Dick Cheney warns against Iran deal

[bocabull]

dear Lord....

Extremely ignorant of this industry you are lol...extremely

Says the guy who does't even know we produce 9 million barrels a day and consume 19 million barrels a day and is calling to export. lol lol That is truly kindergarten level economics.

BTW here's the price history of WTI. The Iraq boondoggle caused prices to explode, they are heading back to normal which is great for the world economy and the US economy.

 

[SoonerBounce13]

http://cnsnews.com/news/article/bar...imported-oil-will-make-just-21-us-consumption

http://www.eia.gov/tools/faqs/faq.cfm?id=32&t=6

In 2014, about 27% of the petroleum consumed by the United States was imported from foreign countries,1 the lowest level since 1985.

 

[bocabull]

The US produces ~ 9 million barrels of crude oil per day.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m

The US consumes ~ 19-20 million barrels of crude oil per day.

Even your own link says the US imported 44% of crude oil to refineries. "In 2014, about 44% of the crude oil processed in U.S. refineries was imported." Other petroleum products are irrelevant when it comes to determining whether to allow our crude to be exported.

Bottom line, we don't produce what we consume. Exporting is a non starter. All it would do is reduce supply and increase price.

And to your original point this issue has absolutely nothing to do with the Iran deal.

 

[SoonerBounce13]

The US produces ~ 9 million barrels of crude oil per day.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m

The US consumes ~ 19-20 million barrels of crude oil per day.

Even your own link says the US imported 44% of crude oil to refineries. "In 2014, about 44% of the crude oil processed in U.S. refineries was imported." Other petroleum products are irrelevant when it comes to determining whether to allow our crude to be exported.

Bottom line, we don't produce what we consume. Exporting is a non starter. All it would do is reduce supply and increase price.

And to your original point this issue has absolutely nothing to do with the Iran deal.

like usual, you twist facts to try and make your point. FACT, less than 30% of petroleum consumption is imported.

Do you not find it odd that every other country in the world can export crude except the us? Why do you think that is?

I find it extremely odd that we will let Iran export but not ourselves.

FACT, the US cannot have energy independence at 30 dollar oil. It will not happen. Supply will quickly deminish b/c the crude needed to sustain ourselves cannot be extracted at those prices.

http://energypolicy.columbia.edu/si...ing the US Oil Export Debate_January 2015.pdf

Total petroleum production is over 12 million b/d,
making the US the largest liquids supplier in the world.
Rising production and declining petroleum consumption
has reduced US import dependence from 60 percent to
26 percent over the past eight years.

In short, we find:
• The original rationale for crude export restrictions
no longer applies. Today’s oil market looks very
different than in the 1970s when current crude oil
export restrictions were first put in place. At that
time, the US had adopted domestic price controls
to combat inflation and crude export restrictions
were necessary to make those price controls effective.
While price controls have long since fallen
away, crude export restrictions remain.

If recent production growth rates continue, a
shortage of US light crude refining capacity will
likely reduce domestic crude prices relative to international
levels, slowing the pace of upstream
investment and future crude output. Modifying or
removing crude export restrictions would prevent
this from occurring by allowing domestic producers
to compete in global markets.
• Permitting companies to export crude oil in greater
quantities may reduce the rents refiners receive
relative to leaving current restrictions in place, but
will likely decrease the price Americans pay for
gasoline, diesel and other petroleum products and
benefit the US economy as a whole.

In light of these and other variables, we estimate
lifting current crude export restrictions could increase
US crude production anywhere between 0
and 1.2 million barrels per day on average between
now and 2025, and reduce domestic gasoline prices
by between 0 and 12 cents per gallon

Allowing exports would make the US more resilient,
not less, to supply disruptions elsewhere in
the world. Greater integration into global markets
would make US oil supply more responsive to international
market developments, mitigating the
impact on American consumers and the US economy
of production losses in other countries.

Lots of good statements, backup data, and graphs at the above link

 

[bocabull]

I'm not twisting any facts. We produce 9 million barrels a day and consume 19 million per day. Those are macro facts.

Net producers export and net consumers import. This is not rocket science. We are a net consumer. As Iran supply comes online prices will likely fall and our production will fall just like it did from the 80s until the Iraq invasion disrupted global supply.

The U.S. is a high cost producer. Middle East oil is cheap. Their lifting costs are a faction of ours. Iran & Iraq have more reserves than Saudi Arabia. We get that supply online and oil will go back where it belongs in the $25-$30 range. If US producers can't make money at the price leave it in the ground. No big deal.

 

[SoonerBounce13]

I'm not twisting any facts. We produce 9 million barrels a day and consume 19 million per day. Those are macro facts.

incorrect. I've already pointed that out.

Net producers export and net consumers import.

as a general rule, correct. But in reality no. Read the report i posted.

This is not rocket science.

You are right. Maybe you should leave the actual discussion to people that actually know what they are talking about instead of digging your hole deeper.

Middle East oil is cheap. Their lifting costs are a faction of ours.

Incorrect again. Some of their plays are lower cost. Not all of them. And again, the US is the biggest producer now. So take out our production and let OPEC run things again and see what happens. The majority of the world's oil is not economical at $30/BO. Not even close.
And BTW, there is a huge difference in lifting costs and drilling/completion costs. Lifting costs at $30/BO is not an issue. But drilling and completing is as the shale plays take a lot more capital.

Iran & Iraq have more reserves than Saudi Arabia. We get that supply online and oil will go back where it belongs in the $25-$30 range. If US producers can't make money at the price leave it in the ground. No big deal.

Again, the majority of countries will not operate at $30/BO. To even suggest it is nonsense and shows your ignorance on the subject. If we think global unrest and uprising is bad now, just wait if oil falls to $30. It isn't sustainable.

 

[bocabull]

The ban will stay in place. The people advocating for it's repeal are the same people who say cutting tax rates would decrease the deficit. The same people who said we would be welcomed as liberators in Iraq. The same people who said the stimulus would crash the economy. The same people who said fed monetary policy would lead to run away inflation. The same people who said Obamacare would be a job killer. The same people who said Obama tax rate hikes would kill the economy.

These people have been wrong on everything and are wrong on this. Barking dogs to be ignored.

 

[bocabull]

Speaking of Cheney remember when him and Rumsfeld said Iraqi oil would pay for the war? lol lol $2 trillions later. Good lord they are idiots.

 

[thebigabd]

The ban will stay in place. The people advocating for it's repeal are the same people who say cutting tax rates would decrease the deficit. The same people who said we would be welcomed as liberators in Iraq. The same people who said the stimulus would crash the economy. The same people who said fed monetary policy would lead to run away inflation. The same people who said Obamacare would be a job killer. The same people who said Obama tax rate hikes would kill the economy.

These people have been wrong on everything and are wrong on this. Barking dogs to be ignored.

Death panels... Obamacare patients were going to face a committee of people who would sentence them to death by not paying for or providing their care.

Loved that one.