Crude oil is $86 today.... beginning of the end?

Why should we care about exports!? We aren't talking about cars, here, where one type is very distinct from another. It's oil, all oil, and it'll be broken down into the same components.

Until we produce all our own oil and imported oil can't compete, there is no need to be concerned about exporting it.

Oil might be the only "growing" sector of the economy, but it isn't the only sector of the economy. They all matter.

Using the earlier estimates, we average 13,400 miles per year driving so the direct savings would be more than $1000 tax free dollars. The multiplier you mentioned, it isn't exclusive to the oilfield so do your multiplication on those gas savings, too. There are about 120 times as many full time workers not in oil and gas.

This statement is unfortunate, it is an emotional argument. Once again, oil and gas might be the only growing sector, but it isn't the only sector and not everyone outside the oilfield flips burgers.

Since that's not relevant let's leave it alone. Those bubbles have already been created and the pain isn't lessened by perpetuating them.

This too is unfortunate. Transportation costs are most certainly down and you would be telling us there are no functioning market mechanisms for that not to lead to price competition.

Got it. In whatever industry, in whatever sector, spending has a multiplier effect. And, once again, oil and gas might be the only growing sector but all the rest of the country isn't mopping floors and cleaning toilets.

Alright, but you can't argue that the entire American economy isn't bolstered by lower fuel costs and there are hiring opportunities elsewhere, too. About the only thing you can argue is that you would like the United States to either ban Saudi oil or to put a tariff on it so that it is not competitive with American production. I need you to at least admit this or tell me why it isn't true.

Then tell me this, what other sector wouldn't like tariffs on foreign imports so that domestic products can be sold at a higher price? Do you think the American automobile industry wouldn't like higher tariffs on imported cars? You know, auto execs, automotive engineers and auto workers do a little better than burger flipping too. Their spending has the same multiplier as oilfield workers. How about the steel industry, wouldn't they like tariffs? Textiles? Agriculture? Basically, everyone in America would like whatever product they make to be sold at artificially high prices.

All that is overlooking the whole WTO and the thrust to get rid of import tariffs worldwide. That's OK, but do you think oil and gas is the only sector that should have artifically high profits and wages?

Again, it's just oil. We don't need to export as long as we are importing.

There's no countering, no need to export, unless you want environmental regulations lifted.

Not logical. If Saudi Arabia sells us cheap oil, then our "comparative advantage" shifts to other industries.

The argument can be made to put tariffs on Saudi oil for strategic advantage- we would need a robust oil industry in time of war. But, that's a different argument. As I said, every industry would like to not have to compete against foreign competition.

No sector is growing like oil and gas, I'm sure. Doesn't mean other sectors don't matter. We still need houses and cars and food and movies and restaurants and electronics and schools and roads, and, and, and... I found these 2011 numbers: 14/15 of the US economy would also like price supports so their domestic business could reap higher profits, too.

http://www.aei.org/publication/ener...uld-be-the-16th-largest-economy-in-the-world/

I still say the low oil prices are most likely due to economic warfare against Russia and Iran. Those of us who don't die in a nuclear war will probably see high prices again.

 

Again, we can put tariffs on imported oil, but every sector of the economy would like to not have to compete against foreign competition. Ever met an American trucker who doesn't want to compete against Mexican truckers?

 

This is not the only life, for those who are saved the 'Best Is Yet To Come.' I take it you do not believe there is a God or Savior, if so your not alone, for the gate is wide and many go in thereat, Matthew 7:13,14.

 

The chemical characteristics of crude oil vary greatly depending on the oilfield or reservoir from which it originates, its not as fungible as the media would have us believe.
I'm not suggesting tariffs but rather open competition on the international market but knocking down export barriers. We have surplus capacity that is being held captive by export restrictions that are artifacts of a bygone era. Allowing domestic crude blends to fetch their highest dollar on the international market is positive in the long term for our industry.

 

If you aren't asking for import tariffs, that takes us a lot farther toward agreement.

The fungibility of oil. I know there are some characteristics of crude that vary (light, sweet...) but when I looked up fungible the examples given were oil, wheat and lumber. That's as opposed to, say, Timex's, Chevrolets and Gibson guitars- all of which must be bought from American manufacturers if that is what you want. I don't know how fungible oil is but for the moment I don't think it's too important.

I already posted an article that says we do in fact export oil, though I guess there are restrictions. I want to read more about those restrictions, but introducing more oil into the marketplace is only going to further depress oil prices, not raise them. More supply means lower prices.

That would, however, mean industry growth as more oil is being pumped and sold. Everyone would have the cheap gas we have right now and the obstacles would then become environmental concerns and strategic defense issues. I'm not taking a stand on either of these last two at the moment.

 

This is an interesting article. As you read it, there is an assumption of the fungibility of oil and no issue of export restrictions. It's assumed that any increase of domestic production would only reduce imports.

 

Its a three year old article. The US produces 14% of the world oil. If we make 11 mil bnls a day and world production is Is 75 million bbls. We became the number one producer of oil this year in the world, so yes it could keep the Saudi king up at night. If you look at graphs we caused the glut in the oil and the Saudis piled on.

 

That's fine. How about linking those graphs.

 

Trying to make sense of US export restrictions. I guess we don't export crude but we do export distillates. US crude is cheaper than the world market so we use everything we pump plus we import higher priced oil. However, what the oil companies lose because they can't export crude, they make up by selling the distillates at higher, world rates:

 

[TABLE="align: center"]
[TR]
[TD="colspan: 5"]Share of U.S. in Total Oil Production
[/TD]
[/TR]
[TR]
[TD]2009
[/TD]
[TD]2010
[/TD]
[TD]2011
[/TD]
[TD]2012
[/TD]
[TD]2013
[/TD]
[/TR]
[TR]
[TD]10.75%
[/TD]
[TD]11.06%
[/TD]
[TD]11.54%
[/TD]
[TD]12.39%
[/TD]
[TD]13.67%

[/TD]
[/TR]
[/TABLE]