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Oil is sold globally. It doesn't matter if in Texas wells are producing it at a penny for barrel, if the global prices are high that oil is going to be sold to
by epolanski 27d ago
Oil is sold globally.
It doesn't matter if in Texas wells are producing it at a penny for barrel, if the global prices are high that oil is going to be sold to Philippinos, Japanese, Italians or South Africans.
So, at the same time, it doesn't matter if some new routes open or close, it doesn't particularly favor one or the other buyer, it's still sold globally on a bid.
- echelon 27d agoUntil we bar export.
- bijowo1676 27d agowhy would Exxon allow export ban and lose exorbitant profits ?
- epolanski 27d agoWhat's next? Full blown communism? In any case, bad idea if other retaliate with their exports. Also, US cannot really use the oil it produces, because it can refine very little of it. Any export ban would require massive investments.
- QDwQ1 27d agoYes, the US was a full-blown communist nation until 2015, when Congress repealed the long-standing ban on exports of crude oil.
- chasd00 27d agoi don't see why deals can't change. It's just a contract, the IRS could create a tax incentive for US producers to sell to US refineries at a discount. US producers could do it on their own if they so chose as well.
- epolanski 27d agoI don't understand how do you think that would work and who would pay the bill.
- throwaway473825 27d agoThe US produces light oil that's easier to refine and hence more profitable to export since it has many buyers. The US refines heavy oil that's harder to refine and hence more profitable to import since it has few buyers.