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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (181322)	11/13/2013 1:21:32 AM
From: JimisJim	Respond to of 206151

Ed: politics and public perception... eom

To: Ed Ajootian who wrote (181322)	11/13/2013 6:50:16 AM
From: Bearcatbob	Respond to of 206151

Refined products is big plus for foreign exchange/balance of payments goodness. Additionally - a merchant refinery business is a source of good jobs. IMO it is almost impossible to not allow product exports as there is an imbalance in produced products and domestic demand - eg - we make more gasoline than we need to produce the diesel we do need (my understanding). I tried yesterday to find some high level data as to how much imported oil is simply refined with the products exported and failed. Bob

To: Ed Ajootian who wrote (181322)	11/13/2013 9:39:11 AM
From: Dennis Roth	4 Recommendations Recommended By 16bit Bearcatbob dsindakota Truedarkblue Read Replies (3) \| Respond to of 206151

>> it would be more logical if they restricted the export of oil products vs. crude << There is a national security angle here in that allowing the export of refined products keeps national refining capacity higher than it otherwise would be if we restricted it to supplying only domestic civilian demand and peace time military needs. In an emergency situation increased military refined products demand would have to come out of the civilian sector to the detriment of the civilian economy if we didn't have spare national refining capacity. Extra refining capacity can't be quickly built when floods and storms knocks some of it out or war increases demand. Depending on the goodwill of Venezuela and/or Middle Eastern refiners to send us extra products in a military emergency is nuts. There are plenty of energy know nothings in Congress that object to the export of gasoline since they believe that by bottling up domestic refinery gasoline output in this country would result in lower prices at the pump (at least until enough refineries were shut down and scrapped to put supply and demand back into balance.) Gasoline pump prices prior to the next election are the only aspect of National Energy Policy they care about. Also, as others have pointed out, there is more tax revenue collected and jobs supported by exporting valued added refined products than the crude they are made from. It is not for nothing that the Saudi's have recently opened big new refinery and petrochemical complexes because they know there is more money to be made in exporting the refined products over exporting the crude to others so that others can capture the profits in transforming the crude into something useful. To some, it makes little sense to export crude and import it back as value added refined products and petrochemicals and depend the continued on the goodwill of foreign nations with their own agendas. One the other hand there are the Free Trade and global comparative advantage efficiency arguments but those don't move Congress like National Security and Jobs.