Not Logged In Log In   Sign Up   Points Leaders
Follow Us    5:13 AM

GasBuddy News Article

38
votes
'A Global Bathtub': Rethinking The U.S. Oil Export Ban

NPR -- When oil supplies ran short and gasoline prices spiked four decades ago, angry drivers demanded relief. Congress responded in 1975 by banning most exports of U.S. crude oil.

Today, domestic oil production is booming, prompting U.S. energy companies to call for a resumption of exporting. Many economists agree.

But would that bring back the bad old days of shortages? Would you end up paying more at the pump?

Supporters of exports say Americans should not allow 40-year-old images of an energy crisis to distort how we see the world today. They argue that in the 1970s, a particular vision of oil markets got embedded into our national psyche, and now it's time to update our worldview to more clearly see what's happening.

To appreciate their argument, let your mind wander back.


Read the Full Article

Submitted Feb 02, 2014 By: BurntOrange
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: 'A Global Bathtub': Rethinking The U.S. Oil Export Ban Back to Topics
REPLIES (newest first) Post a Reply
Profile Pic
MAC48
Champion Author Dallas

Posts:3,187
Points:1,239,160
Joined:Dec 2006
Message Posted: Feb 3, 2014 12:11:06 PM

YummaFellow - Your comment below was "Let's dump our big tax breaks for the oil barons first." We all look forward to your factual substantiation of your statement that oil companies receive “big tax breaks" and do not forget to cite the IRS code sections that prove your contention is indeed true and not just another agenda serving propaganda falsehood. We will be very excited to know specifically what these “big tax breaks" are and if they are any different in context or purpose to the tax breaks given to each and every other taxpayer.

As to article’s discussion of the contention expressed by the proponents of exporting domestically produced crude oil that times have changed and the US does not need to prohibit the exportation of crude oil as the government decided to enact the prohibition in the mid 1970s. There is little to no change in the strategic world crude oil production scene since the 1970s. OPEC could still cripple the economies of Western Europe and the US by imposing a new embargo by refusing to sell their crude oil to European countries or to the US. Since that is still the case, the US has absolutely NO business exporting any US owned or domestically produced crude oil.
Profile Pic
DanMtz
Champion Author Oakland

Posts:5,693
Points:1,753,490
Joined:Oct 2009
Message Posted: Feb 3, 2014 9:28:41 AM

Lose the bathtub analogy.
Profile Pic
MAC48
Champion Author Dallas

Posts:3,187
Points:1,239,160
Joined:Dec 2006
Message Posted: Feb 3, 2014 12:48:51 AM

Logic would seem to suggest that since the US is still importing significant quantities of foreign crude oil for various reasons which means that the US has absolutely NO business exporting crude oil unless the US is exchanging on an equal value basis quantities of US crude oil for foreign crude oil such as light crude exchanged for heavy crude.

The short term profit and economic benefits of exporting US produced crude oil is a very dumb reason to export US produced crude oil when we cannot supply 100% of all domestic supply needs today nor the crude oil needs projected for the future.
Profile Pic
YumaFellow
Champion Author Arizona

Posts:3,568
Points:1,089,830
Joined:Jan 2011
Message Posted: Feb 2, 2014 10:28:06 PM

Let's dump our big tax breaks for the oil barons first.
Profile Pic
humblepie
Champion Author Toledo

Posts:54,957
Points:2,883,740
Joined:Mar 2006
Message Posted: Feb 2, 2014 9:57:22 PM

while we still import half our daily usage ?.................stupid
Profile Pic
Night Owl
Champion Author Toronto

Posts:9,800
Points:2,291,400
Joined:Jul 2004
Message Posted: Feb 2, 2014 8:41:09 PM

Exports will only increase prices domestically.
Profile Pic
drobbbb
Champion Author Maryland

Posts:5,615
Points:1,307,695
Joined:Dec 2010
Message Posted: Feb 2, 2014 8:35:37 PM

see if we can keep big oil from changing this law
Profile Pic
DABEE1073
Champion Author San Diego

Posts:10,717
Points:2,081,300
Joined:Jun 2008
Message Posted: Feb 2, 2014 8:15:49 PM

NO EXPORTS of any crude oil or by products.
Profile Pic
glorioussnookie
Champion Author Tennessee

Posts:5,043
Points:951,065
Joined:Feb 2010
Message Posted: Feb 2, 2014 6:56:53 PM

We need to supply our own country with reasonably priced fuel and than if there is any left over export it!
Profile Pic
Amplion
Champion Author Oregon

