United State Is Shipping Gasoline/Petroleum/Oil Overseas:

It is eye catching to learn that United States is shipping Gasoline, Diesel and Jet Fuel overseas for years now. As we all have been told by leaders and experts that United States is addicted to oil and we consume too much oil of the world. Some went even further and accused our leaders that we go to the war in the Middle East and North Africa because of oils, conspiracy theories, that United States is fighting wars to secure oil. But with this new eye catching reporting, now United States is Selling Oil to other nations. How can it be possible, comparing these wild accusations of United States relationship with OPEC?

Facts are that United States is still importing Crude Oil, about nine million barrels a day,  AP Journal[1] reports. It uses its refineries here at home to produce the petroleum (Gasoline, Diesel and Jet Fuel) products that it exports overseas ready to use. In this case most of customers of United States exported oil products are countries that don’t have refineries.

However  the export of Petroleum products that United States ship out as export of is very small potion of the Crude Oil it import or produce here at home, reported by AP Journal[1]. But the fact the matter in this report is that United States is exporting Gasoline overseas. Do you know what that means? We are no longer addicted by oil as we once thought we were. Or we are no longer going assumed, as per numerous conspiracy theorists developers, going to the Middle East and or North America fighting the wars because of just securing the Oil Demand at home. We have enough reserves at home from Importing and or producing, and we have record selling Oil to overseas markets. That is the fact and can be proven; I don’t think knuckle-heads who believes in conspiracy theory can easily been won by this simple fact but it is the fact.

Historically United States has been producing Oil here at home; import Oil from OPEC markets and Selling Oil to the world markets. What I called eye catching is that when applying Supply and Demand Principles, of which every one out there understand these principles, we find an interesting trend. The correct recession slow down the United States Economy, every one of you agrees to this, right? Therefore, the persisting bad economy slowed down the demand of oil because not that many people can afford to drive around carelessly because economy is bad. Then, if demand is low automatically the supply becomes low because the economic factors affect the demand and supply. Then we come to the truth we once believed in that “Americans are addicted to Oil” of which we imported much of it. In the case of low demand that also affect supply to become low what do we do with the left-over oil that we use to consume when economy was very good and booming? Yes you are right we add it into our exporting bundle to the growing economies. Therefore, we ship more oil now than ever before because American Markets are inflexed by Oil.

Many, so called experts will claim the un-thinkable, such as regulations as causes of shipping more oils to the world markets. But, as smart and informed reader ask them that Nigeria produces very fine and cheep oil in the world markets, but why do Nigerian line up for gas in the gas stations although they have cheapest oil markets than any other country? I will tell you why, because there economic system (political-economy) is corrupt and creates instability. Then do we have such system here? No, free markets allows for business to buy and sell its products anywhere so long the business does not break the laws of the land and those of the Global Community. The notion that United States is exporting oil now than ever before because our regulations and all that none-sense is false and misleading. In the free market spirit, America is exporting oil today than ever because there are emerging markets out there that are hungry for oil and Americans are not as hungry for oil as assumed to be therefore the excess that Americans don’t need it goes to the oil-needy countries; and that is how free markets should work. Look at outsourcing of American jobs, like customer services, it is not because of regulations as many experts and excuses seeker pundits says, it is because of cheep labor and emerging competitions of these markets that fill-in for Americans who cant simply competing with the lowest standards of the emerging markets. Nothing is wrong with that because that is how free-markets should work, competition that brings competence.

Reference:

http://www.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1

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[1] http://www.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1  

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