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Oil export ban’s end has yet to be a boon for railroads
The growth in Texas energy has already been developed for exporting Crude, the first vessel has already left Houston, Port of Corpus Christi has been shipping about 650K BPD outbound to LOOP, Philly, Texas Gulf refineries. The infrastructure is in place waiting for the market to shift. The only hope for Bakken is when Port Vancouver can move CBR to vessel for west coast refineries
I don’t think we are exporting oil to Canada or Mexico. The exported oil is going to Europe or japan. The basic effect of the measure is to RAISE the price of oil within the United States. When that happens the Alberta oil will start rolling southward in tank cars. I guess its basically good for the US economy in general since we are the world’s 2nd largest producer but there are more of us who are consumers than those of us who are producers.
$100 US for a barrel oil is good for the oil companies but not so good for the US consumer, which is what exporting oil is all about. Screw the US consumer any way, any how is how a Capitalist economy works and its even better without all those pesky regulations and rules to protect the US consumer.
Richard Stroot I believe summarizes how the market will work on US oil being exported. Simply put, the oil closest to a ship and means to move it to that ship via pipeline or the shortest possible trip by CBR will be exported. That is oil out of Texas that doesn’t go into refineries. In the meantime, I believe the wildcard for future US oil export will be Mexico allowing a competitive alternative to Pemex. If that happens, a lot more cheap oil will be accessed around the Gulf before anything comes down from northern plains for export.
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Also agree with Richard on Bakken. Pipeline infrastructure pipeline slowly being built out to East/South will help but a big plus would be for some relaxation on regulatory pressure from West Coast and or Vancouver developing a gateway. Right now, as a California resident that we block CBR to local Bay Area refineries but drive by that tanker offloading at Chevron Longwharf with oil from who knows where. Better West Coast CBR access encourages competition and opportunities at home while letting market decide where to get the oil, not California out of fear mongering at the local level.
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Now for my Trains editor complaint. The law was signed in literally 5 days ago before a major holiday. Please write a headline that is reasonable and doesn’t insult its readers.
This will keep the newer sources of oil in business by giving them New markets. The main place one might see changes is more Alaskan north slope oil being exported to Asia. (The pipeline ends at a port)
Just how is exporting our oil going to help the US from being dependent on imported oil?