If there were long term export contracts to supply at a fixed price and the domestic supply diminished, the domestic price would rise while the export quantity and price was the seme
Yes, if this passes energy costs in the USA will go up. China will probably buy all our oil leaving US citizens fighting for the crumbs China leaves us.
If there were long term export contracts to supply at a fixed price and the domestic supply diminished, the domestic price would rise while the export quantity and price was the seme”
True. And that exporter would be losing ground, and scrambling to find more product at a cheaper price so they don’t go bankrupt.
With the rising domestic prices, production would increase, the exporter might be able to take some of that, and might then actually survive their long term contracts....and if production increases enough, and supply is enough, and if that exporter is good at finding that cheaper production....then that exporter might end up actually making money.
Meanwhile, the overseas buyer gets a steady supply, at a fixed price, and reduced one of its variables....
Right?
Still trying to understand all of this....