quote:Would lifting the ban not benefit E&P companies who aren't fully integrated?
Lifting the crude export ban is unnecessary. Refineries and petrochemical plants are working full blast and exporting most of what they produce. You can't export crude but you can export refined products.
If you're interested in how refineries determine how to blend feeds and what quantities of products to produce, check out linear programming.
Houston..we have a problem....
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Last: 8 days ago by Sims
What is the purpose of the export ban from the governments perspective?
It was written during the oil embargo to prevent domestic producers from exporting crude when the US itself was in serious need of oil to make gasoline/etc. The embargo ended long ago but the ban stayed in place. It's a relic.
Lifting the ban is helpful in a situation where we are bringing up more oil than we can refine.
As you said, the refineries are running flat out, but we are still increasing the amount in storage. That is, of course a short term solution. with the ban in place, either production will be cut (currently underway anyway) and/or refining capacity will increase. Long term, there is not need to export crude, if you can refine it here (jobs) and sell a more valuable product (balance of trade).
As you said, the refineries are running flat out, but we are still increasing the amount in storage. That is, of course a short term solution. with the ban in place, either production will be cut (currently underway anyway) and/or refining capacity will increase. Long term, there is not need to export crude, if you can refine it here (jobs) and sell a more valuable product (balance of trade).
Is that Noble Energy or Noble Drilling?
It is also hypocritical to be a country of freedom of we cannot put our goods on a free global market, regardless of the outcome.
quote:
It is also hypocritical to be a country of freedom of we cannot put our goods on a free global market, regardless of the outcome.
Totally agree. The ban should be removed simply on the grounds of less interference with the free market.
I don't expect it to happen in before the next presidential election, though. Insert some argument by the current administration that exporting oil will lead to increased CO2 emissions, just like the refusal to build the keystone pipeline.
Access to hydrocarbons might lead to more consumption which would by reaction produce more CO2, but that would probably boost the Big oil economy.
I'm not ocnvinced the argument would be that intricate and logical.
Much more like
Oil = bad. And then make up some stuff that sounds good to justify it.
Keystone argument has boiled down to tar sands oil produced more CO2 so no pipeline. Except, not having the pipeline did not stop development of tar sands fields. The Canadians are still selling the oil to the U.S. by train, and will eventually figure out how to transport it to the west coast and sell it to China. Pipeline or not, that oil is still going to be pulled out of the ground (assuming the market price supports the development).
Now, if Buffet had shares of a shipping company with lots of oil transporting capacity, things might be different.
Much more like
Oil = bad. And then make up some stuff that sounds good to justify it.
Keystone argument has boiled down to tar sands oil produced more CO2 so no pipeline. Except, not having the pipeline did not stop development of tar sands fields. The Canadians are still selling the oil to the U.S. by train, and will eventually figure out how to transport it to the west coast and sell it to China. Pipeline or not, that oil is still going to be pulled out of the ground (assuming the market price supports the development).
Now, if Buffet had shares of a shipping company with lots of oil transporting capacity, things might be different.
Mr. Obama hasn't been kind to Mr. Buffet the last couple years.
quote:The Keystone veto was pretty nice for Buffet though.
Mr. Obama hasn't been kind to Mr. Buffet the last couple years.
quote:
Lifting the crude export ban is unnecessary. Refineries and petrochemical plants are working full blast and exporting most of what they produce. You can't export crude but you can export refined products.
If you're interested in how refineries determine how to blend feeds and what quantities of products to produce, check out linear programming.
I would support this BS argument if I was downstream. Reality is refineries are desperately trying to keep the control they were gifted decades ago. This ban only benefits refineries at the expense of everyone else.
quote:
Heard ENXP laid off half its workforce.
Half? Overall? Technical? Field?
quote:
Is that Noble Energy or Noble Drilling?
Energy
Buffet has said many times that we should build the pipeline.
50% reduction overall. I'm not sure on how that broke down by department yet.
quote:I agree. It is antiquated policy.quote:
Lifting the crude export ban is unnecessary. Refineries and petrochemical plants are working full blast and exporting most of what they produce. You can't export crude but you can export refined products.
If you're interested in how refineries determine how to blend feeds and what quantities of products to produce, check out linear programming.
I would support this BS argument if I was downstream. Reality is refineries are desperately trying to keep the control they were gifted decades ago. This ban only benefits refineries at the expense of everyone else.
quote:He just said it again last week on CNBC. Everyone knows it should have been allowed but became a political symbol for Obama and the environmentalists, defying any common sense.
Buffet has said many times that we should build the pipeline.
quote:quote:He just said it again last week on CNBC. Everyone knows it should have been allowed but became a political symbol for Obama and the environmentalists, defying any common sense.
Buffet has said many times that we should build the pipeline.
I place near zero faith in what a guy like Buffet says publicly. Saying that the pipeline should be built on tv means nothing. What matters is what he says in private conversations with his fellow power brokers, and we have no idea what he says in those conversations.
