The US is a net exporter of oil. If we put price and export controls on domestic oil we could let them keep the strait closed and not suffer any increase in gas prices.
It’s just that export and price controls cut into the profits of the oil corporations, who have been making bank off this and are the real winners of this whole thing, and trump would never let that happen.
The majority of US refinery capacity is designed to process the heavy crude we import from elsewhere, the light crude we extract domestically is newer industry that doesn’t have equivalent refinery capacity, that’s why we export it and why we’re a net exporter overall. Our extraction and refinery mismatch is why your plan wouldn’t work. We would instead burn quickly through the < 4 months of national oil reserves we have left.
Is there much heavy crude coming out of the strait? I always thought gulf oil was pretty light and the heavy shit mostly came from Venezuela and Canada who would be uneffected by the strait being close.
It is, and most of it goes to Asia, but since oil demand is just barely met all over the world a supply shortage anywhere is felt everywhere through rippling demand. But I was just explaining why a closed-door domestic oil policy wouldn’t work in the USA despite our net export. Under any foreseeable global demand regime.
The world economy, including the US, depends on that strait.
Yes, and the US could just ignore that. It didn’t stop them from starting the war in the first place, after all.
Dementia Don didn’t think about the strait when he attacked and fired anybody in his admin that would have been against it.
Yes, you may see an economic downturn. Losing a war generally doesn’t result in sunshine and rainbows.
The US is a net exporter of oil. If we put price and export controls on domestic oil we could let them keep the strait closed and not suffer any increase in gas prices.
It’s just that export and price controls cut into the profits of the oil corporations, who have been making bank off this and are the real winners of this whole thing, and trump would never let that happen.
The majority of US refinery capacity is designed to process the heavy crude we import from elsewhere, the light crude we extract domestically is newer industry that doesn’t have equivalent refinery capacity, that’s why we export it and why we’re a net exporter overall. Our extraction and refinery mismatch is why your plan wouldn’t work. We would instead burn quickly through the < 4 months of national oil reserves we have left.
Is there much heavy crude coming out of the strait? I always thought gulf oil was pretty light and the heavy shit mostly came from Venezuela and Canada who would be uneffected by the strait being close.
It is, and most of it goes to Asia, but since oil demand is just barely met all over the world a supply shortage anywhere is felt everywhere through rippling demand. But I was just explaining why a closed-door domestic oil policy wouldn’t work in the USA despite our net export. Under any foreseeable global demand regime.