How Biden’s cancelation of the Keystone XL Pipeline will turn out to be a fatal move for U.S. energy security and gas price stability
Oct 6, 2022 12:10:48 #
High gas prices in America have been caused by a mismatch between U.S. oil production and refining, bad policies or political hostility, and the Biden administration’s inaction.
Inflation in the United States has been running high since March when the yearly Consumer Price Index (CPI) reached 8.5 percent, the highest level since 1981. And a dramatic increase in energy prices has drawn special attention.
Between May and August, energy prices rose between 20 percent to 40 percent year-over-year.
President Joe Biden and the Democrats have proposed different solutions to the high energy prices, including a windfall tax for oil companies, urging gas stations to cut prices, imposing an oil export ban, and allowing countries to buy Russian oil with a price cap.
However, most of those proposed measures either will not work or won’t lower the gas prices in America permanently.
As inflation soared, Democrats have been calling for the White House to impose an oil export ban. But this will not cut gas prices and may bring disastrous results.
U.S. crude oil exports have been increasing since 2011, and decreasing oil imports during the same time period caused net crude oil imports to decrease.
However, most of the oil in the recent export surge is light sweet oil which is also known as “shale oil.” However, the refineries in the United States were designed to refine heavy crude oil, aka “conventional oil” and don’t have the capacity to process the exported shale oil.
According to an analysis by the Dallas Federal Reserve, the United States exported on average 3 million barrels of mainly shale oil per day at the end of November 2021 and imported more than 6 million barrels of mostly conventional oils from Canada and other foreign suppliers each day.
Even if the U.S. bans oil exports, which are mostly shale oil, it’s impossible for refineries to update their facilities to refine shale oil after decades of political hostility against the oil industry. Updating the facilities means the refineries need to invest billions of dollars and get extra emission-related permits. And that’s an impossible task under the Biden administration. They’ve made the f****l f**l business in North America the enemy of the people.
Why should anybody spend a billion, two billion, three billion, if you’re not sure of the policy of the country you’re doing business in the next five, ten years? Because you have to get a return on investment. So, it’s the way the United States succeeds, the way companies succeed, if you have confidence in Washington, if they have confidence in the administration that if they spend a billion dollars or two billion dollars, that there’s going to be return of investment.
So, an oil export ban will have disastrous results because what would happen is we would end up with endless amounts of shale oil in the Gulf Coast. The shale oil couldn’t efficiently be used by the refineries so in order to make those refineries take that kind of oil, the oil companies would have to invest huge amounts of money which would drive up the price of the gasoline and the diesel on the jet fuel.
The two biggest oil companies in the United States, Exxon Mobil and Chevron, already voiced objections to the proposed oil export ban.
The risk in an action like that has unintended consequences. And, in fact, the U.S. is both an exporter and importer of products. An export ban runs the risk of taking supplies that are needed in other parts of [the] world and reducing those, which can drive oil prices up, which then can affect the price of imports into this country.
So, the only ones who would temporarily benefit from an oil export ban are those refiners who specialize in refining shale oil, according to the Dallas Federal Reserve.
However, “as the price of domestically produced crude oil declines and storage fills, it would not be long before some domestic oil producers become unprofitable and cease operations,” reads the analysis.
So, what does this have to do with the Keystone XL Pipeline? On, his first day in the White House, President Joe Biden signed an executive order to revoke President Donald Trump’s permit for the Keystone XL Pipeline.
It turned out to be one of the most fatal moves for U.S. energy security and gas price stability because Canada is one of the most important sources of the conventional crude oil that most U.S. refineries can handle and the Keystone XL pipeline is what is needed to t***sport the Canadian crude oil.
The Keystone XL pipeline was going to supply about 800,000 barrels a day of Canadian oil and about 100,000 barrels a day of North Dakota oil, which is the right oil [heavy oil].
So, the logical thing to do, if the Biden administration is intending to lower gas prices, is to increase the oil supplies from Canada and Alaska that work in U.S. refineries with the Alaska pipeline being key to increasing oil supplies quickly—as it can t***sport 2.1 million barrels a day—but is currently only moving 500,000 barrels a day. IT’S THREE-QUARTERS EMPTY! So—to lower the gas prices in America—the key is to “open up North America.”
If we open up North America for more crude oil, we’re capable of producing 20 to 21 million barrels a day with Canada. Why are we begging Saudi Arabia, begging Russia, begging Iran, begging Venezuela for another 100,000 barrels a day when we have it here in North America? Why Washington is doing that.
Another botched move against North America’s oil supply by the Biden administration is banning new oil and natural gas leasing on federal lands, which also produce a needed type of crude oil for the domestic market—The ban was lifted by a U.S. appeals court in August.
