Update: The White House said on Wednesday there had been no change to U.S. policy on exports of crude oil. A White House spokesman suggested the reports had been misleading.
Media reports are stating that U.S. officials have allowed two companies to export shipments of a light oil called condensates.
The Wall Street Journal reported that the U.S. Commerce Department gave approval via a private ruling to Pioneer Natural Resources Co and Enterprise Product Partners LP to export the oil.
Senator Lisa Murkowski urged the Obama administration to fully lift the 40-year-old ban on crude exports following these approvals.
“Commerce’s decision to allow companies to process condensate and export the resulting products is a reasonable first step that reflects the new reality of our energy landscape,” Murkowski of Alaska, the top Republican on the Senate energy committee, said in a release. “I continue to urge the administration to fully lift the ban on crude oil and condensate exports.”
it’s got to be about China and the use of foreign ships.
I say NYET to her! US oil needs to stay in the US!
Basically, oil is a commodity traded on the world market. It makes no difference where it was drilled. Once it is extracted, some very smart people determine how to best manage supply chain efficiency. If it makes more sense to ship Alaska oil to Japan while buying sweet crude from the Middle East - so be it.
Did you know that all Venezuela crude, despite political issues, is sent to Texas for refining? Another example of the fluidity of oil.
The key point is the world market set the price of oil no matter where it is drilled.
Not disagreeing as OPEC controls 80% of total output.
But non-OPEC nations still match price even though they don’t have to. US oil producers are not about to discount home grown oil out of patriotic generosity. So back to C.Captains original rant - it doesn’t matter where the oil comes from or where it goes. It’s a global commodity and is treated as such.
[QUOTE=steeltoesonplanes;139970]The world market? Try OPEC. Which would be an oligopoly and illegal if it was US companies instead of foreign countries.[/QUOTE]
yeah, but what’s in it for Lisa Murkowski or the money that supports her is what I am asking?
The oil companies that bought Lisa’s father many years ago, paid for Lisa’s conception, paid for Lisa’s upbringing and education, and then bought her a Senate seat, told her that she thinks: Oil will be worth more money and of greater benefit to Alaska, if the net price of Alaska oil is not depressed by the excessive cost of shipping it on Jones Act ships that must employ overpaid American shipyard workers and seamen — very few of which live in Alaska.
[QUOTE=Jetryder223;139968]We discussed this in class this past semester.
Basically, oil is a commodity traded on the world market. It makes no difference where it was drilled. Once it is extracted, some very smart people determine how to best manage supply chain efficiency. If it makes more sense to ship Alaska oil to Japan while buying sweet crude from the Middle East - so be it.
Did you know that all Venezuela crude, despite political issues, is sent to Texas for refining? Another example of the fluidity of oil.
The key point is the world market set the price of oil no matter where it is drilled.[/QUOTE]
Maybe Chouest is about to start building 1000 ft OCV’s ( offshore crude vessel). Then we can take all the guys from Cut Off with a 3000 itc and get a special 1,000,000 itc OCV endorsement to run them. The fuckin guy is brilliant…
[QUOTE=ChiefRob;139987]Yes the U.S is one of the largest buyers of crude from Venezuela, but after refining it we sell it back to them as diesel. The U.S. exports huge amounts of diesel mostly low sulphur every year. Mostly going to Europe and South America.
Not all crude oil is created equal. Some is “natural gasoline” that will run a car straight out of the ground. Some crude oil is more like frozen asphalt.
Venezuelan oil is a sour very heavy crude. Some of it is more like natural asphalt. The Texas refineries are among the very few places in the world capable of refining it. That is why Venezuela bought CITGO.
Alaska oil is relatively heavy and can be sour. West Coast refineries are set up specifically to process it. Some California oil is similar. The Bakken oil from North Dakota is light and sweet. West Coast refineries are retooling to process it.
North American oil should stay in North America. Eventually, we will need it all. In the meantime, we should keep the economic advantages of a secure and abundant oil supply to ourselves. There should be also ban on exports of gasoline and diesel. Lower costs at the pump would boost manufacturing, strengthen our economy, and get America back on track.
