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What this article fails to mention is that there are also a record number of empty tankers routed to the US refineries right now, with the intention of shifting
by tpurves 5mo ago
What this article fails to mention is that there are also a record number of empty tankers routed to the US refineries right now, with the intention of shifting still-relatively cheap US oil products to overseas markets where the prices are already much higher and shortages have already hit. The effects of the Iran war on the US economy will really start to kick in over the next several months.
- daedrdev 5mo agoOnce again, its illegal to use that oil in California due to (imo bad) environmental regulations
- flumpmaster 5mo agoIf you are referring to American light crude oil grades such as WTI (West Texas Intermediate) that is not correct. That oil could be refined in California. It would have to come by tanker from the gulf coast through the Panama Canal to get there. Until recently it would have to come on a Jones Act US flagged tanker (expensive, scarce). That requirement has been temporarily waived.
- daedrdev 5mo agoRight I forgot we waived the jones act. Refiners are hard to come by in CA though as they keep shutting down
- deleted 5mo ago[deleted]
- pear01 5mo agoIn such a situation - especially heading into the midterms - an export ban may be increasingly probable.
- TheGRS 5mo agoThis is way outside of my area of expertise, but I thought US export oil was not fungible with what we consume.
- 0cf8612b2e1e 5mo agoFake numbers, but I have heard it is something like the US produces 100 units of light crude -exports it all, and imports 50 units of heavy. Net exporter, but the stuff we use domestically for gas refineries comes from elsewhere. Technically, the refineries can be retooled to take a different blend, but it is expensive to do.
- oceanplexian 5mo agoIt’s actually harder (requires more advanced technology) to refine heavy and sour crude. The US refining industry process this type of oil mainly because it’s more profitable not because of some limitation. American oil on the other hand (As in extracted out of the ground) is actually too high quality for domestic consumption therefore gets shipped overseas and sold at a premium. The weird economics of this are made possible by globalization. While it’s not fungible on a dime it’s easy to solve and the US really does hold all the cards when it comes to the petroleum industry.
- jandrewrogers 5mo agoUS crude oil is exported to foreign refineries for blending purposes. By blending low-quality crude with high-quality crude it can reduce the total costs to the refiner even after accounting for the fact that you had to buy high-quality crude to improve the properties of the domestic crude.
- mjhay 5mo agoAn export ban wouldn’t really help much: US oil production is (now) predominantly light crude, while US refinery capacity is oriented towards heavy crude from the gulf or Venezuela. We produce more oil than we use, but we can’t refine it all.
- 5mo ago
- 0cf8612b2e1e 5mo agoWhere you can go to monitor this? Does it require an expensive AIS data feed?
- kyrra 5mo agoCalifornia also needs a special blend that is only required in California (CARBOB). A lot of that is refined outside of the US, because there is not the capacity domestically. Cali could immediately have more fuel and cheaper prices by dropping their special requirements.
- throw03172019 5mo agoIs this an emissions reducing based blend?
- flumpmaster 5mo agoYes.
- shadow28 5mo agoYep, it's a low sulfur, lower volatility gasoline blend (https://thebreakthrough.org/issues/energy/how-california-regulated-itself-into-an-energy-crisis https://thebreakthrough.org/issues/energy/how-california-reg...) which apparently cuts harmful exhaust emissions like carbon monoxide and NOx.
- jsbisviewtiful 5mo agoSounds great for people and the environment. Too bad its production is now in danger thanks to horrible, ignorant decisions by this administration.
- gjsman-1000 5mo ago[flagged]
- jst1fthsdys 5mo agoPrices just shot up over a dollar nationally and no one is burning anything down. The real "let them eat cake" is the biggest polluters externalizing the costs of that pollution down to the people, all while the state is dismantling the EPA and clean energy. Imagine if we had real public transportation across the nation. Less pollution AND cheaper for the average person. Wonder why that isn't happening.
- Avicebron 5mo agoI suppose it's too much to ask that oil produced in the US be used for the US people?
- JimBlackwood 5mo agoI don’t think it is. If we can then also ensure the US stops meddling in international affairs, we can all be happy!
- abhiyerra 5mo agoThe type of oil that the US produces (light and sweet) can't be handled by US refineries which need (heavy sours). Why we are still a major importer of oil.
- legitster 5mo agoDepending on the type of oil and the refinery availability it's not that simple. Not all sources of oil can go to all refineries. Also, there's the bigger geopolitical problems that creates. If the US knocks over the global energy supply and then retreats and abandons our trading partners, the knock-on effects would be even worse. A large part of the reason WWII existed was the breakdown of international trade during the Great Depression. Countries without domestic supplies of their own were forced to grab territory instead of peacefully trading for what they needed.
- at-fates-hands 5mo agoHow do you think the UAE leaving OPEC will effect the oil markets in the coming months and years? Its being touted as having a major impact.
- thuuuomas 5mo agoWhy would they sell it for less when they could sell it for more? We’re witnessing “American exceptionalism” transform from a brash claim to a whiny demand in real time.
- tharmas 5mo agoThat's what Canadian oil is for. The USA gets it at a discount price.