Home Forums Hunting & Shooting Hunter's Campfire Oil exports exceed oil imports, just as Trump promised.

Zero said we cant drill ourway out. Trump said we could.

https://www.reuters.com/article/us-...-more-oil-than-it-ships-in-idUSKBN1O51X7

Could someone with an economics background explain to me why we both import and export oil?

AND why are we in the Northeast paying more for home heating oil than we are paying for gas for our cars????????

We have high grade lightweight crude in excess.

You ask awkward questions Grasshopper.

You are because the suppliers can get it out of you, and you have commies running that part of the country. You should heat with geo-thermal...no-wait...solar...no wait...windmills...nahhh...sea wave action...uhhh...

Hell, just rub your hands together and quit griping.

Natural Gas heat down here. Is heating oil like diesel?

Better yet just move.

Cause you live in liberal heaven and all the welfarites up their receive home heating oil vouchers .
So if ya work and pay taxes you pay for their liberal socialist Democrat manna from unca sugar free chyt.....

Plus alot of older homes up their are blown heat or water pipe radiator heated all run on heating oil burners.

And heating oil ain't cheap to solely refine like the mass production for gasoline.
Same way diesel can be compared to gas when diesel was cheaper than gas back in the day.

Convert to electric heat or natural gas and your bill might go down
Some of the utility companies might have programs that sponsor it.
Might get a tax break outta it too if they still exist.

Raised up in Maine
Went back to Bangor from 98 -01 as a army recruiter
DOD gave us all 650 extra a month in the new England battalion
From oct 1 to April 1 each year for the sole purpose of heating oil cost.

It was ridculous.
I think I was paying 2.75 a gallon for it back then
And we could purchase a set contract rate if we ponied up
50% of estimated cost for heating season.
Something DOD had set up for all the recruiters all the branches had in the frozen wastelands across north America
Rates varied by region of the country also.
This is what most of us did.
Fill out the paper work.
Lock in a rate.
Easy to burn through 250 - 300 gallons a month at times.

Yes- heating oil is diesel, basically. I think dye and highway taxes on road use product is the only difference. Heating oil is about a third cheaper, or it used to be.

Don't ask....

It’s the exact same stuff!

. The crude we produce varies greatly in quality from a lot of the imported crude, and a lot of US refineries are not designed to run light sweet crude. Crudes vary in price based on qualities. Also, the are geographical dislocations.


. Because heating oil is now the same as ULSD, and because ULSD inventories are near 5yr lows as we approach “heating oil season”, vs gasoline inventories are near 5yr highs. Bad news is it’s gonna be worse next year and the year after... IMO (International Maritime Organization) is requiring shippers to use lower sulfur fuels starting Jan 1, 2020, which will put further strain on currently low ULSD inventories. Gasoline demand is down, so ineventory is up and price is down (currently abt the same price as the oil that has to be processed to produce it! Remember there is approx 40cpg tax on ULSD and gasoline, but this doesn’t apply to heating oil. Wholesale ULSD is currently ~40cpg higher than wholesale gasoline, thus heating oil price at terminal = gasoline price. Then additional logistics and less scale of heating oil market requires higher premiums, which means your heating oil is above price of gasoline.

Contrary to popular (& ignorant) belief, refiners are NOT making a lot of $... $60/bbl for oil vs $69/bbl avg for gasoline and diesel doesn’t leave much margin to cover costs, some refineries are negative cash flow are these margins. Midwest refineries currently being the most profitable due to dislocation of WTI, as well as cheap Canadian crude due to their logistics constraints moving it all.

The most valuable and strategic national resource we have and we are burning up our supply instead of everyone else's. The smart game would be to keep ours in the ground and use up everyone else's first.

Having the last tank of gas is like having the last bullet in a gunfight.

Probably a transportation issue. We import lots of oil from Canada. It’s probably cheaper to import that oil than get it there from USA sources. And that may apply to other parts of the country.

I got a good quality Harmon pellet stove and cut my heating costs in half, and we love the flickering fire...soothing.

I look forward to seeing how the US plays the supply/demand cost as we roll. I am thinking the Saudi's will have to cave.

Lots of good information here. Thanks, guys.

Meanwhile, we are hearing that the $1.2 billion surplus the New Mexico state government achieved under the past GOP administration, all coming from the oil & gas industry, is about to a squandered by the new all-Democrat one on salaries and other state programs, including especially education. Folks, NM is at the bottom of the pack in graduating high school students and paying the teachers more isn't going to change that one iota.

NM does not have a single HS with a 100% graduation rate. Texas, next door, has 66.

It's the product of a low income economy with revenues highly skewed towards resources. No high tech industry or even Amazon is going to move here, as they simply cannot get sufficient numbers of capable workers when the average attains only a sixth grade education. That is not the fault of the teachers, It's a larger societal problem.

Otherwise, t's a great place to live if you can avoid the crime factor.

There is nothing about the oil industry that has ever made sense to me. They can try to paint it anyway they want to, but the bottom line is that they know we have to have it, and the oil companies are in a position to dictate the rules. With all things being said, I'm glad we are drilling here, and not sending all our money to the Muzzies.

Are you talking about the Texas schools near the NM border? Because the statewide rate is approximately 89%.

https://www.politifact.com/texas/st...-says-texas-enjoying-record-high-school/

Logistics.

The economic term for it is "Natural Markets".

As an example, much of the oil from Alaska ends up in Japan, since it's such a nice easy tanker trip from the end of the Alaska Pipeline.

Oil from the South America ends up in Florida.