Posts:9,201
Points:2,349,765
Joined:Sep 2005
Message Posted: Feb 2, 2014 4:32:19 PM

SHUT DOWN NPR !!!!!
Profile Pic
Ticobird
Champion Author Huntsville

Posts:4,946
Points:1,565,060
Joined:Oct 2009
Message Posted: Feb 2, 2014 4:10:30 PM

Because of the level of US energy usage we should not export US crude oil.
Profile Pic
MrLefty0706
Champion Author Chicago

Posts:3,722
Points:858,810
Joined:Apr 2012
Message Posted: Feb 2, 2014 4:02:01 PM

Keep the export bans.
Profile Pic
Discovery02
Champion Author Colorado Springs

Posts:6,930
Points:803,145
Joined:May 2012
Message Posted: Feb 2, 2014 3:19:35 PM

The article states that the theory of the "Global Bathtub" is that no one supplier can disrupt the oil market. Then what exactly happened during the OPEC Oil Embargo that can't happen now? Keep our oil exporting bans in place and process the oil here in the U.S. for U.S. consumption.
Profile Pic
drz614
Champion Author Harrisburg

Posts:4,654
Points:1,108,315
Joined:Aug 2011
Message Posted: Feb 2, 2014 2:00:48 PM

exporting oil is a bad idea
Profile Pic
BummerMan
Champion Author Dallas

Posts:3,621
Points:857,835
Joined:Apr 2011
Message Posted: Feb 2, 2014 1:34:29 PM

We should try to keep as much here as possible for our use.
Profile Pic
reidlej
Champion Author Columbus

Posts:2,195
Points:1,102,750
Joined:Jul 2011
Message Posted: Feb 2, 2014 1:21:51 PM

Allowing propane exports is killing supply and prices now, so why set up lower US supplies for crude?
Profile Pic
CaesarI
Veteran Author Augusta

Posts:429
Points:61,915
Joined:Nov 2011
Message Posted: Feb 2, 2014 12:59:10 PM

yup
Profile Pic
MPSAN2
Champion Author Tennessee

Posts:1,047
Points:268,140
Joined:Dec 2013
Message Posted: Feb 2, 2014 12:52:22 PM

ok
Profile Pic
AnObserver
Champion Author New Jersey

Posts:10,537
Points:2,737,180
Joined:Sep 2005
Message Posted: Feb 2, 2014 11:16:44 AM

Very interesting article. Oil and energy in geneal is a global market which says that there should be no restrictions on import/export. I don't think there is any proof that maintaining and export ban will lower the punp price of gas.
Profile Pic
PhilMils
Champion Author Virginia

Posts:9,461
Points:1,366,290
Joined:Dec 2008
Message Posted: Feb 2, 2014 11:14:02 AM

The companies just want higher profits for a few years to the long-term (several decades) detriment of the US.

The export of crude oil (not refined products) is currently prohibited. I would rather see a ban on the export of crude oil and the refined products, no matter what the source of either may be. If Canadian oil or oil products are brought into the US, they should be retained here for US consumption.
Profile Pic
bluebird1
Champion Author Toronto

Posts:18,049
Points:3,592,640
Joined:May 2004
Message Posted: Feb 2, 2014 10:32:20 AM

Tries to show all views but..."It's really the total amount coming in and the amount coming out that determines world oil prices." The ban isn't just worried about prices but actual access to the physical product & who the money goes to - friend or foe, in public pockets or rich oil co's, etc.
The last few paragraphs are good though.
My take, if you were deep in debt & started making good in-roads to breaking-even...then why should you stop just yrs from meeting goal to add more debt.
Profile Pic
MobileBat
Champion Author Orange County

Posts:1,798
Points:368,960
Joined:Aug 2013
Message Posted: Feb 2, 2014 10:32:17 AM

Why should we change the restriction on crude oil when there's no ban on exporting refined products? Isn't it always better to take a raw product and add value to it by refining it, in this case crude oil, and turning it into gasoline, motor oil, etc? The oil producers that want to export their crude oil should expand into building refineries instead. The oil companies have neglected that end of the industry for decades. If they build more refineries, Americans will benefit two ways. First, everytime a refinery shuts down for maintenance or an accident occurs we pay for it at the pump. Instead there would be a larger network of refined product leading to less disruption. Second, as I stated earlier, get the most value out of your product. Don't export your raw material when you can add value to it by refining crude oil into gasoline or motor oil. Even exporting refined U.S. product should have limits put on it, however, just in case the amount exported causes domestic prices to surge.
Profile Pic
Nikontraveler
Champion Author Los Angeles

