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Spider Jerusalem

(21,786 posts)
22. No, they aren't
Mon Oct 8, 2012, 05:14 AM
Oct 2012

this is a shockingly ignorant interpretation. They're not exporting more fuel to create an "artificial shortage"; oil is priced on the world market, and the US imports most of its oil. (Note that it wouldn't necessarily be any cheaper if it weren't exported; they'd just scale back refinery output. Fuel delivery is on a just-in-time basis; they don't keep stockpiles of the stuff in tankers.)

The wholesale, untaxed cost of one gallon of unleaded is about the same in the US and the EU and everywhere that isn't a net oil exporter with a heavily subsidised national oil company. The "oil price" quoted in US financial news is inaccurate, because it's NYMEX crude, which is not the global benchmark; the global benchmark is Brent, which is trading at about $25 a barrel higher than WTI. Oil companies are exporting diesel fuel because there's a demand for it outside the US and the US has the refinery capacity to process it; the combination of increased fuel economy standards and higher fuel prices changing travel patterns have led to a c. 3 million barrel a day fall from peak consumption in the US.

Americans already pay lower prices for fuel than anyone in the developed world. "Hurting the economy"? Taken a look at how the global economy is doing? Not that good anywhere; part of the problem is that economic recovery leads to oil supply constraints and pushes prices inexorably upwards. One of the major and largely unacknowledged factors of the 2008 economic collapse was high oil prices due to the fact that the world market was using pretty much every barrel of oil produced, and there was very little to no slack or production overhead in the system.

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I'd like to know the answer as well. NCarolinawoman Oct 2012 #1
Same will happen with the canadian oil pipeline oil.We are also importing less oil. julian09 Oct 2012 #2
I heard today that a fire DID just happen in a California refinery! Up2Late Oct 2012 #6
They aren't very specific about seriousness of mishaps or fire, seems odd. julian09 Oct 2012 #7
Theory RobertEarl Oct 2012 #3
This from the Wall Street Journal today re: natural gas - DURHAM D Oct 2012 #4
Yeah, I knew something like this was bound to happen with the natural gas.... Up2Late Oct 2012 #5
Too bad they can't find way to export sun or wind. julian09 Oct 2012 #8
Cutting oil exports drives up food prices in exchange for cheaper oil. Zalatix Oct 2012 #9
They haven't cut oil exports at all, they are exporting a LOT more now! Up2Late Oct 2012 #10
Let me rephrase... ATTEMPTING to cut exports with the intent to lower prices Zalatix Oct 2012 #20
Nothing will convince me otherwise. LiberalAndProud Oct 2012 #11
Good article on this. Tennessee Gal Oct 2012 #12
Thanks, a lot of good info there! Up2Late Oct 2012 #16
The answer to that is that they haven't Spider Jerusalem Oct 2012 #13
OK, I see now, most of the exports are finished petroleum products. Up2Late Oct 2012 #15
The problem is that most of those exports are from oil that was *imported* in the first place Spider Jerusalem Oct 2012 #18
Double post, deleted Spider Jerusalem Oct 2012 #13
The USA is one of those countries B Calm Oct 2012 #17
Remember the Alaskan Pipeline in the 70’s and how it was going to SAVE America coldwaterintheface Oct 2012 #19
Now that I know why this is happening, it still seems wrong to me Up2Late Oct 2012 #21
No, they aren't Spider Jerusalem Oct 2012 #22
US auto exports have increased by 60% from 2009 to 2011 and on pace to pampango Oct 2012 #23
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