Originally Posted by
Seran
Not entirely shocked you're completely ignorant on this topic, as has been your track record for nearly every other discussion.
Oil producers break even cost, ie the price per barrel of oil needed to justify the expense of drilling new wells is between $25-$31 dollars per barrel, dependent on rock quality. The break even point to continue service and maintain flow at existing wells is $17 dollars per barrel, according to Rystad Energy.
Lifting the oil export ban of fifty plus years exposed Americans to international oil manipulation by OPEC+ who collectively lowered their outputs to offset American oil flooding the market. This caused oil prices to surge, a massive benefit to US oil companies, but simultaneously began destroying the average America's retail buying power as refiners were forced to jack up their finished product prices to compete with demand for domestic oil. Our country is exporting 3-4 million barrels per day on average, swiftly depleting a strategic, finite resource.
Biden conversely can declare a national security threat and ban exports of crude and refined products to all but specific US allies such as the UK, EU and certain Asian Pacific partners, forcing OPEC+ to ramp up production on idled wells. American refiners who use our most common light, sweet crude would see a subsequent drop in prices due to abundant supply, driving down prices. While refiners who use heavier, sour crude will see a more moderate price drop as Texan and Californian fields with heavier crude will be unidled to meet demand for refineries that specialize in non-fuel products.