Posts:1,767
Points:992,840
Joined:Mar 2011
Message Posted: Feb 2, 2014 10:32:00 AM

I agree with Tomok. In addition to refining costs, the additional Tax rate in different states also contribute to the high prices. For me it isn't so much how much the taxes are, it is the inefficiency that states spend that money. http://www.losangelesgasprices.com/Tax_Info.aspx. This is a complete list of taxes in the US on Gasbuddy.com
Profile Pic
tomok
Champion Author Portland

Posts:42,706
Points:2,856,760
Joined:Aug 2006
Message Posted: Feb 2, 2014 10:24:44 AM

'A Global Bathtub': Rethinking The U.S. Oil Export Ban. Oil supplies ran short and gasoline prices spiked four decades ago, angry drivers demanded relief. Congress responded in 1975 by banning most exports of U.S. crude oil.
Domestic oil production is booming, prompting U.S. energy companies to call for a resumption of exporting.
The US can only export refined fuel, there is NO exporting crude oil......
***DO NOT EXPORT CRUDE OIL! Exporting crude oil will raise the price at the pump MORE than what it is now!!!! A very very bad move for the US fuel consumer. We need 'cheaper' fuel prices to improve this very bad crappy 'dog and pony show' economy, to better than what it has been for the last 6 years or more. Keep the crude oil refining jobs (and income tax money) here and not in some other country.
**More Refineries are Not the Answer, Stop Exporting Fuel Is THE Answer!
*If 'they' can export that much fuel, there are enough refineries already, there are NO need for MORE Refineries! OR for any Refineries located at the 'source' of the domestic crude oil!
Take care of the domestic fuel market first and above all else before exporting and selling fuel or natural gas to other countries!
Drive vehicles with high mpg, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
Profile Pic
samk2012
Veteran Author Michigan

Posts:459
Points:183,530
Joined:Mar 2012
Message Posted: Feb 2, 2014 10:17:01 AM

Alternative energy, clean energy are better for long term problems. The rugged diesel engines are better than petrol, but petrol engines are everywhere. The mass transportation is better in more secure countries but in US it's very less usage.

Why? May be the rulers, capitalists know the answer but i don't
Profile Pic
dkp1960
Champion Author St. Louis

Posts:2,825
Points:690,050
Joined:Oct 2012
Message Posted: Feb 2, 2014 10:08:02 AM

Its all opinion.
Profile Pic
mysub
Champion Author Las Vegas

Posts:11,199
Points:2,837,405
Joined:Apr 2006
Message Posted: Feb 2, 2014 10:06:33 AM

ironbox_sara, right on.
Profile Pic
jcallaw
Champion Author Houston

Posts:2,917
Points:737,780
Joined:May 2012
Message Posted: Feb 2, 2014 10:06:28 AM

Sounds like politics.....
Profile Pic
CptnCanada
Champion Author Saskatoon

Posts:8,817
Points:1,253,770
Joined:Jun 2008
Message Posted: Feb 2, 2014 10:06:12 AM

No exports unless the price at the pump is below $2.00 and as soon as it goes over that then exports STOP.
ROTFLOL
Profile Pic
rahcat
Champion Author Grand Rapids

Posts:5,040
Points:1,173,200
Joined:Jan 2010
Message Posted: Feb 2, 2014 10:06:03 AM

NO EXPORTS!!!!!!!!!!
Profile Pic
mouse24
Champion Author Pennsylvania

Posts:1,145
Points:1,233,880
Joined:Jul 2006
Message Posted: Feb 2, 2014 10:04:40 AM

they can export oil when they STOP accepting gov't subsidies.
Profile Pic
ironbox_sara
Champion Author Albany

Posts:11,894
Points:2,740,460
Joined:Mar 2006
Message Posted: Feb 2, 2014 10:04:11 AM

Lower the price to .99 a gallon then export all you want. Thieves.
Profile Pic
Voltus
Champion Author Miami

Posts:10,731
Points:2,051,960
Joined:May 2005
Message Posted: Feb 2, 2014 10:04:01 AM

respectfully disagree: the situation on the 1975 has not changed; the Middle East remains an uncertain issue, potential for a war with Israel is growing. "Lets not forget the lessons of the past so we are prepared for what might come". Keep the ban in place to protect America's future. Build more pipelines (create jobs) and repair our infrastructure (more jobs). Put America First!!!
Profile Pic
TopSpeedAsian
Champion Author Detroit

Posts:1,137
Points:1,121,350
Joined:May 2011
Message Posted: Feb 2, 2014 10:03:50 AM

