Rather than have this post get lost in an endless thread, I'm starting a new one. I realize this story is over a year old, but nothing has changed: U.S. Gas Exports Force Drivers Into Bidding War With Mexico At Pump WASHINGTON -- Conservation, high prices, and hard times have led American motorists to dramatically decrease the amount of gasoline they buy. But how are they rewarded? With even higher prices, in part because American refiners have started exporting enormous amounts of American gasoline to Mexico and other countries. Exports of petroleum products -- mostly diesel and gasoline -- have increased sharply in the last two years, to about a billion barrels in 2011. For the first time, the U.S. is exporting considerably more finished products (though not crude) than it's importing. Around 3 million barrels of petroleum products are sent abroad each day. For some perspective, consider that all U.S. motorists combined use around 8 million barrels of gasoline a day. The top countries receiving the exports are Mexico, Canada, the Netherlands, Brazil, Singapore, Chile, Panama, Japan and China. Most of the ongoing increases in gas prices can be traced to geopolitical concerns and rampant financial speculation that have run up the cost of crude oil. And yet, if U.S. refiners limited themselves to domestic sales, there would be a glut on the market, and diesel and gasoline prices would inevitably drop. "The other countries are willing to pay more than we would," said James Hamilton, an economics professor and blogger at the University of California, San Diego. "And that's the price we pay, too, what they're willing to pay." Hamilton said that's how things work in a global market. "If you are a refiner and you've got gasoline to sell, you want to sell it where you can get the highest price," he said. "If Mexico is willing to pay a higher price to Americans, you're going to want to sell it to them instead of Americans." *snip*
Interesting that there are no replies to this thread. Do the usual haters of any and all regulation admit that these exports need to be regulated?
Wow. I haven't posted here in a while but it looks like the Rightwingers are still afraid to debate me. Oh, well.
If you think Mexico has it good, what with their surplus of American gasoline, go there and buy yours. And be happy. I recommend using less gasoline, and sticking to good old fashioned American produced and distributed fuels instead of giving your hard earned money to the Canadians or Nigerians.
Thanks! I appreciate any response to this thread - even if it's a nonsensical response. For anyone else who is confused, this thread is saying that the reason why our gas prices do not go down - and will never go down no matter how much we "Drill, Baby, Drill" is because gas in this country is no longer Supply And Demand. No matter how much supply we have, they will keep exporting it to other countries, keeping our gas prices high. Get it now?
Good thing I didn't do that then! Distilled products are a fungible commodity genius. Globally. What idiot would ever think that exporting gasoline to Mexico from a country with a surplus of refineries has anything to do with the global price of those products? You could have just said "gasoline is a fungible commodity and we are now exporting it to Mexico" and more people would have understood than your original implication which was pretty silly. The rest of us aren't the ones making a ridiculous link, you appear to have done that in the OP. No one responded because we already knew better.
Then you are agreeing with me that the "Drill, Baby, Drill" contingent is moronic to assume that more drilling in America will reduce the price of gas in America? You could have just said that.
I could have, but the bait built into the OP didn't mention that this was the answer it was looking for. It just said stupid things about prices and exports.
I can't vouch for your reading comprehension but I can point out that it clearly says: and: In plain English, and everything!
Now that I know the point of your baiting, I'll still take the bait! I'll defend drill baby drill. I think we should drill bunches. There. I said it. We should drill. Just don't expect that a natural consequence will be lower fuel prices.
The US is exporting gasoline into Mexico you say? I'd say that is an admission that nationalized energy (in this case Pemex) is a complete failure.
Pemex is the poster child for corruption of government-run enterprises. That an energy-rich nation like Mexico (not that long ago an exporter of energy) has to import refined product is a damning indictment of Pemex.
