U.S. Gas Exports Force Drivers Into Bidding War With Mexico At Pump

Discussion in 'Politics' started by Synthaholic, Feb 24, 2012.

  1. Synthaholic
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    Synthaholic Platinum Member

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    U.S. Gas Exports Force Drivers Into Bidding War With Mexico At Pump



    WASHINGTON -- Conservation, high prices, and hard times have led American motorists to dramatically decrease the amount of gasoline they buy.


    But how are they rewarded? With even higher prices, in part because American refiners have started exporting enormous amounts of American gasoline to Mexico and other countries.


    Exports of petroleum products -- mostly diesel and gasoline -- have increased sharply in the last two years, to about a billion barrels in 2011. For the first time, the U.S. is exporting considerably more finished products (though not crude) than it's importing.


    Around 3 million barrels of petroleum products are sent abroad each day. For some perspective, consider that all U.S. motorists combined use around 8 million barrels of gasoline a day.


    The top countries receiving the exports are Mexico, Canada, the Netherlands, Brazil, Singapore, Chile, Panama, Japan and China.


    Most of the ongoing increases in gas prices can be traced to geopolitical concerns and rampant financial speculation that have run up the cost of crude oil. And yet, if U.S. refiners limited themselves to domestic sales, there would be a glut on the market, and diesel and gasoline prices would inevitably drop.


    "The other countries are willing to pay more than we would," said James Hamilton, an economics professor and blogger at the University of California, San Diego. "And that's the price we pay, too, what they're willing to pay."


    Hamilton said that's how things work in a global market. "If you are a refiner and you've got gasoline to sell, you want to sell it where you can get the highest price," he said. "If Mexico is willing to pay a higher price to Americans, you're going to want to sell it to them instead of Americans."
    So what can be done to help out American motorists?


    "I do not support an outright ban of exports," said Tyson Slocum, director of the energy program for the consumer watchdog group Public Citizen. "And I don't want to see the government regulating retail prices. But I don't think that it is in our best interests to be exporting at the rate at which we are."
     
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  2. Synthaholic
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    Synthaholic Platinum Member

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    [​IMG][​IMG][​IMG]


    So, this is fine with everyone?
     
  3. Baruch Menachem
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    Baruch Menachem '

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    US refiners produce product, their workers are employed.


    the price of a product is determined by worldwide demand and world wide supplies. All that is different is US refiners are part of the Mexican supply chain.

    being upset about how the workings of the supply demand equation works is like being upset at the law of gravity or grumbling about the limit on the speed of light. Trying to alter it for your own advantage only leads to problems, and when the interference is severe, disaster.
     
  4. Synthaholic
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    Synthaholic Platinum Member

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    Then please admit that building the Keystone pipeline will not reduce costs for fuel in the U.S.
     
  5. occupied
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    occupied Gold Member

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    It's not fine but no one has the guts to screw with the petrodollar for any reason. We are at the mercy of the petrochemical industry and that is all there is to it. Kind of puts the lie to "drill baby, drill" as the answer to our energy needs, even with a rare surplus they still manage to create price spikes.
     
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  6. VaYank5150
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    VaYank5150 Gold Member

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    What your article describes is capitalism. What do you want anyone to say? We are a capitialistic society?
     
  7. VaYank5150
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    VaYank5150 Gold Member

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    This was a no-brainer. Anyone who thinks otherwise, should think again.
     
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  8. Synthaholic
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    Synthaholic Platinum Member

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    Where are the posters who keep saying that Keystone will lower our fuel prices?
     
  9. Synthaholic
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    Synthaholic Platinum Member

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  10. Mr Clean
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    Mr Clean Gold Member

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    Bigger profits for the oil companies mean lower prices at the pump for us, right?
     
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