Sunday, October 18, 2015

U.S. Oil refiners against U.S. oil driller and Shale oil miners

There is a war within the war on oil. It is a subset of the low prices set mostly by Saudi Arabia so their country doesn't (cease to exist as a government) because of ISIS, Iran and Russia.

So, Oil driller and Shale oil miners are being driven out of business faster and faster in the U.S. especially smaller ones not connected to big oil companies. So, pressure has been put on Congress to allow the U.S. to export Crude oil so many smaller oil drillers and shale oil miners don't have to go out of business now. The house has passed such a bill to allow crude oil to leave the country. However, even if it ever sees Obama's desk he is sure to veto it.

Then the next level would be refiners in the U.S. not wanting Crude oil to leave the U.S. because this would undercut them and potentially long term put them out of business. IF U.S. refiners were put out of business by shipping U.S. crude overseas this would be a bad thing long term because the U.S. would lose refining capacity much like when foreign countries starting buying west coast timber and milling timber in ships past 20 miles out in the ocean from the west coast and put all the mills out of business on the west coast of the U.S. then. So, this is a similar problem for now.

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