I regularly follow the writings James Hamilton, Economics Prof at UCSD.
He put something out recently on Iraq Oil & the US Economy. I think it’s worth your time to give it a read. It’s nothing that would be considered BREAKING NEWS, but it has some excellent anecdotal projections and such that we should all pay attention to, at least in my opinion.
Click on THIS LINK to read the item
Another item I came across this morning might be a ‘clip and save’ piece, too…perhaps a harbinger of things to come? The United States will allow Pioneer Natural Resources and Enterprise to export crude oil condensates, a very light version of their heavier cousins.
US refineries are engineered to crack the heavy grades and the shale boom is producing a lot of light grade product. The government is going to allow the exporting of this product, or at least is dipping a toe in the water right now.
This marks the first easing of a ban on crude exports in over 40 years…will it lead to greater legislation and fewer limits on exporting across the board? As the item suggests, don’t look for any movements on that front before November elections as exporting could lead to upward movement in US Crude prices…perhaps as we saw with propane in the USA this past winter.
It’s a very fascinating debate…to export or not to export…the overall benefits to business and the economy seems tantalizing…but would it ultimately lead to giant big oil profits along with even higher prices at the pump???