Can some one explain this logic to me?

[Maggot]

We are capable of produing enough oil to run the country yet prices at the pump go up because of decreased OPEC production. Still, we export our oil?

While I fear more government oversite, and regulations, wouldnt it be wise to keep our oil here and lower the price? Tell OPEC to go fuck themselves with all their dirty crude?

Educate me.

House Democrats call for Biden to ban oil exports and tap - CNN​

https://www.cnn.com › 2021/11/22 › investing › gas-pric...



3 days ago — Nearly a dozen Congressional Democrats are urging President Joe Biden to combat high gas prices by not only releasing barrels from the US ...

 

[Chabrone]

When you say “our” oil, who are you referring to? There is foreign ownership interest in US oil through companies that produce it. I’d like to think people could figure out a better way but we still export oil and import oil.

 

[Thumper580]

OPEC owns Biden,, close our pipeline down, help Russia get their pipeline, gas prices soar, people get pissed, Democrats make a pathetic effort to "solve the crisis", release oil reserves..... All smoke and mirror's. Oh, look how we are helping..... OPEN THE FUCKING PIPELINE BACK UP!
They create problems then rush in and save from problems they created.

 

[hlee]

Oil is more expensive in other countries than it is in the US. It can be economically advantageous to sell american oil outside of the US. When OPEC production decreases, oil prices rise, making it even more economically advantageous to sell American oil outside of the US.

Moreover, Petrolium is a global commodity. Global production affects local prices...

The US does not have a command economy, giving the fed little say in where American oil is sold. Perhaps you would be happier in Russia or China...

 

[TexPatriot]

We are capable of produing enough oil to run the country yet prices at the pump go up because of decreased OPEC production. Still, we export our oil?

While I fear more government oversite, and regulations, wouldnt it be wise to keep our oil here and lower the price? Tell OPEC to go fuck themselves with all their dirty crude?

Educate me.

House Democrats call for Biden to ban oil exports and tap - CNN​

https://www.cnn.com › 2021/11/22 › investing › gas-pric...



3 days ago — Nearly a dozen Congressional Democrats are urging President Joe Biden to combat high gas prices by not only releasing barrels from the US ...

Educate you? How about I give you the shortest, most concise answer.

Fuck Joe Biden. Everything Trump built to make America independently wealthy and great again went against the globalist's plan to bring America to it's knees and become another communist satellite state of China.

 

[candyx]

Its just conversation to keep you like a mushroom, whats happening is that they want more of the money you have or to sink you further into debt. Government is an illusion for the people, those in

charge have one job to do and thats to take money out of your pockets without any fuss like a con game. Its the government's money anyway, they left a everyone a warning on every bill who to trust, certainly not them.

 

[tomcatmv]

OP it is a very complicated calculus. While we do have lots of oil, as hlee pointed out, it is a global commodity/market. Plus a lot of our oil is in shale which requires fracking that is more expensive to extract. So when the global price of oil per barrel goes down the fracking drillers sometimes have to shut down just because it doesn't make economic sense. While I'm not in the oil business, I am in central Texas and my brother works for Shell in the Houston area and is very knowledgeable on the subject. West Texas around Midland has always been a boom or bust proposition and Shell is long range planning to get out of the oil business according to my brother.
Is the current administration under potato head a problem? Hell yes and his energy secretary Granville is an idiot but that's only part of it.
Let's go Brandon!!! Oh and fuck OPEC.

 

[Rthur]

A circle jerk pretend solution that creates more problems in the future.

R

 

[alamo5000]

Exports were banned for 40 years and they just ended in 2015. There are a ton of ideas as to why it's a good idea to export. The fact that they removed the ban in the first place allowed substantial amounts of oil to be recovered. Also keep in mind that 'our oil reserves' is a moving target. Let me explain.

