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If you're going to discuss the current energy inflation crisis in the United States, it makes no sense to ignore the export picture: https://www.cnn.com/2022/0

If you're going to discuss the current energy inflation crisis in the United States, it makes no sense to ignore the export picture: https://www.cnn.com/2022/01/05/energy/us-lng-exports/index.html https://www.cnn.com/2022/01/05/energy/us-lng-exports/index.h... > "US producers have responded by boosting LNG shipments to Europe, where prices are now higher than in east Asia. Prices in both regions far exceed those in the United States, suggesting that US LNG exports will continue to increase in 2022." https://oilprice.com/Latest-Energy-News/World-News/US-Fuel-Exports-Are-Draining-Domestic-Diesel-And-Gasoline-Supplies.html https://oilprice.com/Latest-Energy-News/World-News/US-Fuel-E... > "Citing Vortexa tracking data, Bloomberg said that up to 2.09 million bpd of gasoline, diesel, and jet fuel shipped out of the Gulf Coast last month. That rate represents the highest volume since 2016 based on known data. And it wasn’t destined to help Europe out of its energy crisis. Instead, the report says that most exports went to Latin America, and that is not expected to slow in the near term." If you want to lower US energy prices to combat inflation, impose a cap on exports.

daemoens 4y ago
That won't happen because it throws the Europeans under the bus hard. The US would be seen as an extremely unreliable ally during a time when our alliances are as strong as ever.
- diordiderot 4y ago
  You think Americans don't need that gas more. Untold suffering will result if prices go any higher. How will they afford drive alone in a 6 litre 5 ton trucks an hour to their dialysis treatments while their empty house maintains a crisp 65f.
  - Justin_K 4y ago
    If we don't sell it, they'll be forced to buy from Russia. The global community is all suffering because of the war.
  - mike00632 4y ago
    "Untold suffering... " of Americans vs the suffering of the Ukrainians? Really?
    - diordiderot 4y ago
      Apologies, the comment was meant to be sarcastic.
HWR_14 4y ago
> If you want to lower US energy prices to combat inflation, impose a cap on exports. Energy (and oil) isn't fungible. Weird as it may sound, US refineries weren't set up to handle US crude, so it's incredibly wasteful to process it in-country. And US LNG exports are unlikely to increase in 2022, because exporting infrastructure is already at the limit.
- jnordwick 4y ago
  Refiners can be adapted to process more sour blends when a longer term issue is seen or it can be routed through a 3rd party who can supply the service. If that wasn't the case you wouldn't see contracts for off grades just written up as a static per barrel cost to TI or Brent. Of course it isn't frictionless though.
  - HWR_14 4y ago
    US crude actually tends to be sweeter than average. It's just more efficient to export the sweet crude and import the more sour crude than recreate the refineries outside the US to handle the sour.
sumy23 4y ago
Damn, if only I could fill up my car with natural gas.
jnordwick 4y ago
That doesn't work in a global market. Never has. It merely shuffles who sells to who an who starts holding . Give that it could actually drive the price higher domestically and abroad and invite retaliatory actions, this is a Great Depression style bad idea. The energy markets are global. You the product flows between countries easily, and the the only real differentiation is on grade, and plants have been and will be refitted for to match. So you don't want to sell to me, fuck off the I'll go buy from this other guy who's been trying to sell to me anyways. Now, that other guy doesn't have enough, but I don't care because he doesn't look like me. He's able to buy from your neighber. And you've been nice to him selling to him when he needs it, but now you start to wonder if you're natgas that you invented is really just indirectly winding up with that Brown family. hands? So you cut everybody else of 100% . Then you noticed your family is also out of that good taqsting lng. In you son's and daughter's rooms you find out they're just storing it. You ask them about it and they said if it was a little lower priced they'd use it themselves, but at this price, they want to sell to the Brown people. Its like the price of lng was at some magic equilibrium where is was perfectly balanced between price and marginal utility. So now you have less lng than before, and it is even more expensive for what you get. You've had it. The're going to do what they should morally be doing anyways and sell some to this family unit at the price I demand they should sell it. You march into their rooms, grabs their supplies and congrats on taking anothher important step towards socialism. And all because you just didn't want the Browns to have any of what you had.
- photochemsyn 4y ago
  There was a ban on crude oil export from the United States from c.1975 to 2015 (when Obama and Biden lifted the ban in cooperation with Republicans, as I recall). How does that play into your 'it never worked' concept? https://ballotpedia.org/Crude_oil_export_ban https://ballotpedia.org/Crude_oil_export_ban Notably, opponents of lifting the ban argued doing so would jack up domestic gasoline and diesel prices...