Buffet owns the BN. Is that the railroad that transports the tar sands from Canada? I know the BN goes into Louisiana, but I'm unsure if it it the primary carrier.
As in energy & exploration partners? Or is there another ENXP I don't know about?
quote:
Buffet has said many times that we should build the pipeline.
If Buffet really had wanted Keystone built he would have supported McCain and Romney but he supported Obama when it counted. Buffet is a lier!
quote:
It is also hypocritical to be a country of freedom of we cannot put our goods on a free global market, regardless of the outcome.
Country of freedom? ::spits drink on keyboard:: We are still talking about the US, right? The economy and equity markets are controlled by central banks, picking winners and losers. Janet Yellen is probably swapping notes with the CCCP. Our economy is no less artificial than the Chinese. Try living outside the United States for a while and you'll experience just how "free" you are as an American citizen.
Maybe lifting the crude export ban would be beneficial, maybe not. The whole reason the ban was put in place was because of the Saudis 40 years ago. There may be other considerations besides profit alone.
1. Status quo: Crude export ban is maintained. Refiners reap the benefits from artificially "cheap" crude. US Refiners are able to sell their refined products cheaper since they have a cheaper input cost than their global competitors. This also drives down the cost of crude on the global market. If I can buy a refined product cheaper from the US, it's a whole lot harder to buy the crude, refine it, and still be cost competitive with US products.... this puts downward pressure on crude overall.
2. The US decides to lift the crude export ban. Saudi Arabia is still dedicated to crushing US production/not losing market share. In addition to Saudi's efforts to not lose market share (i.e. flooding the market with oil until they hit their own cost of production), you know have American producers desperate for cash flow entering the global market, pumping as much as they can as long as they are CF+. Maybe I'm missing something here, but how do you expect a price gain by attempting to dump more oil on the global oil market???
Oversupply is oversupply. The global economy is not doing well.
"Absent further unexpected OPEC disruptions, we expect Brent oil prices and timespreads to reverse their recent strength although the lack of a meaningful build in the past few months leaves risk to our forecast for oil prices remaining at $40/bbl for two quarters skewed to the upside." - Goldman
That's right.
quote:quote:
It is also hypocritical to be a country of freedom of we cannot put our goods on a free global market, regardless of the outcome.
Country of freedom? ::spits drink on keyboard:: We are still talking about the US, right? The economy and equity markets are controlled by central banks, picking winners and losers. Janet Yellen is probably swapping notes with the CCCP. Our economy is no less artificial than the Chinese. Try living outside the United States for a while and you'll experience just how "free" you are as an American citizen.
Maybe lifting the crude export ban would be beneficial, maybe not. The whole reason the ban was put in place was because of the Saudis 40 years ago. There may be other considerations besides profit alone.
1. Status quo: Crude export ban is maintained. Refiners reap the benefits from artificially "cheap" crude. US Refiners are able to sell their refined products cheaper since they have a cheaper input cost than their global competitors. This also drives down the cost of crude on the global market. If I can buy a refined product cheaper from the US, it's a whole lot harder to buy the crude, refine it, and still be cost competitive with US products.... this puts downward pressure on crude overall.
2. The US decides to lift the crude export ban. Saudi Arabia is still dedicated to crushing US production/not losing market share. In addition to Saudi's efforts to not lose market share (i.e. flooding the market with oil until they hit their own cost of production), you know have American producers desperate for cash flow entering the global market, pumping as much as they can as long as they are CF+. Maybe I'm missing something here, but how do you expect a price gain by attempting to dump more oil on the global oil market???
Oversupply is oversupply. The global economy is not doing well.
I agree with the majority of your post. But you're ignoring the $10/barrel price spread between Brent and WTI. WTI is a higher quality product than Brent, and is selling for $10/barrel less than its inferior counterpart. Allowing te exportation of American crude would allow American producers to ship their crude elsewhere for refining, where they could sell it for a higher price than what domestic refineries are willing to pay. That would ultimately lessen the spread between American and global oil prices, which would be to the benefit of American producers who are currently forced to sell their crude on the cheap to American refineries, when they could be selling it for up to $10/barrel more note international market.
You're correct that the overall effect of allowing American crude to compete on the international market would be to bring down the global crude price, but it would bring the price of domestic crude up in the process by leveling that playing field.
Good post. I knew I was leaving something out. I (incorrectly) assumed Brent was a higher grade than WTI.
quote:
If Buffet really had wanted Keystone built he would have supported McCain and Romney but he supported Obama when it counted. Buffet is a lier!
Maybe it wasn't an important topic for him.
Buffet is a lier.... He is a lot of things, and a lier is about as far from the truth as possible. You might disagree with his political leanings, but put the name calling card in your back pocket. It's childish and only takes away from any valid point you might present.
Please everyone....stop typing "lier"
Buffett prolly owns a fleet of lier jets.
I was waiting for the liar vs. lier. I didn't want to be a smartass and say I bet he enjoys a little recline every once and a while.
quote:
Please everyone....stop typing "lier"
Please.
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