DamonFields t1_iwoan04 wrote
So oil companies can export more processed oil to foreign countries depleting our stocks and thereby raising our prices and raking in higher profits. Oh, the joy!
Crizbibble t1_iwpp0nr wrote
They will process Caribbean and South/Central American oil too. Some US oil.
myklob t1_iwonpy1 wrote
Our prices do not have anything to do with how much oil we store in the ground.
Miserly_Bastard t1_iwopy2q wrote
Not exactly. Reducing the cost of trade means that international buyers can afford to bid higher to more cheaply buy our oil instead of from somewhere else, like Saudi Arabia.
If that results in higher prices locally then that will induce more production, which results in a larger market share and a diminished influence of OPEC on global oil prices.
The equilibrium is a small bit of a price effect and a large effect on the quantity supplied through exports.
You'd think that the climate effect would be adverse, but if this takes pricing power away from OPEC and Russia...it could possibly net a gain. I guarantee you that Russia doesn't care if the planet gets warmer and that in both instances there are few qualms regarding greenhouse gas emissions from fossil fuel production. Claiming more market share from them could be an effective strategy.
Also, human rights, blah blah blah, and all that jazz.
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