[QUOTE=Kraken;139996]How exactly would that logic work? What will the oil producers earn on Americans wasting oil?[/QUOTE]
No no. I do not advocate wasting any oil. The US now produces a little over half of its daily consumption. The other half must still be bought on the world market. Canada is the largest foreign supplier. I think Saudi Arabia is still second.
My goal is to reduce the purchase of foreign oil to zero, and keep our dollars home. This can be done by increasing oil production in the US, including off the Atlantic, Pacific, and Arctic coasts, converting to natural gas, and energy conservation.
Venezuela is a hostile OPEC country. i see no reason why the US should be bearing the environmental risks and costs of refining its low quality oil. Similarly, we should not be bearing high prices for gasoline and diesel, and higher environmental costs by allowing US refineries to export crude, gasoline, or diesel for consumption outside of North America. The oil companies are earning fantastic profits. I have no doubt they will continue to do so regardless of whether they are allowed to export petroleum products.
North American oil should stay in North America. Eventually, we will need it all. In the meantime, we should keep the economic advantages of a secure and abundant oil supply to ourselves. There should be also ban on exports of gasoline and diesel. Lower costs at the pump would boost manufacturing, strengthen our economy, and get America back on track.[/QUOTE]
I will agree that the U.S. needs to do as much as possible to gain energy independence from the rag heads who hate us. However the oil companies own to many politicians on both sides of the isle, and will do what ever means necessary to maintain their profit margins. I seriously doubt we will ever see any significant decrease in price at the pump ever again. Even if the price at the pump does drop, the murican consumer will not save that money, it will be blown on cheap shit from wally world that is made in china not here, not helping or manufacturing industry one little bit. If the price of oil falls to much the oil companies will seriously cut back on their spending which will affect about 90% of the people on this forum probably being out of a job. Even though I don’t particular like high gas prices, they do keep me and most of my friends gainfully employed.
[QUOTE=tugsailor;139986]The oil companies that bought Lisa’s father many years ago, paid for Lisa’s conception, paid for Lisa’s upbringing and education, and then bought her a Senate seat, told her that she thinks: Oil will be worth more money and of greater benefit to Alaska, if the net price of Alaska oil is not depressed by the excessive cost of shipping it on Jones Act ships that must employ overpaid American shipyard workers and seamen — very few of which live in Alaska.[/QUOTE]
am I the only one who smells BP’s bad body odor here?
of course, Exxon hasn’t bathed in a fortnight either.
[QUOTE=c.captain;140017]as I suspected, the honorable Senator wants to sell US shipowners and mariners down the Yukon RIver…BITCH![/QUOTE]
Follow the Leader. Dear Leader appoints clueless buffoons to the post of Maritime Administrator and nobody can figure out why US maritime gets lip service? We still have uber-buffoon John “I Hate the Jones Act” McCain running around, too.
I actually met Sean Connaughton when he was still the Maritime Administrator. He gave me a Made in China MarAd Challenge coin. Little did I know at the time (2008) that he would be the last Maritime Administrator who actually had a maritime background worth a mention.
[QUOTE=c.captain;140017]as I suspected, the honorable Senator wants to sell US shipowners and mariners down the Yukon RIver…BITCH![/QUOTE]
I think the entire affair reflects poorly on the intelligence of the average US citizen. Remember when gas prices were high and they were shouting, “drill baby drill”? Remember Obama was the enemy of oil? Well, we are now drilling in the GOM at levels far surpassing anything under the so called oil guy in the WH. We’re fracking anything that looks like it might have oil or gas and Dakota is a giant pin cushion of drill bits. We are exporting oil by way of a loophole already. The price at the pump is up. Why isn’t there a great hue and cry about high gas prices now? I mean the Tea Party ought to be all over this because we should be able to burn a LOT of cheap US produced oil since global warming is a hoax there are no consequences anyway…What is Fox and CNN reporting about this?? The only thing I can figure is the same bunch that owns the government owns the TV media too. Therefore the average US citizen is too ignorant to see they are being raped going and coming because they only watch TV or follow parrot websites of their own political beliefs.