US is exporting gasoline for the first time since 1960

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    Dec 05, 2011 10:05 PM GMT
    Thank god for fuel efficient cars...

    http://money.cnn.com/2011/12/05/news/economy/gasoline_export/index.htmThe country exported 430,000 more barrels of gasoline a day than it imported in September, according to the U.S. Energy Information Administration. That is about twice the amount at the start of the year, and experts and industry insiders say the trend is here to stay.

    The United States began exporting gas in late 2008. For decades prior, starting in 1960, the country used all the gas it produced here plus had to import gas from places in Europe.

    But demand for gas has dropped nearly 10% in recent years. It went from a peak of 9.6 million barrels a day in 2007 to 8.8 million barrels today, according to the EIA.


    Of course, that doesn't mean that gas is going to be cheaper in the US dramatically...it just means that exporting gasoline brings in more money for those making it than selling it in the US:

    OPTo be sure, the United States is still importing plenty of oil to make that gasoline -- and is still dependent on foreign countries for well over half the crude it uses. (Read: OPEC: We want clean energy.)

    But now the country's massive refining infrastructure is producing more gasoline, diesel and jet fuel than the United States needs, freeing it up to be exported to places like Brazil, Mexico and Chile where demand is still strong.
  • creature

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    Dec 06, 2011 12:03 AM GMT
    I'm looking forward to when we start using algae. Even the US Navy has done a test run on fueling a ship with algae. The only problem is the cost.
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    Dec 06, 2011 12:19 AM GMT
    Affordable gasoline would be nice and what a boost to the economy it would be. I think the greedy are finding out that eventually those who buy the product will seek out alternatives.
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    Dec 06, 2011 12:39 AM GMT
    If you read the entire article..... it also exposes the BULLSHIT LIE the oil industry has used for years!

    "the price of gas must be raised because we dont have the "REFINING" capacity." <<< how many times did they use that bullshit line???
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    Dec 06, 2011 12:47 AM GMT
    Free trade uber alles:

    http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2011/12/03/MN8I1M7LAV.DTLTo some oil industry critics, the exports look like a deliberate effort to squeeze American drivers. Shipping fuel abroad, they say, prevents the domestic market from responding to weak demand the way it used to - by lowering prices.

    "It's a way to keep prices up," said Judy Dugan, research director with the Consumer Watchdog nonprofit group. "Overseas consumers are benefiting at a cost to domestic consumers."

    Oil industry representatives bristle at that notion.

    "That's just complete rubbish," said John Felmy, chief economist with the American Petroleum Institute lobbying group. The exports, he said, are helping keep afloat American refineries that have seen their profit margins shrivel in recent years.


    So if profit margins are shriveling in recent years, wouldn't MORE refining capability further reduce profit margins? icon_lol.gif
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    Dec 06, 2011 12:50 AM GMT
    q1w2e3 saidFree trade uber alles:

    http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2011/12/03/MN8I1M7LAV.DTLTo some oil industry critics, the exports look like a deliberate effort to squeeze American drivers. Shipping fuel abroad, they say, prevents the domestic market from responding to weak demand the way it used to - by lowering prices.

    "It's a way to keep prices up," said Judy Dugan, research director with the Consumer Watchdog nonprofit group. "Overseas consumers are benefiting at a cost to domestic consumers."

    Oil industry representatives bristle at that notion.

    "That's just complete rubbish," said John Felmy, chief economist with the American Petroleum Institute lobbying group. The exports, he said, are helping keep afloat American refineries that have seen their profit margins shrivel in recent years.


    So if profit margins are shriveling in recent years, wouldn't MORE refining capability further reduce profit margins? icon_lol.gif
    as I stated in my posts above..

    I rest my case!
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    Dec 06, 2011 1:01 AM GMT
    The reason that profit margins have been artificially kept up is due to consolidation of the refining market by the big oil companies:

    http://www.citizen.org/cmep/article_redirect.cfm?ID=11829
    Myth 2: The U.S. oil refinery market is competitive.

    Fact: Actually, industry consolidation is limiting competition in oil refining sector. The largest five oil refiners in the United States (ExxonMobil, ConocoPhillips, BP, Valero and Royal Dutch Shell) now control over half (56.3%) of domestic oil refinery capacity; the top ten refiners control 83%. Only ten years ago, these top five oil companies only controlled about one-third (34.5%) of domestic refinery capacity; the top ten controlled 55.6%. This dramatic increase in the control of just the top five companies makes it easier for oil companies to manipulate gasoline supplies by intentionally withholding supplies in order to drive up prices. Indeed, the U.S. Federal Trade Commission (FTC) concluded in March 2001 that oil companies had intentionally withheld supplies of gasoline from the market as a tactic to drive up prices—all as a “profit-maximizing strategy.” A May 2004 U.S. Governmental Accountability Office (GAO) report also found that mergers in the oil industry directly led to higher prices—and this report did not even include the large mergers after the year 2000, such as ChevronTexaco and ConocoPhillips. Yet, just one week after Hurricane Katrina, the FTC approved yet another merger of refinery giants—Valero Energy and Premcor—giving Valero 13% of the national market share. These actions, while costing consumers billions of dollars in overcharges, have not been challenged by the U.S. government.
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    Dec 06, 2011 1:41 AM GMT
    q1w2e3 saidThe reason that profit margins have been artificially kept up is due to consolidation of the refining market by the big oil companies:

    http://www.citizen.org/cmep/article_redirect.cfm?ID=11829
    Myth 2: The U.S. oil refinery market is competitive.

    Fact: Actually, industry consolidation is limiting competition in oil refining sector. The largest five oil refiners in the United States (ExxonMobil, ConocoPhillips, BP, Valero and Royal Dutch Shell) now control over half (56.3%) of domestic oil refinery capacity; the top ten refiners control 83%. Only ten years ago, these top five oil companies only controlled about one-third (34.5%) of domestic refinery capacity; the top ten controlled 55.6%. This dramatic increase in the control of just the top five companies makes it easier for oil companies to manipulate gasoline supplies by intentionally withholding supplies in order to drive up prices. Indeed, the U.S. Federal Trade Commission (FTC) concluded in March 2001 that oil companies had intentionally withheld supplies of gasoline from the market as a tactic to drive up prices—all as a “profit-maximizing strategy.” A May 2004 U.S. Governmental Accountability Office (GAO) report also found that mergers in the oil industry directly led to higher prices—and this report did not even include the large mergers after the year 2000, such as ChevronTexaco and ConocoPhillips. Yet, just one week after Hurricane Katrina, the FTC approved yet another merger of refinery giants—Valero Energy and Premcor—giving Valero 13% of the national market share. These actions, while costing consumers billions of dollars in overcharges, have not been challenged by the U.S. government.


    Smells like breach of antitrust.