Gas Prices Near You?

[BigPapaKain]

(06-03-2022, 10:57 PM)Stewy Wrote: Ok since I'm telling you things you already know then I suppose you know this too.

Our imports are 0% politically motivated and 100% economically related.  They are associated with trades between oil companies to balance refinery capacities around the world.  Or BTU for BTU swaps of oil for Natural Gas (or vice versa) for other economic reasons.

Hypothetical Example:  XOM just started production in Guyana and it has a large portion of heavy oil.  They have enough heavy oil at their disposal to keep their own refineries at capacity, but they have a lack of sweet light crude for their other refineries.  BP has a UK refinery that needs heavy oil to stay at 95%+ capacity, so they trade oil with Exxon.  Exxon's Guyana oil goes to England, and BP light crude goes to an XOM refinery in the states.  On the books it looks like we're importing oil.  When is reality all it is was a swap to keep refineries going.  And it had 0% to do with politics.

I think we're saying the same thing?

I never actually said saving our domestic oil was a political maneuver. In the global oil economy, the people sitting on deep reserves tend to have more bargaining power. The only reason Saudi Arabia isn't a glass hellscape is because sand and dirt is easier to dig through than glass. That being said, as those wells dry up, the world is going to move to the next country to suck dry. And on and on and on. Eventually as a country, from and economic standpoint, it makes sense to have the fattest reserves in the ground so you can set the prices and make the fattest profits.

Even with the world pushing towards renewables, we'll be on the teet of fossil fuels for the foreseeable future given the logistics in switching over the power grids of established nations. Until green can be achieved globally, you don't sell off your bargaining chips until you can get maximum returns.

I'm terrible at explaining my thoughts; too many chair shots as a kid I suppose. Sorry if that all seems like the ravings of a lunatic.