Not that long ago in order to get oil you had to drill straight down and there was only the capability to reach X depth. When that got tapped out the well was done. Flash forward and now they can drill down to Z depth. Furthermore they can use a single hole and drill essentially a spider web out from the center of it thus allowing substantially more recovery from a single hole. Also add in fracking technology which allows extraction from previously unrecoverable deposits. More or less they find large deposits in porous material under ground. They can then pump liquid down the hole to offset where that oil is, thus forcing the oil out by displacement. None of that technology was available not very long ago.

Oil was banned from export primarily because of the extortion from OPEC that happened back in the 1970s where they cut off oil supply. Back then the US imported a HUGE portion of it's oil from Saudi Arabia. Now though JUST Canada and Mexico alone account for around 65% of oil oil imports.

Why do we still import though? Most of that is because of infrastructure. If you want expensive oil try trucking substantial amounts of the stuff from West Texas to Oregon via 18 wheeler. Hence it's way easier to just buy Russian oil and ship it to the West Coast.

Another technical factor is the type of oil we produce in America vs our refining capability. Especially along the Gulf Coast our refineries are set up to refine heavy dirty sulfuric crude. Refining that stuff is much more difficult for a number of reasons. US crude though has a totally different make up. They can switch everything over to refine lighter crude but that will be a lot longer and not so easy of a process. Plus different grades of crude sell at different price points. The big thick nasty heavy stuff sells at a massive discount to the lighter cleaner stuff (aka Brent). Basically our infrastructure is built around the ability to refine the worst stuff. Not all oil is created equally. For the lighter stuff that is easier to refine the competition to purchase that is WAY more and it is WAY more expensive too.

There are tons of factors involved here. Getting the oil to market (even in the US) is not as easy as one thinks. Try building a pipeline...

I can explain a lot of this but I don't know how much data you really want.

 

[Maggot]

Oil is more expensive in other countries than it is in the US. It can be economically advantageous to sell american oil outside of the US. When OPEC production decreases, oil prices rise, making it even more economically advantageous to sell American oil outside of the US.

Moreover, Petrolium is a global commodity. Global production affects local prices...

The US does not have a command economy, giving the fed little say in where American oil is sold. Perhaps you would be happier in Russia or China...

That does explain a lot of it.

as to your insult, did you bother to read this part of my question..."While I fear more government oversite, and regulations"? It was just a question. Grow up.

When you say “our” oil, who are you referring to? There is foreign ownership interest in US oil through companies that produce it. I’d like to think people could figure out a better way but we still export oil and import oil.

I reckon I meant oil contained in or under the land in the 50 states. It just seems that should go to service our country and citizens than to go on the world market. Oh well, it was a nice run while we had it.

 

[Holliday]

People are confused. Like most issues, the Democrats are morons and have a goal but that goal conflicts with actual public sentiment.

Like “guns”, Democrats want our pickup trucks SUVs and all other gas engines. They want to buy battery cars. It’s no secret that the Democrats see high gas prices as a means to that end.

And like with guns, it’s only when they see it as a losing issue, that might cost them some positions like the presidency, that they start to pretend to change course. Make no mistake about what their end goal is.

 

[alamo5000]

Oil is more expensive in other countries than it is in the US. It can be economically advantageous to sell american oil outside of the US.

Yep. Refer to the chart that I just posted up in my other comment. All of the smaller countries with less refining capabilities all are REQUIRED to fight over the oil from the lighter end of the spectrum. This is because they don't have the capabilities to refine the heavy stuff. It's a whole different ball game to refine Brent vs something really heavy and full of sulfur.

Less technology (and infrastructure) to refine heavy oil forces those other countries to gravitate to the light end of the spectrum.

 

[rtB]

Remember what happened.
Trump opens up more fracking in US.
Smaller oil companies jump into leases in the US.
US becomes energy independent.
Globalists are pissed.
The Saudis drop prices and pump more.
Fracking becomes marginally or not profitable.
Price of domestic oil goes negative.
Little guys get squeezed out.
Biden shuts down pipeline, new oil leases.
Big hedge funds say no funding for new oil projects.
Oil goes up, up, up.
Europe, US, most the rest the world get screwed.
Major oil company profits go way up.

All part of the plan.

