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To allow U.S. export of crude...or not?

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posted on Jul, 29 2015 @ 10:26 PM
I'm on the fence with this one.

I've enjoyed the lower price for gas. The trucking company I work for has benefitted as well. They almost went down about a year and a half back. They've been able to acquire some new equipment and are in fairly decent shape, as a result.

So far that saving hasn't worked it's way down to retail prices, that I can see, especially in groceries and produce. Bottom line is virtually the complete economic spectrum has benefitted from the new 'reality' of surplus oil.

The push for crude exports seems to have as it's P.R. argument that it would create jobs. Jobs lost due to the lower crude prices. Less drilling and development has resulted in much less development for future wells. Some have claimed that drop will result in a spike in crude prices down the road with the drop of new sites coming on line.

The fear of the "boom-bust cycle" is being pushed. Valid or not? 'Ground floor' is the real boom in any industry-just look at the power brokers in the U.S.. Almost one for one, ground floor entry for fortunes to be made. The last to the dinner table always gets the left-overs. Nothing new there. These guys are pretty smart cookies as well. They can predict a shortfall well into the future and invest at the opportune time to take advantage of a new shortfall.

Therefore, I don't buy into a serious spike in prices due to a short term drop in development. Is this right or wrong?

Crude exports largely helps big oil in that they have the volume to fill international orders. The boom from shale and fracking has hurt big oil by dropping their 'return on investment of previously developed, traditional sources.

If I have this right, exports will drive up U.S. crude prices by allowing bid to come from outside the U.S.. Only through higher crude prices will those jobs the price of the average consumer...thee and me, not to mention the other industries that have benefitted from a more liquid public. Consumer goods, car sales, on and on..

On one hand more jobs, on the other more cost to the average guys.

Any input on this?

posted on Jul, 29 2015 @ 10:59 PM
a reply to: nwtrucker

I just moved back to Indiana from Texas, a lot of guys in the fields were getting lay off notices.

So it is definitely hitting the oil field workers without a doubt.

But across the board the savings are helping everyone.

So I think it is better now than before, but a lot of good jobs, a lot of good folks I know had are being lost.

It is hard to call.

posted on Jul, 29 2015 @ 11:13 PM
a reply to: johnwick

Having thought about it more- I'm stepping out on a thin branch on this one as I don't know much- but, prior to the boom in supply, the oil price would surge upwards as the markets in Asia opened and dropped again when the N.A. markets were open. That was due futures trading(?) as China, India have little of their own oil supplies, among others.

Opening our oil to the international markets allows futures trading on our oil? Compared to the ME our political situation is 'stable'.

Envision an IS strike on major oil sites in the ME. Our crude prices would be driven way up with no internal change in supply. We would suffer much more under that international 'stress'.

The more I think about it, the more I'm liking things as they are....

posted on Jul, 29 2015 @ 11:19 PM
Why do we export oil and then turn around and buy oil from other countries how does that make sense? Wouldn't that be like selling the water from your well and then buying water from your neighbor? Please explain?

posted on Jul, 29 2015 @ 11:36 PM

Notes: Crude oil exports are restricted to: (1) crude oil derived from fields under the State waters of Alaska's Cook Inlet; (2) Alaskan North Slope crude oil; (3) certain domestically produced crude oil destined for Canada; (4) shipments to U.S. territories; and (5) California crude oil to Pacific Rim countries.

Petroleum & Other Liquids

chrts and graphs back to 1920

lots of fluctuations

posted on Jul, 29 2015 @ 11:41 PM

originally posted by: JHumm
Why do we export oil and then turn around and buy oil from other countries how does that make sense? Wouldn't that be like selling the water from your well and then buying water from your neighbor? Please explain?

It is kinda complex, but all oil is not equal.

It is used in just about everything from fuels and plastics, to pharmaceuticals.

Some grades are better for different uses, just because of the long chain polymers one grade contains over another.

So there are valid reasons for this, it is just like selling honey and buying sugar, they are both sweet, but are not the same.

posted on Jul, 29 2015 @ 11:50 PM
a reply to: JHumm

Not unusual. Take Canada. All it's oil is in the west. Western Canada exports. On the east coast of Canada, they import their oil from the middle east. It's cheaper than building a pipeline all the way back to the east coast.

The U.S. had been a net importer for some time. But regionally, areas that had sufficient supplies used their own or exported.

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