matter in the gasoline market. Heck, demand is down majorly and prices still never drop.


6 posted on 06/01/2014 3:24:45 PM PDT by Monty22002
[ Post Reply | Private Reply | To 4 | View Replies]

To: thackney
Shouldn’t the US “keep” its oil? Well, no, not if the oil has greater value elsewhere.

Oil is not turnips. So, yes, the US should be able to keep it's oil to the extent we, the point of origin, are paying more favorable prices. Otherwise, what is the point in giving preference to any American oil company drilling on American leases? We might as well invite the Russians over or the Chinese or the Japanese or the Balaniese and triazillion the lease payments and permit costs, if it's all about profit for the individual companies, American public and industry be damned.

7 posted on 06/01/2014 3:47:04 PM PDT by blueplum
[ Post Reply | Private Reply | To 1 | View Replies]

To: ansel12

8 posted on 06/01/2014 3:56:47 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 4 | View Replies]

To: ansel12

If gas was cheap, every illegal and his 8 family members would be rolling nationwide in their 1986 Suburban....


9 posted on 06/01/2014 3:59:54 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 4 | View Replies]

To: musicman

For the price of a gallon of gas in California, you can help to save Liberty for your children.

Go to the Freepathon and donate $5.

This site need 500 Freepers to donate just $5 to end this Freepathon.

Do it.

Do it NOW.

Your children are counting on you. Don’t let them down.


10 posted on 06/01/2014 4:04:06 PM PDT by P-Marlowe (There can be no Victory without a fight and no battle without wounds)
[ Post Reply | Private Reply | To 2 | View Replies]

To: P-Marlowe

Thanks P-Marlowe!!!


11 posted on 06/01/2014 4:07:34 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
[ Post Reply | Private Reply | To 10 | View Replies]

To: musicman

I remember the days when these Freepathons lasted only a week or two. I know times are hard but the fact is that only 1 in every 20 Freepers actually donates even $5 to this forum.

I don’t always donate as much as I should, but when you see these things going on for months, it is clear that those of us who love this site and call it home need to pay the rent.

If this site is your home page, then treat it like your home. Mow the lawn. Take out the trash. But most importantly, PAY THE RENT!


12 posted on 06/01/2014 4:12:38 PM PDT by P-Marlowe (There can be no Victory without a fight and no battle without wounds)
[ Post Reply | Private Reply | To 11 | View Replies]

To: thackney

2 or 3 more refineries in this country would put the U.S. in the energy independent catagory....our supply is virtually endless, but you can’t put crude oil in your corvette


13 posted on 06/01/2014 4:31:24 PM PDT by terycarl (common sense prevails over all else)
[ Post Reply | Private Reply | To 1 | View Replies]

To: terycarl

The problem is not refining capacity, We use more oil than we produce ourselves. We have to import oil to keep our refineries full. We actually export surplus products because we refine more than we use.


14 posted on 06/01/2014 4:51:41 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Monty22002
getting down to 75 cents in the mid to late 90’s and oil prices weren’t *that* much less

Oil fell below $10 back then in many locations.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F005071__3&f=M

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F005006133&f=M

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F003048623&f=M

15 posted on 06/01/2014 4:56:53 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 6 | View Replies]

To: thackney
The replies to this thread demonstrate what an emotional issue the oil export ban is and how intertwined the Keystone issue is with removing the export ban.

I would put a positive spin on repeal:

A free market in oil, both import and export, will reduce the price of gasoline to the consumer by:(a) importing heavy crude to bring low API refineries to capacity, increasing supply, and (b) exporting light crude that cannot be refined by domestic high API refineries operating at capacity, increasing domestic light crude prices without affecting pump prices and simultaneously stimulating greater exploration and production.

A free market in oil would be a win-win for both the consumer and the national economy.

Restraints on trade cause four things, all bad: increase pump prices, decrease exploration and production, reduce economic activity and kill jobs.

16 posted on 06/01/2014 5:14:14 PM PDT by Kennard
[ Post Reply | Private Reply | To 1 | View Replies]

Let's see. Which would be easier. To eventually give all of our most important natural resources to international groups, or for example, go fishing?

Rough Seas Iceland
https://www.youtube.com/watch?v=QH6OOfh7sFs





How Iceland defeated the Anglo-American Bankster Mafia
https://www.youtube.com/watch?v=7zlzC_XMQzI


17 posted on 06/01/2014 7:10:26 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Oil should be back down to that level as well.. If not maybe double. I can see $1.50 gas, but we’re being robbed. Maybe you work for Aramco and don’t care.


18 posted on 06/01/2014 9:58:02 PM PDT by Monty22002
[ Post Reply | Private Reply | To 15 | View Replies]

To: Monty22002
Oil should be back down to that level as well.. If not maybe double. I can see $1.50 gas, but we’re being robbed.

I should win the lottery as well, even though I don't buy tickets.

Maybe you work for Aramco and don’t care.

Or maybe I live in the real world and not a fantasy place.

19 posted on 06/02/2014 4:33:07 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 18 | View Replies]

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson