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Old April 9th, 2018, 10:09 AM   #41
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Originally Posted by Marcus Livius View Post
The ban on US oil exportation was lifted during the Obama administration.

The ban was intentionally meant to protect our reserves for national security after the gas crisis during the Arab oil embargo against the Unites States in retaliation for rearming and resupplying Israel after the surprise Arab attack in the Yom Kippur war. Today, economically we are on good terms with virtually all the Arab except for Syria, and we now know we have a shitload more oil than we thought we had. Our production has also increased to the point that we will be the largest producer by 2019, surpassing both Russia and Saudi Arabia.

When the ban was lifted, we were almost at maximum oil storage capacity, yet major exportation of US oil was unlikely due to low PPB. Countries such as SA, Russia, Iran, Mexico and Venezuela can remain viable exporting at much lower PPB than the US. It is the rise of oil prices that drive US exports. If the PPB falls, US exports will slow. US exports do not drive up prices, rather it is rising oil prices that drives up US exports. US exports do not change price and demand, while it's destiny is dictated by it. Right now, it is rising world wide demand and OPEC cutbacks that is driving up the oil prices that is spurring US exports. Since China has begun to to import US oil, her importations from elsewhere has not decreased, in fact, her importation from just Iran in that same period had risen 160%.

US refineries are among the world's most advanced, and in recent years had spent huge sums to upgrade and improve, making it more more profitable to refine from cheap heavy crude such as that from Mexico and Venezuela instead of buying more expensive light and intermediate crude that we produce. Your gas price has very little to do with US exports and much more to do with world demand and world production. At any rate, only about 50% of the wholesale price of gasoline have to do with oil prices. The rest is refining, distribution, etc. Actual retail prices of gas at the pump are further influenced by the overhead and cost of living in any particular area.
Ban on exploration was lifted, not the ban on drilling.
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