Tag Archives: oil exports

national news, political news

Meanwhile … a budget deal comes forth

budget

While the Republican presidential horde was cackling Tuesday night in Las Vegas about how much better they could govern the country than the man who’s been doing it for nearly eight years, GOP and Democratic congressional leaders were hard at work.

They produced a budget to fund the government well into 2016.

Republicans got a lot of what they wanted; Democrats got some of what they wanted. Republicans control Congress, so that’s to be expected.

I believe that’s what we call “legislating.”

House Speaker Paul Ryan, R-Wis., announced a tentative deal that spends $1.1 trillion through most of the upcoming election year.

It’s not a perfect deal. Then again, when you have two parties grappling for their preferences, one cannot expect perfection. One gets what one can get. You seek to make the best of it and then you line up and support a deal that does what it’s designed to do: run the massive federal government that is supposed to serve the people who pay for it — that you be you and me.

One of the more intriguing elements of the deal is that it ends the nation’s ban on exporting oil. Fascinating, yes? We’re now the world’s No. 1 producer of petroleum, so we have a surplus of what we could call “Texas Tea” to share with our trading partners and allies.

We’re not out of the woods just yet. The government is scheduled to shut down tonight. Leaders from the both parties have to engineer yet another stop-gap measure that would keep the government functioning through Dec. 22.

In the meantime, they all can work out the details of getting this bigger deal done. They need to wrap it up before they all head out of town for Christmas.

Get busy. Go home. Spend some time with your loved ones.

Then get back to work. We pay you folks to govern.

 

business news, national news, State news

Export oil, deplete supply, price goes up

Pressure reportedly is mounting on Capitol Hill to lift a four-decade ban on exporting U.S. crude oil.

This notion gives me pause. I’m not totally against it. It surely, though, does raise a fundamental economic question: If supply-and-demand policy regulates the price consumers pay for a product, would exporting oil overseas reduce the supply here at home and, thus, mean we pay more for what we purchase?

http://thehill.com/policy/energy-environment/217620-momentum-builds-to-allow-us-oil-exports

I watched the price of gasoline drop twice Saturday while I was working. The price of regular unleaded gasoline is now around $3.07 per gallon in Amarillo.

Then this morning I read in the Wall Street Journal that prices might be coming down even more. And this comes as the pressure builds to allow U.S. exports of oil. Why? Because we have so much of it now being produced here at home, thanks to the enormous shale oil reserves being developed in places such as North Dakota and Montana — not to mention the production that’s occurring in West Texas and Oklahoma.

Some Republicans want to lift the ban enacted in the 1970s when oil was relatively scarce. We had been through those oil embargoes slapped on us by rogue Middle East nations. The price of fossil fuel products has gone nowhere but up ever since … until now.

The price is coming down, thanks to a lot of factors: better motor vehicle fuel efficiency; increased development of alternative energy sources, which means less reliance on fossil fuels to generate electricity.

All of this has contributed to a glut of oil supply in the United States.

Do we want to draw down that supply when Americans might start to see some serious relief as they fill up their motor vehicles with fuel?

Supply goes up, prices go down. Isn’t that what we want? I need to think some more about this idea.