Did anyone watch the news this morning and hear them talking about this? They were mentioning to export to European countries that rely on Russia. I can see the pros of this, but also see the cons of this.
This is not a good time to be selling oil.
The only con I can see from it is f we start selling oil to European countries then Russia is going to get pissed cause for ALL these years we haven’t sold shit now all the sudden we’re takin there main buyer? That’s the only con I see. I see ALOT of pros, but only one con.
We import a bit of product from Europe so maybe it makes sense to provide the crude for them to refine, and sell back to us as product. Bad for the U.S., but since when have we done things good for our own country?
how about barter, thats not really selling?
Not enough oil? We have more now then we know what to do with. They have an ass load of wells capped off never even flowed a day in their life, our reserves, and there still drilling in the gulf and starting up drilling in the arctic. Everyone says inland is dead, but it’s not. There finding oil deeper then where they originally drilled at. There’s is plenty of oil to be distributed.
[QUOTE=josh.reid24;166279]Not enough oil? We have more now then we know what to do with. They have an ass load of wells capped off never even flowed a day in their life, our reserves, and there still drilling in the gulf and starting up drilling in the arctic. Everyone says inland is dead, but it’s not. There finding oil deeper then where they originally drilled at. There’s is plenty of oil to be distributed.[/QUOTE]
We still must import about half of the oil we use everyday. So obviously, we do not have enough oil to meet our own needs and provide US energy security.
While it makes sense to export oil to Europe in the short term to squeeze the Russian economy as hard as we can until they back out of Ukraine, exporting crude, and for that matter gasoline and diesel is a bad idea for our economy and security.
Or is it the case that we import oil because our refineries are tooled to refine that particular grade of crude?
Maybe I’m missing something but since oil is a world wide commodity why does it matter if we sell oil outside our country? Either we sell our oil and import other oil or we use our oil and what we don’t import goes elsewhere. How can we displace the Russians? If we sell to Europe the Russian oil will go elsewhere. It all works out the same in the end.
Now if the debate is sell our strategic oil reserves now or wait until later, that is simple, you don’t sell at the bottom of the market. Now is the time to buy…
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[QUOTE=coldduck;166285]Or is it the case that we import oil because our refineries are tooled to refine that particular grade of crude?[/QUOTE]
Also, this ^.
[QUOTE=Capt. Phoenix;166290]Maybe I’m missing something but since oil is a world wide commodity why does it matter if we sell oil outside our country? Either we sell our oil and import other oil or we use our oil and what we don’t import goes elsewhere. How can we displace the Russians? If we sell to Europe the Russian oil will go elsewhere. It all works out the same in the end.
Now if the debate is sell our strategic oil reserves now or wait until later, that is simple, you don’t sell at the bottom of the market. Now is the time to buy…
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Also, this ^.[/QUOTE]
The US is currently producing 9.5 million barrels a day of oil. That is expected to decline to 9.3 million a day in 2016. We consume about 19 million barrels per day of “oil equivalent,” and consumption is increasing. Much of that “oil equivalent” comes from domestic natural gas condensates.
We import about 25% of of our needs or 4.5 million barrels per day of foreign oil.
Canada is our largest source of foreign oil imports. Venezuela is second. Mexico, Saudi Arabia, and Africa supply most of the rest of our daily oil consumption.
Many Gulf Coast refineries are tooled up to refine low quality heavy oil from Venezuela and various other places. East Coast refineries are tooled up to refine light oil from the US and Africa. West Coast refineries process oil from California, Alaska, and increasingly North Dakota. The West also imports a small quantity of a particular grade of oil from Ecuador.
We only produce about 75% of our daily “oil equivalent” needs. We must import about 25% of our daily needs.
When oil prices are low, like now, it makes the most sense to leave our oil stored in the ground (we are going to need it later) and use as much cheap foreign oil as possible. It makes no sense at all to export our stragic supply of domestic oil, at least not until we are producing well over 100% of our daily needs.
[QUOTE=tugsailor;166298]It makes no sense at all to export our stragic supply of domestic oil, at least not until we are producing well over 100% of our daily needs.[/QUOTE]
Is this about selling the strategic oil reserves? I don’t watch the news…
(Also, I think what you said is a much longer version of what u said.)
From my point of view proven reserves in the ground in the U.S. are our domestic oil security and economic competitive advantage. So “strategic” from that point of view.
No one is talking about exporting oil from the U.S. government owned “Strageic Petroleum Reserve”. That is oil that has already been produced, sold to the government and stored in salt caverns in Texas and Louisiana.
[QUOTE=tugsailor;166303]From my point of view proven reserves in the ground in the U.S. are our domestic oil security and economic competitive advantage. So “strategic” from that point of view.[/QUOTE]
Then are they talking about pumping more than they otherwise would to sell some to Europe? If not I still don’t see why there is an issue since however much we sell will just be bought from somewhere else to cover US consumption.
[QUOTE=Capt. Phoenix;166309]Then are they talking about pumping more than they otherwise would to sell some to Europe? If not I still don’t see why there is an issue since however much we sell will just be bought from somewhere else to cover US consumption.[/QUOTE]
Some people don’t heat their homes with oil, and do not remember the gas lines and rationing of the 70’s.
How long will jeaux-boss wait until they retool or build new refineries to process more crude domestically, or will they wait until the ban is hopefully lifted? They should compromise and just say fuck it lets export a fraction of daily production as long as you directly fund A, b, c infrastructure project and create a job for every so many barrels exported. Or make them use jones act tonnage. Imagine… For every mile of road you pay to repair, you can export x many barrels.
I’d have no problem exporting every drop if it’s on US bottoms, as previously said its a global commodity, but can’t wrap my head around why it’s still cheaper to import billions of barrels rather than retool refineries, over the long-term yes over a few years or maybe a decade but not forever.
I still want to see the sweetheart deal that allows the exports to Irving in saint john.
If it became a security issue who would make the U.S. Keep exporting? (Other than politicians)
[QUOTE=z-drive;166314]can’t wrap my head around why it’s still cheaper to import billions of barrels rather than retool refineries[/QUOTE]
From what I understand it isn’t as simple as retooling the refinery, it’s a massive investment into what are mostly 50+ year old refineries. With EPA regulations the way they are it’s nearly impossible to build new or update existing refineries, it’s more economical to sell the plant to India like I heard Sun Oil did with their Eagle Point facility.
There is an exception to the oil export ban for Canada because they supply the US with more foreign crude oil than anyone else, and they supply us with a lot of gasoline and diesel.
J. D. Irving owns virtually everything and provides most of the jobs in the Province of New Brunswick. They can get any permit they want. Canadian provinces have a lot more political and regulatory clout than a U.S. State does. As I recall, Exxon and Irving invested some huge number of dollars, maybe over $5 billion, in the new Irving Saint John refinery. One of the reasons they built it, is that no one can get the permits to build a new refinery in the U.S. in less than a decade.
We need to stop letting the environmental extremists block major U.S. projects and the jobs that come with them, and stop forcing these projects and jobs to go across the border.
Got on the boat in St.john a few times. When clearing customs in Halifax while heading to work, told the Canadian authorities I was heading to my boat which is contract to Irving. I got escorted through security with my bag & straight to the plane. They made sure I was making my flight.
[QUOTE=Capt. Phoenix;166315]From what I understand it isn’t as simple as retooling the refinery/QUOTE]
Retooling ain’t as simple as it sounds.
[QUOTE=injunear;166325]Retooling ain’t as simple as it sounds.[/QUOTE]
What he said…