One possible compromise could be the Biden administration increasing oil supplies from Canada and Alaska and designating the extra capacity for domestic use only.
From oil, you make fertilizer which affects food; from oil, diesel fuel that runs our factories, diesel fuel that runs our trucks that deliver to the supermarkets. That’s what is creating the rising cost, if the price of crude oil goes down because you [Biden] open up, guess what? Within 90 days, everything else will come down.
So, what is Biden’s intent since the worst situation hasn’t yet come for U.S. consumers, as energy inventories run low and the Organization of the Petroleum Exporting Countries (OPEC) has cut production? Biden can fix high gas prices facing American consumers, but only if he’s willing to do so.
But I doubt Biden really has the intent to lower gas prices.
If a person is dispassionately and objectively looking at this issue and saying ‘we would like to get prices down for Americans,’ we would go and look at where the problems are and try to solve them. That’s not what he’s doing at all. In fact, it’s just the opposite. He’s causing refineries to close. He’s making it harder for refineries to operate. We’re offshoring our refining capacity to other places, both India and China have been building refineries like mad.
The intention of the Biden administration is to promote an “incredible t***sition” from f****l f**l to electric vehicles, as Biden suggested in May.
“When it comes to the gas prices, we’re going through an incredible t***sition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on f****l f**ls when this is over,” Biden said.
The idea is “crazy.” You have to laugh about it because it’s crazy. You know, we don’t have the minerals to make the batteries.
I am VERY worried that Biden’s agenda is bringing America down a dangerous path. I welcome new technology. But maybe you do it over 30 years, over 40 years. And make sure it works before you put everything else out of business … and then we find out it doesn’t work.
Inflation in the United States has been running high since March when the yearly Consumer Price Index (CPI) reached 8.5 percent, the highest level since 1981. And a dramatic increase in energy prices has drawn special attention.
Between May and August, energy prices rose between 20 percent to 40 percent year-over-year.
President Joe Biden and the Democrats have proposed different solutions to the high energy prices, including a windfall tax for oil companies, urging gas stations to cut prices, imposing an oil export ban, and allowing countries to buy Russian oil with a price cap.
However, most of those proposed measures either will not work or won’t lower the gas prices in America permanently.
As inflation soared, Democrats have been calling for the White House to impose an oil export ban. But this will not cut gas prices and may bring disastrous results.
U.S. crude oil exports have been increasing since 2011, and decreasing oil imports during the same time period caused net crude oil imports to decrease.
However, most of the oil in the recent export surge is light sweet oil which is also known as “shale oil.” However, the refineries in the United States were designed to refine heavy crude oil, aka “conventional oil” and don’t have the capacity to process the exported shale oil.
According to an analysis by the Dallas Federal Reserve, the United States exported on average 3 million barrels of mainly shale oil per day at the end of November 2021 and imported more than 6 million barrels of mostly conventional oils from Canada and other foreign suppliers each day.
Even if the U.S. bans oil exports, which are mostly shale oil, it’s impossible for refineries to update their facilities to refine shale oil after decades of political hostility against the oil industry. Updating the facilities means the refineries need to invest billions of dollars and get extra emission-related permits. And that’s an impossible task under the Biden administration. They’ve made the f****l f**l business in North America the enemy of the people.
Why should anybody spend a billion, two billion, three billion, if you’re not sure of the policy of the country you’re doing business in the next five, ten years? Because you have to get a return on investment. So, it’s the way the United States succeeds, the way companies succeed, if you have confidence in Washington, if they have confidence in the administration that if they spend a billion dollars or two billion dollars, that there’s going to be return of investment.
So, an oil export ban will have disastrous results because what would happen is we would end up with endless amounts of shale oil in the Gulf Coast. The shale oil couldn’t efficiently be used by the refineries so in order to make those refineries take that kind of oil, the oil companies would have to invest huge amounts of money which would drive up the price of the gasoline and the diesel on the jet fuel.
The two biggest oil companies in the United States, Exxon Mobil and Chevron, already voiced objections to the proposed oil export ban.
The risk in an action like that has unintended consequences. And, in fact, the U.S. is both an exporter and importer of products. An export ban runs the risk of taking supplies that are needed in other parts of [the] world and reducing those, which can drive oil prices up, which then can affect the price of imports into this country.
So, the only ones who would temporarily benefit from an oil export ban are those refiners who specialize in refining shale oil, according to the Dallas Federal Reserve.
However, “as the price of domestically produced crude oil declines and storage fills, it would not be long before some domestic oil producers become unprofitable and cease operations,” reads the analysis.
So, what does this have to do with the Keystone XL Pipeline? On, his first day in the White House, President Joe Biden signed an executive order to revoke President Donald Trump’s permit for the Keystone XL Pipeline.
