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Joined: Jun 2007
Posts: 132
Campfire Member
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Campfire Member
Joined: Jun 2007
Posts: 132 |
Could someone with an economics background explain to me why we both import and export oil? I could be a little off on this but here goes. Because of higher labor, and operating cost in the USA it is cheaper to buy gas from the Middle East (which has much lower labor cost and overhead). We then sell the fuel that we produce to countries that have much lower usage (and can’t get the low prices from the Middle East) at a higher rate.
Last edited by Buck2; 12/12/18.
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Joined: Jan 2011
Posts: 2,278
Campfire Regular
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Campfire Regular
Joined: Jan 2011
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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.  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/Great to learn this. I got it from KIVA, the talk radio station, and I believe Eddie Aragon got it from either local sources, The Economist or The Wall Street Journal, as he recites those often. Norm
Norman Solberg
International lawyer, lately for 25 years in Japan, now working on trusts in the US, the 3rd greatest tax haven. NRA Life Member for over 50 years, NRA Endowment (2014), Patron (2016).
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Joined: Oct 2002
Posts: 10,002 Likes: 3
Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2002
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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. 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/Great to learn this. I got it from KIVA, the talk radio station, and I believe Eddie Aragon got it from either local sources, The Economist or The Wall Street Journal, as he recites those often. Norm I wasn't functioning fully when I read your post. I am looking at it again and I am reading that TX has 66 schools with 100% graduation rate. Is that correct? If so, it actually higher at a little over 290. https://www.usnews.com/high-schools...ee-high-school-graduation-rates-by-state
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Joined: Jan 2006
Posts: 4,699
Campfire Tracker
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Campfire Tracker
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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.. Totally ignorant statement... So much more paper traded by financial institutions, etc, than physical barrels, pricing set by paper trading not producers or refiners.
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Joined: Nov 2011
Posts: 31,017 Likes: 2
Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
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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.. Totally ignorant statement... So much more paper traded by financial institutions, etc, than physical barrels, pricing set by paper trading not producers or refiners. All that trading is called markets. Oil is a very large market. The bigger the market, the more difficult it is for traders to control the price. Where we do see attempts to manipulate the price is on the production side, specifically from the OPEC oil cartel.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Jan 2006
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Campfire Tracker
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Campfire Tracker
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Exactly, and even OPEC’s influence is less and less these days.
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Campfire Ranger
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Campfire Ranger
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Could someone with an economics background explain to me why we both import and export oil? 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. Alaskan oil to Japan is “traded in kind”. South American oil is mostly heavier crudes most of which goes to Gulf Coast refineries. It may find its way to Florida post refining. Some of it goes to The Virgin Islands for refining.
The degree of my privacy is no business of yours.
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