Andylusion
Platinum Member
- Jan 23, 2014
- 21,320
- 6,434
This promotes localizing refinement of our oil to the United States in the first place. There's always going to be competition for U.S. refiners, but there's always going to be a market. Essentially this makes BP a US refinery when they want to exploit our resources. Before this Rabbi guy got all crazy, I made the point that consumer economies (of which energy we are) favor contrary trade policy to export driven economies.I'm referring to the trade restriction on exporting crude oil. This policy benefits US refiners and is part of our energy and national security policy. It's a very significant player when it comes to the price of energy. Our strategic oil reserves play roles from national security to currency here in the U.S.oh no. A peerless, unemployed professor draws curves that makes him conclude that protection doesn't include exports, no matter what reality says.
Protection doesn't include exports because of the definition of protection, nimrod. Who does limiting exports "protect?"
How does restricting oil exports benefit U.S. refineries?
You failed to explain how it benefits refineries. What do they care if the oil they refine is domestic or imported? They make the same amount of money in either case. How does "making BP a domestic refinery" benefit BP? The distinction between "consumer economies" and "export driven economies" is entirely superfluous. Some countries have high tariffs. Some countries have low tariffs. Consumers in the former have to pay higher prices on imported goods. That's the only distinction.
Well the theory is........... If we allow oil to be exported, then refineries will lose business because people who buy US oil, will no longer be forced to use US refineries to refine it, because they are now able to export the raw oil.
So a tanker load from Alaska for example, right now, can't go to a refinery in China to be refined. It must come to a US based refinery.
If we allow oil to be exported, then a tanker load of oil from Alaska could be purchased by say... China, and sent to a Chinese refinery, instead of to the US.
Quite frankly, if that were really a big issue, the oil companies would not be pushing to end the ban.
And beyond that even...... crap guys... I've heard for 10 years, people screaming about how we have a trade imbalance with China, and how horrible and awful, and doom and gloom over trade deficit with China. Chicken little screaming in circles about trade with China, the sky is falling, we're all doomed.
To all you fruits out there, well here you go..... shut up and sell them some oil. That will change the trade imbalance for sure.