T. Boone Pickens build a case for the United States to stop purchasing oil from our enemys in the mid-east.
It is hard to understand why the political climate does not understand the power of the United States
that now has the ability to produce our own energy needs. Stopping fracking when our national debt is about to bury this country is tanamount to political suicide and cutting our own national throat.
Something is so wrong with this picture that the only conclusion I can come to is that someone is being paid lots of money to make sure that this country does not understand the power of our own resource.
This is so amazing that it defies belief - this country is going broke- we pay huge amounts of money to purchase energy from our own enemies that we do not need to purchase.....!!! We could change the whole balance of power and the administration and political hacks want to ban fracking?????
Doesn't a lot of our oil come from Alberta?
Yes, that's right. Some does come from northeast British Columbia, but most comes from Alberta. Most of that is heavy crude which is the preferred feedstock at most U.S. refineries on the Gulf coast as well as BP's Whiting and Toledo refineries, Marathon's Detroit refinery, Flint Hills/Koch's Superior, Wisconsin refinery and Husky's Lima refinery. Canada is our largest crude supplier.
Saudi Arabia is our second largest supplier, also of heavy crude. Virtually all of that goes to Aramco's 100%-owned Motiva refinery in Port Arthur. That's America's largest refinery; 600,000 bbls/day. Some of that may also go to Shell's two refineries in Louisiana as well as to Marathon's Garyville LA plant.
T-Bone is right IMHO. It's not about the politics,not about the climate,not about supply/demand/market share. It's all about the money. People will do almost anything if you give them enough of it. The more you have of it,the more powerful you become. So yea, just follow the $$$ ,if you could, Then you'll see what's really goig on in the oil patches,worldwide.
Crude oil is a global commodity. The price is set in London (Brent) or Cushing (WTI) and is determined by supply and demand balances. The lower your cost of production ("lifting" costs), the higher your profits, whatever the price may be. In North America, our lifting costs range from a low of $10/bbl (very rare) to something like $60/bbl (fortunately also rare) while Saudi lifting costs are $5 or $6/bbl, the lowest in the world (just a few years ago, it was around $1.50/bbl!!).
I don't understand what sort of tax incentives would stimulate oil companies in the U.S. to sell oil in the U.S. If supplies exceed demand and lower taxes stimulate higher production (i.e. supplies), wouldn't that depress prices, lower profits, cut down drilling and related economic activity? The only two places in the U.S. where I see production increasing is in the Utica and Permian plays which have the lowest U.S. lifting costs.
If the price of oil on the world market is XXXX(market price)
If American companies purchase oil NOT from mid-eastern cartel
and this government would give those purchases a tax-incentive,
could that not create more dollars for this country or at least countries
that are more favorable to our economy. Or what can this country do
to give us more independence from ME oil????
I understand its about the money, the mid eastern oil cost of production is much cheaper and they now are selling below our cost of production. We are sending billions of dollars to our enemy, that makes no sense. The United States government should subidize the oil companies in this country
by giving income tax incentives if they sell the oil in the United States. We would have thousands of more jobs, billions of dollars for energy would stay in THIS country, our total economy would improve and our enemys would have less power because they would have a lot less MONEY.
Follow that MONEY!!!! TRUMP IS A DEAL MAKER AND WOULD FIGURE TH
We only import crude from three middle-east countries: Saudi Arabia (our 2nd-largest supplier after Canada), Iraq and Kuwait (7th and 8th largest suppliers to the U.S.) for about $5 billion a year. If Iraq and Kuwait are our enemies, why did we go to war for them? With the exception of the Yom Kippur war, Saudi Arabia has been a reliable supplier which can't be said for any other mideast supplier. Is that the behavior of an enemy?
The IMF, World Bank and the WTO have long been pleading for eliminating subsidies because they distort market dynamics. At long last, that is being done, most aggressively by Indonesia, Malaysia, Saudi Arabia and Kuwait.
I think it would be a grave mistake to introduce subsidies to American oil companies. The dangers of subsidies are most clearly seen in Indonesia, Mexico and Saudi Arabia. In those countries, residents paid on the order of ten cents a gallon for gasoline when the cost of production dictated that the price should be more on the order of $2.50/$2.75 per gallon. Who makes up the difference? In Mexico it was Pemex and in Indonesia it was Pertamina, the national oil companies. In those two countries, the national oil companies for many years had no profits to maintain their physical plants, make new investments to maintain production and often failed to meet payrolls. As a result, their petroleum industries are on life support and not sustainable. Saudi Aramco avoided the same fate but they recognize the danger and are steadily phasing out subsidies across the board.
Stop purchasing oil from our enemies in the mideast????? Here is a list of the top 10 countries the U.S. imported crude oil from as of January 2016 according to the EIA. The only countries I can identify as genuine enemies of the U.S. are Ecuador and Venezuela but imports from there pale compared to imports from Canada and Saudi Arabia. I, for one don't consider Saudi Arabia an enemy.
Crude oil imports (Top 15 countries)
(thousand barrels per day)
|Country||Jan-16||Dec-15||YTD 2016||Jan-15||YTD 2015|
T Boone Pickens is right no matter who we are buying from. Our economy is suffering while we make others rich by ignorantly not cultivating our own resources. Look at the loss of jobs just in the last year. Good paying jobs too!!! Those who follow Sanders are nothing but empty minded anti-American robots. Sickening!!!
This is something that I learned at a NARO conference last year. It is not that we really need to import oil, but that oil refineries on our shores are owned by companies from other countries. These companies then bring the oil from their countries to their refineries on US soil to be refined. These barrels of oil are then charged to our economy as imported oil. I believe it is 25% of our barrels of oil consumption is considered imported. This came from a guest speaker, not a NARO leader. I would need to go through my notes for more info if requested. The ban on exporting US oil was lifted just a few months ago. Another problem with the refineries on our shores, is the ability ( or disability) to handle various types of crude oil: light,sweet crude, heavy crude, and the sands crude oil.
We as a nation have cut our consumption of oil immensely. That, combined with our ability to produce shale oil has OPEC upset.