3 ms·
> If we had an oil export tariff, then we would very quickly become oil independent. We had an oil export ban until 2015. Lifting it is at least part of the re
by wahern 5y ago
> If we had an oil export tariff, then we would very quickly become oil independent.
We had an oil export ban until 2015. Lifting it is at least part of the reason oil production has increased as much as it has over the past 6 years. If you look at production graphs, oil production was already on a sharp upswing between 2010 and 2015. But it kept going between 2015 and today, even though domestic oil consumption declined over that period.
If you consider grades of oil and geographic locations (i.e. for what and whom various production areas are best suited), it might even be possible that the only reason we could be hypothetically import independent without substantially increased prices based on today's undifferentiated extraction volume is because of the export market. Without the grade and geography arbitrage provided by trade, current production might not be viable without substantially increased prices. (Though, if global prices become extreme and remain so, then at least we could limit the price increases. OTOH, it's probably just easier--and certainly quicker--to make nice with Venezuela rather than restructure our extraction and refining infrastructure.)
- erosenbe0 5y agoGreat comment. The growth in the export market lets the domestic market do a bit of optimization and arbitrage, keeping prices down overall.