The supply of world oil isn't meeting demand, so oil producers will sell their oil to who is sucking it down faster. Our slowing economy isn't the equal demand for oil like china +India, the world's most populated countries.
When the US economy picks up and demand increases, the key is the oil staying here or else the cost of gas in the US will climb more.
I'm sorry. I don't think you answered my question....
I can answer that, and don't worry, most left-wing political hacks ask the same thing over and over again anyway. So, you're not alone in your ignorance.
You're absolutely right, we DO export 30% of some of the refined products to other countries. Here's a little clue for you. There are zones in the United States where products from one zone CANNOT get to the other zones without being either 1. trucked at a very great expense OR 2. shipped through the panama canal at an even greater expense. It is VERY COMMON to have a shortage of one type in say California and have a glut of the same material in say Kansas. However, that also does not take into account that the gasoline used in Kansas CANNOT be used in California.
There IS NOT and there NEVER HAS BEEN a pipeline that ships crude oil east or west over the Rocky Mountains. Likewise the Sierra's. Therefore, oil that is pumped out of the ground in say west Texas, goes via pipeline to the refineries on the gulf. MOST of the active and reopenned wells in the United States are now in the central plains (North Dakota, west Texas, Pennsylvania). The oil goes either straight to the refineries on the gulf OR is stored for a short period of time in the storage facility at Cushing, OK. BUT, Cushing only stores one million barrels when it's full.
Once refined, there are methods of getting that produce to the plains and to the eastern half of the country (older pipelines BEFORE the tree hugger craze). BUT, if you want a California refinery to get crude, you've got to either load it onto an oil tanker OR you've got to truck it. Imagine the cost that will add to the price. Additionally, everyone KNOWS that California, Oregon and Washington does NOT burn the same blend of fuel that other states do. Being 'green' they've decided they want to demand refineries to provide them their own blend. IF you're a refinery on the coast, thats a no win situation, because if you can't ship it via the canal, then you're stuck with gasoline that no one else wants.
Since a majority of the crude now goes to the gulf, it is refined there. Thanks to all of you tree huggers, pipelines carrying refined products are minimal, IF the product once refined can even use a pipeline. Add to the mix treaties and other 'aid' that is agreed to by Washington and you have a situation where a glut of one product on the gulf coast cannot be used to solve a scarcity on another coast.
We get a lot of our crude from Canada, Mexico and the Middle East. When that crude hits the refineries, storage is limited. And lets remember, this is a BUSINESS. If you buy a barrel of oil for $100 and you refine it into gasoline, you're going to have to store it until it's needed. If demand decreases because of the price, how long you going to store it until you want it sold and used? You want to store it the least amount of time that you have to, so you sell it to the highest bidder. If that bidder is Israel, Britain, or the European Union, you don't really care.
I assure you that if gasoline was $2.50 a gallon, exports would drop and consumption would increase. It's something you left-wingers don't really understand... supply and demand.