It turned out to be one of the most fatal moves for U.S. energy security and gas price stability because Canada is one of the most important sources of the conventional crude oil that most U.S. refineries can handle and the Keystone XL pipeline is what is needed to t***sport the Canadian crude oil.
The Keystone XL pipeline was going to supply about 800,000 barrels a day of Canadian oil and about 100,000 barrels a day of North Dakota oil, which is the right oil [heavy oil].
So, the logical thing to do, if the Biden administration is intending to lower gas prices, is to increase the oil supplies from Canada and Alaska that work in U.S. refineries with the Alaska pipeline being key to increasing oil supplies quickly—as it can t***sport 2.1 million barrels a day—but is currently only moving 500,000 barrels a day. IT’S THREE-QUARTERS EMPTY! So—to lower the gas prices in America—the key is to “open up North America.”
If we open up North America for more crude oil, we’re capable of producing 20 to 21 million barrels a day with Canada. Why are we begging Saudi Arabia, begging Russia, begging Iran, begging Venezuela for another 100,000 barrels a day when we have it here in North America? Why Washington is doing that.
Another botched move against North America’s oil supply by the Biden administration is banning new oil and natural gas leasing on federal lands, which also produce a needed type of crude oil for the domestic market—The ban was lifted by a U.S. appeals court in August.
One possible compromise could be the Biden administration increasing oil supplies from Canada and Alaska and designating the extra capacity for domestic use only.
From oil, you make fertilizer which affects food; from oil, diesel fuel that runs our factories, diesel fuel that runs our trucks that deliver to the supermarkets. That’s what is creating the rising cost, if the price of crude oil goes down because you [Biden] open up, guess what? Within 90 days, everything else will come down.
So, what is Biden’s intent since the worst situation hasn’t yet come for U.S. consumers, as energy inventories run low and the Organization of the Petroleum Exporting Countries (OPEC) has cut production? Biden can fix high gas prices facing American consumers, but only if he’s willing to do so.
But I doubt Biden really has the intent to lower gas prices.
If a person is dispassionately and objectively looking at this issue and saying ‘we would like to get prices down for Americans,’ we would go and look at where the problems are and try to solve them. That’s not what he’s doing at all. In fact, it’s just the opposite. He’s causing refineries to close. He’s making it harder for refineries to operate. We’re offshoring our refining capacity to other places, both India and China have been building refineries like mad.
The intention of the Biden administration is to promote an “incredible t***sition” from f****l f**l to electric vehicles, as Biden suggested in May.
“When it comes to the gas prices, we’re going through an incredible t***sition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on f****l f**ls when this is over,” Biden said.
The idea is “crazy.” You have to laugh about it because it’s crazy. You know, we don’t have the minerals to make the batteries.
I am VERY worried that Biden’s agenda is bringing America down a dangerous path. I welcome new technology. But maybe you do it over 30 years, over 40 years. And make sure it works before you put everything else out of business … and then we find out it doesn’t work.
Oct 6, 2022 12:21:12 #
Forkbassman
Loc: Missouri
Biden & his admin & millions that follow him DON’T CARE about what is good for America. Why? It is ALL ABOUT POWER! They are in control & to hell with all who oppose them. Hopefully, many will wake up next month & V**E THEM ALL OUT but we have the sick Soros & his billions continuing to fund all the radicals all over the country. Why? He wants to destroy our country; he h**es capitalism, Christianity & all that this country was founded on.
Oct 6, 2022 12:44:30 #
Parky60 wrote:
High gas prices in America have been caused by a m... (show quote)
Delay , delay , delay. , who did you learn that from????
We can get the same d********g high sulfur oil from Venezuela at less than
half the cost .
We cannot burn that high sulfur oil here.
It is strictly for export. Canada has also outlawed burning it.
Why does the right keep harping on this.
There is one refinery that is capable of distilling this d********g crap , but , why bother? We get nothing for it except the mess to clean up and the pollution it leaves behind. It is not figured as any sort of oil reserve , it’s barely even oil , only benefiting
The Kochs Carbon Company.
No one else.
Except maybe the Chinese we sell it to.
And the high gas prices are caused by unregulated capitalism and Greed.
Oil is less than $100./bbl.
So why the high prices.
Fewer companies capturing larger and larger portions of the oils industry are a sign oil is waning.
Keeping prices up hoping it will last.
Oct 6, 2022 12:50:24 #
Parky60 wrote:
High gas prices in America have been caused by a m... (show quote)
The Keystone pipeline was about exporting oil, which makes no difference with so called energy independence.
