1. We're in competition with a world market for oil.. yet we have undeveloped oil sources that can be tapped, more than enough to supply north american (and only north american) demands right here. We can't 'go get it' because the 'greenies' got exploration banned. The bans must be lifted. There's enough American crude for the American, Canadian and Mexican market if we go get it and outlaw exporting North American crude or North American refined product.
Estimates for the amount of oil in reserves in America are far lower than that. If they were exploited, it could account for about 10% of US oil consumption. As more than 60% is currently imported, imports would still make up more than 50% of US consumption.
2. Refining capacity is down. While we can still refine enough for domestic needs.. a fair portion of the oil we refine is exported. Stop refined oil exports. Not a drop of US refined oil should be exported till we are NOT dependant on OPEC oil. Next, start a development program for new refineries and methods.. BUILD again.
The US imports a lot of refined products, and exports very little.
According to the BP annual survey of the world oil industry, as of 2004 the US imported 10,038,000 barrels of crude a day, and exported 38,000 barrels of crude a day. In terms of refined products, the US imported 2,860,000 barrels a day, and exported 953,000 barrels a day.
So refined exports are about a third of refined imports, and the US has net imports of over 1.9 million barrels of refined products a day.
3. Short Term.. Toss in the towel on the middle east's oil. If we have to 'go abroad' to secure oil, lets make it Canada and Mexico. Both countries are linked to us economicaly and physically. Who in America, Mexico or Canada would give a rats bellybutton about OPEC 'demands' when they cannot 'turn off our tap'?
The US, Canada and Mexico between them produced 14.15 million barrels a day in 2004. US consumption was over 20.5 million barrels a day, including Mexico and Canada consumption was over 24.6 million barrels a day. So North America needs imports of over 10.5 million barrels a day. To put that in perspective, Saudi Arabia produces 10.5 million barrels a day.
Very little oil actually leaves North America to go elsewhere. Of Canada's 2.15 million barrels a day, 4,000 barrels go to S&C America, 15,000 barrels to Europe, 10,000 to Japan. Mexico and the US both export more, but it's still a tiny fraction of North American production. Out of total NA production of 14.15 million barrels a day, only 1.45 million barrels a day are exported, and over 10 million barrels imported.
As I see it, without a wall of text; our gas prices were lower than most other places in the world because we were the worlds largest crude oil customer and refined products exporter.
Prices to the US consumers were lower because most of the developed world taxes gasoline heavily. In terms of actual untaxed/subsidised price, the US was no better or worse than many countries.
We need to change how we do business with regards to crude and refined products... and we need to STOP doing business with the OPEC theives... Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
If you stop doing business with Opec, North America has to find 10 million barrels a day of imports from somewhere. Saying you won't buy off the major suppliers is going to push your prices up, not down.
Lastly.. the oil companies themselves. Time to whack 'em with an export tax. If oil products leave this country they do so with a huge tarrif attached. High enough that they will make more money putting the product in front of american consumers than they would if it goes to china.
US exports are mostly of speciality products. Trying to restrict movements will increase refining costs, not decrease them. As it is, the US exports tiny amounts of oil to China (15,000 barrels a day in 2004, compared to Chinese exports of 20,000 barrels a day to the US)
Looking at the Bp chart showing world oil movements, there are only 2 places in the world the US exports more oil to than it recieves oil from, Australasia and Japan. The US exports 98,000 barrels a day to them, and imports 36,000 barrels a day from them.
Stopping exports isn't going to help when you are a huge net importer. In fact, if other countries retaliate with their own export taxes on oil going to the US, you will find yourselves paying a lot more for oil, not less.