 

[TxWelder35]

Yep. Refer to the chart that I just posted up in my other comment. All of the smaller countries with less refining capabilities all are REQUIRED to fight over the oil from the lighter end of the spectrum. This is because they don't have the capabilities to refine the heavy stuff. It's a whole different ball game to refine Brent vs something really heavy and full of sulfur.

Less technology (and infrastructure) to refine heavy oil forces those other countries to gravitate to the light end of the spectrum.

So if I’m understanding correct, what we product is the sweet light more expensive oil that’s easier to refine. US refineries are set up to process the shit, sour, heavy oil that’s dirt cheap. So we sell our expensive oil at a premium and buy the cheap shit that others don’t want that we can refine?

 

[alamo5000]

So if I’m understanding correct, what we product is the sweet light more expensive oil that’s easier to refine. US refineries are set up to process the shit, sour, heavy oil that’s dirt cheap. So we sell our expensive oil at a premium and buy the cheap shit that others don’t want that we can refine?

Yep.

Pretty much.

It's a bit more complex but that's the basic answer.

Edit: Also note that gasoline is not the only thing that we get out of a barrel of oil.

 

[hlee]

That does explain a lot of it.

as to your insult, did you bother to read this part of my question..."While I fear more government oversite, and regulations"? It was just a question. Grow up.

I reckon I meant oil contained in or under the land in the 50 states. It just seems that should go to service our country and citizens than to go on the world market. Oh well, it was a nice run while we had it.

 

[Maggot]

Yep.

Pretty much.

It's a bit more complex but that's the basic answer.

Edit: Also note that gasoline is not the only thing that we get out of a barrel of oil.

Lots of wonderful plastic to pollute the oceans?

 

[theLBC]

i'm am sure i don't know enough to attempt an explanation, but also keep in mind there are different grades of oil and it isn't all the same.

 

[candyx]

Lots of wonderful plastic to pollute the oceans?

Without that plastic pollution we wouldn't have The 4ocean Bracelet , which in time will end right back in the ocean.

 

[GreenGO Juan]

Exports were banned for 40 years and they just ended in 2015. There are a ton of ideas as to why it's a good idea to export. The fact that they removed the ban in the first place allowed substantial amounts of oil to be recovered. Also keep in mind that 'our oil reserves' is a moving target. Let me explain.

Not that long ago in order to get oil you had to drill straight down and there was only the capability to reach X depth. When that got tapped out the well was done. Flash forward and now they can drill down to Z depth. Furthermore they can use a single hole and drill essentially a spider web out from the center of it thus allowing substantially more recovery from a single hole. Also add in fracking technology which allows extraction from previously unrecoverable deposits. More or less they find large deposits in porous material under ground. They can then pump liquid down the hole to offset where that oil is, thus forcing the oil out by displacement. None of that technology was available not very long ago.

Oil was banned from export primarily because of the extortion from OPEC that happened back in the 1970s where they cut off oil supply. Back then the US imported a HUGE portion of it's oil from Saudi Arabia. Now though JUST Canada and Mexico alone account for around 65% of oil oil imports.

Why do we still import though? Most of that is because of infrastructure. If you want expensive oil try trucking substantial amounts of the stuff from West Texas to Oregon via 18 wheeler. Hence it's way easier to just buy Russian oil and ship it to the West Coast.

Another technical factor is the type of oil we produce in America vs our refining capability. Especially along the Gulf Coast our refineries are set up to refine heavy dirty sulfuric crude. Refining that stuff is much more difficult for a number of reasons. US crude though has a totally different make up. They can switch everything over to refine lighter crude but that will be a lot longer and not so easy of a process. Plus different grades of crude sell at different price points. The big thick nasty heavy stuff sells at a massive discount to the lighter cleaner stuff (aka Brent). Basically our infrastructure is built around the ability to refine the worst stuff. Not all oil is created equally. For the lighter stuff that is easier to refine the competition to purchase that is WAY more and it is WAY more expensive too.

There are tons of factors involved here. Getting the oil to market (even in the US) is not as easy as one thinks. Try building a pipeline...

