[westexas]

U.S. crude exports could counter Russia in 90 days -Hess CEO
http://www.reuters.com/article/2014/04/10/usa-crude-exports-hess-idUSL2N0N225T20140410

(Reuters) – The United States could give Europe and Ukraine relief from energy dependence on Russia within months if it overturned the 40-year ban on most U.S. crude oil exports, the head of energy company Hess Corp. said on Thursday.

“There’s something we can do today to help our allies now, and that’s give the green light to crude exports,” Chief Executive Officer John Hess said at the Center for Strategic and International Studies, a Washington-based think tank.

He estimated that Europe and Ukraine could get relief from volatile oil prices in 90 days if the ban was overturned.

Concern about Europe’s dependence on Russian energy has risen after President Vladimir Putin’s government annexed the Crimean peninsula.

Europe gets 30 percent of its crude oil supply from Russia, and has been hesitant to impose sanctions on Moscow for the invasion of Ukraine. In addition, Russia has hiked prices for natural gas it sells to Ukraine.

The most recent four week running average data from the EIA showed that the US was dependent on net imports of crude oil for 47% of the crude oil processed in US refineries.

We clearly have a crisis situation regarding the math skills of many US oil and gas executives, and we need a nationwide remedial math program to teach them how to do simple arithmetic.

[rollin]

Actually, the only math they know is how to calculate profit. Apparently there is profit in export and probably profit in depleting American reserves. The math of supply and demand, they understand that. The fact that the "oil" or oil products will come from Canada or elsewhere is not a problem, as long as they make money along the way.

[rockdoc123]

We clearly have a crisis situation regarding the math skills of many US oil and gas executives, and we need a nationwide remedial math program to teach them how to do simple arithmetic.

actually their math is pretty good....sell oil overseas at Brent and possibly Brent + or sell in North America at WTI (discounted against Brent somewhere around $10) or at prices lower than WTI due to infrastructure issues.

[Plantagenet]

Its not just oil and gas execs who need remedial math. Liberal oligarch George Soros and even some folks in the White House think they can flood the oil market by tapping the strategic petroleum reserve. They propose draining the SPR to punish Russia for invading Ukraine.

george-soros-pushes-obama-to-release-strategic-oil-reserves-to-ruin-russia

[westexas]

Just a little puzzled about the following, since we currently net import 47% of the crude oil processed daily in US refineries:

“There’s something we can do today to help our allies now, and that’s give the green light to crude exports,”

I've suggested that the US boost our crude oil imports from Russia by 2 mbpd, so that we could then export 2 mbpd of crude oil to Western Europe. Problem solved!

[Plantagenet]

I've suggested that the US boost our crude oil imports from Russia by 2 mbpd, so that we could then export 2 mbpd of crude oil to Western Europe. Problem solved!

I like it.

But why restrict this clever plan just to the US? Why not have Germany sell all the oil it imports to France, while France sells all the oil it imports to Germany. Then other EU countries could join in the fun. Eventually every country will be an oil exporting country and we could all join OPEC.


If every country would just export their imported oil we could all join OPEC and be oil sheiks

[Subjectivist]

I've suggested that the US boost our crude oil imports from Russia by 2 mbpd, so that we could then export 2 mbpd of crude oil to Western Europe. Problem solved!

I like it.

But why restrict this clever plan just to the US? Why not have Germany sell all the oil it imports to France, while France sells all the oil it imports to Germany. Then other EU countries could join in the fun. Eventually every country will be an oil exporting country and we could all join OPEC.


If every country would just export their imported oil we could all join OPEC and be oil sheiks

If I recall correctly the P in OPEC stands for Producing so you will need a new acronym.

[Plantagenet]

If I recall correctly the P in OPEC stands for Producing so you will need a new acronym.

Nope. I'm sure your memory is excellent but its let you down this time.

The P in OPEC stands for PETROLEUM.

Its the Organization of Petroleum Exporting Countries.

[Pops]

Hess getting out of the retail end of the oil biz, it owns the biggest gas station chain on the east coast but is selling it off.

As all good businessmen know if it's good for business it's good for 'merica and since 'mericans can no longer afford to buy their products it's only right that they should be allowed to sell to those who can.

http://www.fool.com/investing/general/2 ... -unit.aspx

[dolanbaker]

If I recall correctly the P in OPEC stands for Producing so you will need a new acronym.

Organisation of Fuel Unloading Countries!

is as good as any other.

[Ron Patterson]

Rocdoc123 wrote:

actually their math is pretty good....sell oil overseas at Brent and possibly Brent + or sell in North America at WTI (discounted against Brent somewhere around $10) or at prices lower than WTI due to infrastructure issues.

The spread right now is $3.59. That is well below shipping costs. However that is not the point. The US is importing oil and paying Brent prices, depending on the grade. All oil at the import, or potential export terminals, sells at the same price for any particular grade. It doesn't matter where it comes from.

The Midwest bottleneck is responsible for the difference between WTI and Brent. At the coast all oil of similar grade is all the same price.

[Newfie]

Just send them a copy of Bart let's video.

http://www.youtube.com/watch?v=e_VpyoAXpA8

[westexas]

Something interesting that Jim Hansen pointed out to me. It's certainly a good thing that we are not one of those countries that have become increasingly dependent on Russian imports of petroleum (sarcasm alert).

http://www.eia.gov/dnav/pet/hist/LeafHa ... -NRS_2&f=A

Although the recent monthly data do show a decline.