I truly don't get it. We are exporting millions of barrels of our oil (thanks to DRILL BABY DRILL) to other countries while our own citizens have to pay super high gas prices. We're essentially subsidizing. Why not use executive power to tax the export of oil so that domestic supply exceeds demand. That would drop prices "like a rock" overnight.
Oil companies would be mad for a while but they really have no choice. It's not like moving a factory overseas.
Oil has a bit of an unusual economic system. Oil is not 100% fungible. That is why different oils are priced differently. But they are close. Heavier oils actually deliver a better profit margin. And a lot of our refining is set up for that oil. But we are mixing in more light oil. So the companies export light sweet and import heavier oils from Canada, Mexico, Venezuela and a little from the Middle East.
As far as price goes, you can think of it as the oil going into one big pot for the world and baring disruptions, people are paying the same price. And there is a lot of oil on ships just sitting at sea to be bought on the spot market.
It sucks in the short term, but the higher prices and exports at higher prices are providing the capital for the next wave of exploration. Alaska, Greenland, and maybe New York, depending on the midterms.
I truly don't get it. We are exporting millions of barrels of our oil (thanks to DRILL BABY DRILL) to other countries while our own citizens have to pay super high gas prices. We're essentially subsidizing. Why not use executive power to tax the export of oil so that domestic supply exceeds demand. That would drop prices "like a rock" overnight.
Oil companies would be mad for a while but they really have no choice. It's not like moving a factory overseas.
Oil has a bit of an unusual economic system. Oil is not 100% fungible. That is why different oils are priced differently. But they are close. Heavier oils actually deliver a better profit margin. And a lot of our refining is set up for that oil. But we are mixing in more light oil. So the companies export light sweet and import heavier oils from Canada, Mexico, Venezuela and a little from the Middle East.
As far as price goes, you can think of it as the oil going into one big pot for the world and baring disruptions, people are paying the same price. And there is a lot of oil on ships just sitting at sea to be bought on the spot market.
It sucks in the short term, but the higher prices and exports at higher prices are providing the capital for the next wave of exploration. Alaska, Greenland, and maybe New York, depending on the midterms.