Posted on 03/25/2024 8:43:02 PM PDT by joesbucks
Good question. Why do you think?
3.8 million b/d
According to the U.S. Energy Information Administration, petroleum product net exports are expected to reach new highs of 3.6 million b/d in 2022 and 3.8 million b/d in 20231. In the first half of 2023, U.S. crude oil exports averaged 3.99 million barrels per day, which is a record high for the first half of a year since 20152. This is an increase of 650,000 b/d (19%) compared with the first half of 20222.
Petroleum prices are global. And in the US gasoline/diesel prices are more affected by local regulations and circumstances than petroleum prices.
Global supply and demand and current international prices are easily looked up. As are local average prices.
And this will help how?
The US was under this policy for decades, until deregulation in the 1980s. This regulated system led to a collapse of US production and a dependence on imports.
We need more pipelines and we badly need more oil refineries....specifically ones set up to handle light sweet crude so we don’t have to export as much of our own.
Helps the US balance of trade (net-net).
Helps oil industry earnings, which help your IRA/401K
“But production is not up nearly enough, thanks to Biden’s idiotic green policies.”
Exactly so.
If this is true then the price of gasoline in the USA is being artificially inflated.
LOL! It is called supply and demand, look it up. Stop exporting and domestic supply shoots up and prices go down FACT FACT FACT.
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Cause and effect. Scrapping the pipeline destroyed a vital part of our hopes for energy independence. More profitable to sell and ship overseas than to keep it here and transport to around the continent to refineries. Perhap Trump can offer a long term solution to this when he returns to office. Use some military bases to build new refineries. Government should work for our oil industry instead of against it.
Supply and demand is the way global prices work. This supply and demand situation is buffered across the entire world. Eliminate US exports and US prices will be disconnected from global prices. Price controlled US petroleum will, in that environment, lose profit margins and lose capital investment, leading to lower production. Which will require importing petroleum again.
There are reasons why the 1970s became the 1970s.
This is partly correct. OPEC has decreed production cuts to support global prices. OPEC has been doing that for decades, or trying to, with greater or lesser success.
US petroleum is rather expensive to extract, and thus has smaller breakeven margins than most international producers. The international price can only fall so much before US production will fall off. So to a degree US oil producers share the same interests as OPEC.
HorseSh!t, I am pro American consumer you are a glowBULList < expletive deleted >. Restrict EXPORTS and domestic supply goes up, prices come down FACT FACT FACT.
I’m no expert, but I’m inclined to call 🐂💩 on this.
US production currently = US domestic consumption (check it out) - with a very small net positive. The US exports petroleum and petroleum products of some types and from certain locations and imports an almost equivalent amount from other places.
Net-net exports = imports.
The result of an export ban right now is going to be quite a mess.
But let’s assume that there are no considerations such as the almost unique US ability to refine sour heavy Venezuelan crude.
An export ban may lead to lower prices, maybe, in the short term - though not currently as US supply=US demand. But the loss of the security of global markets (lower volatility) will make the continual investments in US production (which is critical to fracking for one thing) more expensive, reducing investment and reducing production.
Volatility will increase because, say, a loss of demand in the US will not be buffered by an increase elsewhere.
That’s without taking other market forces into account.
To add, an export ban means that there is no point in increasing US production. That means there is a tightly defined limit in investment in the petroleum industry. That draws a line on the upside of investments. Revenues are limited, while possible losses aren’t.
Note: supply and demand considerations also work on the supply side. Capital and credit are also supply:demand markets.
(EIA) said……..:nuff said
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