I can explain a lot of this but I don't know how much data you really want.

This guy knows what he is talking about.

 

[TexPatriot]

Yep.

Pretty much.

It's a bit more complex but that's the basic answer.

Edit: Also note that gasoline is not the only thing that we get out of a barrel of oil.

Nope. Oil to modern man is what the buffalo was to the Plains Indian. We base our lives on it get and make a lot more from it other than gas.

A pool that cost me to plumb with PVC for $3,500.00 a year ago now costs $6k.

 

[TxWelder35]

Edit: Also note that gasoline is not the only thing that we get out of a barrel of oil.

This much I did know. Their isn’t much out there than doesn’t trace back to barrel of oil at some point. Between rising food/fertilizer prices and rising oil costs, I see is getting fooked on multiple sides here.

 

[hlee]

Lots of wonderful plastic to pollute the oceans?

Petrolium is the primary source of basic carbon containing molecules for all of modern chemistry- including pharmaceuticals.

 

[alamo5000]

Lots of wonderful plastic to pollute the oceans?

The dashboard of your new car, the stuff they put on the windshield to prevent it from shattering, the soles of your tennis shoes, the stuff we make roads out of, jet fuel, heating oils, packaging on pretty much everything, cel phones, on to 9,000,000,000 other items.

 

[Steel+Killer]

Let's not forget about the environmental restrictions here in the US vs NAME YOUR SHITHOLE.

 

[tomcatmv]

This guy knows what he is talking about.

Yes, he does.

 

[alamo5000]

On a side note US light crude usually trades at a discount to other light crudes. This is because most of our oil is produced inland. The cost to move it to a coastal area is prohibitive.

Currently numerous pipelines are either in construction or nearing completion. As those transportation bottle necks gets solved the more our oil will fetch in the open market.

When people are all opposed to pipelines and such it definitely doesn't help anyone. Not even the environment.

 

[Short-bus]

@alamo5000 thank you for your response that really laid it out, gave me a lot more understanding about the oil industry, without having to do a deep dive and pick through the data to find the answer to any questions I have.

Branden

 

[isofahunter]

The ban in theory sounds like a great idea, as in most cases theory does not hold up to reality. As has been pointed out there are a lot of moving parts to the "oil business".

 

[alamo5000]

So if I’m understanding correct, what we product is the sweet light more expensive oil that’s easier to refine. US refineries are set up to process the shit, sour, heavy oil that’s dirt cheap. So we sell our expensive oil at a premium and buy the cheap shit that others don’t want that we can refine?

I was curious so I looked up some stuff.

If you refer to the chart I posted up it will have an entry for Mexican Mayan Crude. It is about halfway in between the heavy and light spectrum.

Within the past day or so Mexican Mayan oil was selling for under $75 per barrel delivered to the US Gulf Coast. Brent Crude however was selling at over $82 before any shipping takes place. $7 give or take difference per barrel in this example. The 'weight' of the crude is one thing, but the 'sour' is another that impacts price. If you have crude that is heavy AND sour (full of sulfur) it will be discounted a lot vs the price you see on the news.

Our infrastructure is built as such so we can refine anything.

 

[alamo5000]

@alamo5000 thank you for your response that really laid it out, gave me a lot more understanding about the oil industry, without having to do a deep dive and pick through the data to find the answer to any questions I have.

Branden

We are just BARELY scratching the surface.

 

[Short-bus]

We are just BARELY scratching the surface.

I would find a deep dive fascinating, but if you ever take the time to even do a deep scratch, make sure you tag me please.

Branden

 

[TxWelder35]

I would find a deep dive fascinating, but if you ever take the time to even do a deep scratch, make sure you tag me please.

Branden

I would imagine that would be a dozen episodes per season, and more seasons than survivor.

 

[acudaowner]

always loved a good godfather quote .

 

[HeavyAssault]

I.E: If you can buy reloading components to create any caliber round at $.50 a round and sell them for $3.00 a round....would you?? Just as long as "your reserves" are stocked it sounds like a good plan.