Oct 6, 2022 12:55:32 #
Forkbassman wrote:
Biden & his admin & millions that follow him DON’T CARE about what is good for America. Why? It is ALL ABOUT POWER! They are in control & to hell with all who oppose them. Hopefully, many will wake up next month & V**E THEM ALL OUT but we have the sick Soros & his billions continuing to fund all the radicals all over the country. Why? He wants to destroy our country; he h**es capitalism, Christianity & all that this country was founded on.
Biden knows that getting rid of the maga cult people would be a good thing for America.
The are Not republicans . They do not reflect the American Ideals of this country.
Republicans at one time were Patriots .
Todays teapublitarians are not Patriots .
They are more like whiney little b***hes who cry every time they don’t get everything their way.
I say it’s time for Benedict Donald to call in his Space Force and start loading them all up. For their special journey.
Oct 6, 2022 12:57:54 #
JFlorio
Loc: Seminole Florida
woodguru wrote:
The Keystone pipeline was about exporting oil, which makes no difference with so called energy independence.
Wrong. Again. That oil would be put on the world market and sold. More supply, lower prices. Energy independence is based on the amount we can produce. We can produce more than we use. Take a hike dumba**.
Oct 6, 2022 12:58:37 #
JFlorio
Loc: Seminole Florida
Milosia2 wrote:
Biden knows that getting rid of the maga cult people would be a good thing for America.
The are Not republicans . They do not reflect the American Ideals of this country.
Republicans at one time were Patriots .
Todays teapublitarians are not Patriots .
They are more like whiney little b***hes who cry every time they don’t get everything their way.
The are Not republicans . They do not reflect the American Ideals of this country.
Republicans at one time were Patriots .
Todays teapublitarians are not Patriots .
They are more like whiney little b***hes who cry every time they don’t get everything their way.
Speaking of b***h's; how you doing?
Oct 6, 2022 13:00:04 #
JFlorio
Loc: Seminole Florida
Milosia2 wrote:
Delay , delay , delay. , who did you learn that fr... (show quote)
Wrong once again. Congrats! In the race for most ignorant you have put a nose in front of pegw. Woodguru is still lapping up the rear in third place.
Oct 6, 2022 13:07:24 #
JFlorio wrote:
Wrong. Again. That oil would be put on the world market and sold. More supply, lower prices. Energy independence is based on the amount we can produce. We can produce more than we use. Take a hike dumba**.
World Market.
That’s funny right there.
This world market you speak of only Has 4 likely members.
It’s already below $100/ bbl.
You seem to be stuck in the old memes
Of how things usta be.
Today there’s no need for markets !
Wh**ever price they want it to be be , that’s the price They choose.
Markets ,
Too Funny !!!!
Unregulated capitalism has taken over the markets .
Markets are now antiques that were bad for business. They could cost you money.
Today , no fear of ever losing a penny in the oil “Market” .
The fear of losing has been taken care of.
Proving of course , how little you actually know.
Oct 6, 2022 13:12:48 #
JFlorio
Loc: Seminole Florida
Milosia2 wrote:
World Market. br That’s funny right there. br This... (show quote)
I know more about the markets and economy than you ever will. Hell I knew more at age 12 than you do. You are one of the dumbest people I have ever heard from.
Oct 6, 2022 13:19:36 #
WinkyTink
Loc: Hill Country, TX
Milosia2 wrote:
World Market. br That’s funny right there. br This... (show quote)
Oct 6, 2022 13:22:36 #
RandyBrian
Loc: Texas
JFlorio wrote:
I know more about the markets and economy than you ever will. Hell I knew more at age 12 than you do. You are one of the dumbest people I have ever heard from.
Gee! Who to listen to? Jim or Milosia? What a quandary.
Well, since I am on one of my 'not an i***t' days, I will have to go with Jim.
In fact, on the worst, most i***tic day of my life, I would still go with Jim.
Oct 6, 2022 14:03:03 #
JFlorio
Loc: Seminole Florida
RandyBrian wrote:
Gee! Who to listen to? Jim or Milosia? What a quandary.
Well, since I am on one of my 'not an i***t' days, I will have to go with Jim.
In fact, on the worst, most i***tic day of my life, I would still go with Jim.
Well, since I am on one of my 'not an i***t' days, I will have to go with Jim.
In fact, on the worst, most i***tic day of my life, I would still go with Jim.
LOL! Thanks. Even though Milosia is a pretty low bar.
Oct 6, 2022 14:25:33 #
RandyBrian
Loc: Texas
JFlorio wrote:
LOL! Thanks. Even though Milosia is a pretty low bar.
Just being t***hful. If Milosia said it is raining outside, I would ask pretty much anyone else before grabbing an umbrella.
Oct 6, 2022 14:50:13 #
Milosia2 wrote:
Delay , delay , delay. , who did you learn that fr... (show quote)
Why don't you read the article then get back to me with an intelligent comment dumba** but I find that HIGHLY unlikely!
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