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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: BubbaFred who wrote (29728)	3/23/2003 12:36:48 PM
From: Art Bechhoefer	Respond to of 36161

I don't beleive a surcharge is practical. First of all, some Iraqi oil goes by pipeline to Jordan and Turkey (the pipeline is there, just not used at the moment). The U.S. could presumably put a surcharge on oil from Iraq or the Persian Gulf imported into the U.S., but what if the oil from there first goes to, say, Nigeria, and from Nigeria is again "exported" to the U.S.? The U.S. can't impose a tax on foreign oil not going to the U.S., and who's to tell where it's going? Furthermore, if the surcharge is deemed a tariff, then it runs into problems with the World Trade Organization, which has already ruled against the U.S. imposition of tariffs on certain kinds of foreign steel. In short, this doesn't produce the hoped for results. Art