Informative.
Profile Pic
fcdriver
Champion Author Tennessee

Posts:9,480
Points:1,965,015
Joined:Sep 2008
Message Posted: Feb 2, 2014 10:01:08 AM

free trade works both ways
Profile Pic
Canucktree
Champion Author Alberta

Posts:6,714
Points:1,463,025
Joined:Dec 2008
Message Posted: Feb 2, 2014 10:00:24 AM

Idea: try refining , and see how much you use?! The US might find other industries get better when transportation costs are closer to reasonable.
Profile Pic
fordfan1
Champion Author Indiana

Posts:11,408
Points:2,400,760
Joined:Jul 2007
Message Posted: Feb 2, 2014 9:59:42 AM

Don't let them export until our oil needs are met!!!!
Profile Pic
checkum
Champion Author St. Louis

Posts:9,879
Points:1,947,685
Joined:Jan 2008
Message Posted: Feb 2, 2014 9:59:22 AM

well written by Big Oil
Profile Pic
dbecks44
Champion Author Michigan

Posts:3,502
Points:930,925
Joined:Jan 2012
Message Posted: Feb 2, 2014 9:59:12 AM

Why not just use it ourselves, so we don't have to buy from people that hate us? Seriously, is this even a debate?
Profile Pic
belladog
Champion Author Mobile

Posts:3,967
Points:1,290,665
Joined:May 2007
Message Posted: Feb 2, 2014 9:58:54 AM

get the government out of the way
Profile Pic
dieselfiendSC
Champion Author South Carolina

Posts:3,936
Points:1,324,115
Joined:Nov 2008
Message Posted: Feb 2, 2014 9:58:33 AM

Let them export.
Profile Pic
BillHeatherL
Champion Author Alberta

Posts:9,865
Points:2,394,605
Joined:Apr 2007
Message Posted: Feb 2, 2014 9:58:18 AM

things have changed a lot since the 70's
Profile Pic
VaBchDriver
Sophomore Author Virginia Beach

Posts:168
Points:1,328,220
Joined:Feb 2009
Message Posted: Feb 2, 2014 9:58:17 AM

Tie the allowable export quota to our national refined fuel pricing. Only when oil producers and refiners get a grip on our gasoline/diesel/fuel oil and lower price nationwide do they get to take advantage of exporting our resources. Otherwise, it will be easier for them to reap the profits of exporting unprocessed oil while we suffer from a double hit; lack of refining AND less oil because of exports.
Profile Pic
DABEE1073
Champion Author San Diego

Posts:10,717
Points:2,081,300
Joined:Jun 2008
Message Posted: Feb 2, 2014 9:57:24 AM

NO EXPORTS of crude oil or gasoline. Send them all of the ethanol.

[Edited by: DABEE1073 at 2/2/2014 9:56:47 AM EST]
Profile Pic
buzzieNY
Champion Author Buffalo

Posts:5,148
Points:1,128,660
Joined:Jun 2011
Message Posted: Feb 2, 2014 9:57:08 AM

Charity starts at Home, You have to take care of yourself and family before you give away what you have. What I mean is, keep the Oil Export Ban. The Oil Companies have had Record Profits for how many years now.
Profile Pic
CRAIGFOYE
Sophomore Author Fort Worth

Posts:210
Points:241,185
Joined:Feb 2013
Message Posted: Feb 2, 2014 9:55:33 AM

We don't want that to happen again regarding shortages of oil supply!!
Profile Pic
dlr17
Champion Author Twin Cities

Posts:10,694
Points:1,959,360
Joined:Aug 2003
Message Posted: Feb 2, 2014 9:55:19 AM

I agree with Indyracefan. If we start exporting, we will have more shortages here and higher prices.
Profile Pic
BartBuzz
Champion Author Atlanta

Posts:11,223
Points:2,285,745
Joined:Aug 2006
Message Posted: Feb 2, 2014 9:55:11 AM

It's the oil companies business. I would like to see the government get out of the way. It's like the XL pipeline. You can't rely on the government to do what's right much less to do it in a timely manner. Politics and business don't mix.
Profile Pic
Hangnail309
Champion Author Manitoba

Posts:8,316
Points:2,177,925
Joined:Aug 2006
Message Posted: Feb 2, 2014 9:54:45 AM

Take care of you own, first ...
Profile Pic
Mr Sixpence
Champion Author Michigan

Posts:2,284
Points:3,009,300
Joined:May 2004
Message Posted: Feb 2, 2014 9:54:16 AM

Kept US oil in the US
Post a reply Back to Topics