daemoens 4y ago

That won't happen because it throws the Europeans under the bus hard. The US would be seen as an extremely unreliable ally during a time when our alliances are as strong as ever.

diordiderot 4y ago
You think Americans don't need that gas more. Untold suffering will result if prices go any higher. How will they afford drive alone in a 6 litre 5 ton trucks an hour to their dialysis treatments while their empty house maintains a crisp 65f.
- Justin_K 4y ago
  If we don't sell it, they'll be forced to buy from Russia. The global community is all suffering because of the war.
- mike00632 4y ago
  "Untold suffering... " of Americans vs the suffering of the Ukrainians? Really?
  - diordiderot 4y ago
    Apologies, the comment was meant to be sarcastic.

HWR_14 4y ago

> If you want to lower US energy prices to combat inflation, impose a cap on exports. Energy (and oil) isn't fungible. Weird as it may sound, US refineries weren't set up to handle US crude, so it's incredibly wasteful to process it in-country. And US LNG exports are unlikely to increase in 2022, because exporting infrastructure is already at the limit.

jnordwick 4y ago
Refiners can be adapted to process more sour blends when a longer term issue is seen or it can be routed through a 3rd party who can supply the service. If that wasn't the case you wouldn't see contracts for off grades just written up as a static per barrel cost to TI or Brent. Of course it isn't frictionless though.
- HWR_14 4y ago
  US crude actually tends to be sweeter than average. It's just more efficient to export the sweet crude and import the more sour crude than recreate the refineries outside the US to handle the sour.

sumy23 4y ago

Damn, if only I could fill up my car with natural gas.

jnordwick 4y ago

That doesn't work in a global market. Never has. It merely shuffles who sells to who an who starts holding . Give that it could actually drive the price higher domestically and abroad and invite retaliatory actions, this is a Great Depression style bad idea. The energy markets are global. You the product flows between countries easily, and the the only real differentiation is on grade, and plants have been and will be refitted for to match. So you don't want to sell to me, fuck off the I'll go buy from this other guy who's been trying to sell to me anyways. Now, that other guy doesn't have enough, but I don't care because he doesn't look like me. He's able to buy from your neighber. And you've been nice to him selling to him when he needs it, but now you start to wonder if you're natgas that you invented is really just indirectly winding up with that Brown family. hands? So you cut everybody else of 100% . Then you noticed your family is also out of that good taqsting lng. In you son's and daughter's rooms you find out they're just storing it. You ask them about it and they said if it was a little lower priced they'd use it themselves, but at this price, they want to sell to the Brown people. Its like the price of lng was at some magic equilibrium where is was perfectly balanced between price and marginal utility. So now you have less lng than before, and it is even more expensive for what you get. You've had it. The're going to do what they should morally be doing anyways and sell some to this family unit at the price I demand they should sell it. You march into their rooms, grabs their supplies and congrats on taking anothher important step towards socialism. And all because you just didn't want the Browns to have any of what you had.

photochemsyn 4y ago
There was a ban on crude oil export from the United States from c.1975 to 2015 (when Obama and Biden lifted the ban in cooperation with Republicans, as I recall). How does that play into your 'it never worked' concept? https://ballotpedia.org/Crude_oil_export_ban https://ballotpedia.org/Crude_oil_export_ban Notably, opponents of lifting the ban argued doing so would jack up domestic gasoline and diesel prices...