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U.S. Shale Oil wants Trump to change Jones Act. Just a ploy so they pay no U.S. corporate income taxes.

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(edited)

The Jones Act promotes U.S. shipping industry and ship building industry.  It mandates that all shipping between U.S. ports must use U.S. shipping companies using U.S. built ships.  

Good for U.S. ship industry.

The U.S. oil industry does not like the legislation. They say using foreign shipping is more competitively priced.  Just a ploy. 

If they can't use foreign flag ships , they can't use the Transfer Pricing Tax Loophole to avoid paying U.S any U.S. corporate income taxes.  

Trump should say no.  Unfortunately Trump usually does what his friend Harold Hamm asks.  Trump sometimes can be easily manipulated when it comes to things he knows nothing about. 

If Trump allows the legislation to be changed it will never be reinstated after the viral crisis ends. 

https://www.rigzone.com/news/wire/shale_drillers_seek_jones_act_waiver_to_ease_price_pain-13-mar-2020-161392-article/

Trump, JUST SAY NO

 

Edited by BLA

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It’s not about taxes, it’s about limiting the flow of foreign oil into the us.  

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13 minutes ago, Billyokla said:

CIt’s not about taxes, it’s about limiting the flow of foreign oil into the us.  

Can you explain this? I’m curious.

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It’s the anti dumping that the oil industry wants investigated. 

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5 hours ago, Billyokla said:

It’s not about taxes, it’s about limiting the flow of foreign oil into the us.  

WRONG ALL ABOUT NOT PAYING CORPORATE INCOME TAX. 

WHAT DO YIOU MEAN KEEPING OUT FOREIGN OIL.  

Most of foreign oil is from U.S. oil companies overseas joint ventures .  

Saudis  supply oil to ther Port Artur refinery.  

Oil has been trying to get out from under Jones Act for 8 years.

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(edited)

4 hours ago, Billyokla said:

It’s the anti dumping that the oil industry wants investigated. 

How are Saiudis going to dump oil on U.S.  Whos going to buy it ?   Don't believe the OP article.  

Let me know when the dumping starts.  Just more Harold Hamm desire for Federal Bail outs.  Harry has lost about $10 Billon from the recent highs of $40 share.  That sucks.  But why spend U.S. tax payers money to pump his stock.

Trump will do anything Harry asks him to.  He just doesn't know better.

Trump buying 75 million bbls of shale for SPR.  They don't need an SPR.  U.S. be trying to sell it off for years. 

Edited by BLA

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1 hour ago, BLA said:

How are Saiudis going to dump oil on U.S.  Whos going to buy it ?   Don't believe the OP article.  

Let me know when the dumping starts.  Just more Harold Hamm desire for Federal Bail outs.  Harry has lost about $10 Billon from the recent highs of $40 share.  That sucks.  But why spend U.S. tax payers money to pump his stock.

Trump will do anything Harry asks him to.  He just doesn't know better.

Trump buying 75 million bbls of shale for SPR.  They don't need an SPR.  U.S. be trying to sell it off for years. 

The US needs an SPR because of Saudi and Russian market share war. We have seen this during the formation of Standard oil. You need the SPR to keep the market supplied during the transition period of low investment having led to tight supplies and rising prices. It is a smart move. China is doing it with every spare dime on their books. 

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(edited)

51 minutes ago, 0R0 said:

The US needs an SPR because of Saudi and Russian market share war. We have seen this during the formation of Standard oil. You need the SPR to keep the market supplied during the transition period of low investment having led to tight supplies and rising prices. It is a smart move. China is doing it with every spare dime on their books. 

China doesn't produce 13 mm bbls day

Edited by BLA

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22 minutes ago, BLA said:

China doesn't produce 13 mm bbls day

I was not talking China production, but stuffing of their SPR. Why 13 mm bbls/d? 

When they need to they can pump out of SPR till prices are stable in the next spike up. 

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48 minutes ago, 0R0 said:

I was not talking China production, but stuffing of their SPR. Why 13 mm bbls/d? 

When they need to they can pump out of SPR till prices are stable in the next spike up. 

BLA can't grok strategic he's stuck in tactics

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Let it end, So tired of the United States having to fight with our hands tied behind our backs, We have an ocean of oil and were smart enough since the 70’s embargo to provide the Saudi’s with protection and go through their oil reserves! Now we don’t need them and it’s time to ramp up oil refiners, build them and become even more self reliant. It’s the same with Natural Gas, we need to do infrastructure and bring to to more towns.

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14 hours ago, BLA said:

The Jones Act promotes U.S. shipping industry and ship building industry.  It mandates that all shipping between U.S. ports must use U.S. shipping companies using U.S. built ships.  

Good for U.S. ship industry.

The U.S. oil industry does not like the legislation. They say using foreign shipping is more competitively priced.  Just a ploy. 

If they can't use foreign flag ships , they can't use the Transfer Pricing Tax Loophole to avoid paying U.S any U.S. corporate income taxes.  

Trump should say no.  Unfortunately Trump usually does what his friend Harold Hamm asks.  Trump sometimes can be easily manipulated when it comes to things he knows nothing about. 

If Trump allows the legislation to be changed it will never be reinstated after the viral crisis ends. 

https://www.rigzone.com/news/wire/shale_drillers_seek_jones_act_waiver_to_ease_price_pain-13-mar-2020-161392-article/

Trump, JUST SAY NO

 

It can have a time limit. 

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The American domestic maritime industry is experiencing the very same economic losses and uncertainties that are noted in the AXPC letter. For AXPC to seek a Jones Act waiver in these circumstances – so that its members could replace American mariners and American ships (which are plentiful) with foreign mariners and foreign ships – is unconscionable. We are all in this together. We have no comment on the other measures AXPC recommends. But for AXPC to ask to replace American mariners with foreign mariners for work in our home waters smacks of rank opportunism at a time of great crisis.

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(edited)

16 hours ago, 0R0 said:

I was not talking China production, but stuffing of their SPR. Why 13 mm bbls/d? 

When they need to they can pump out of SPR till prices are stable in the next spike up. 

You were justifying Federal bailout of U.S. oil industry by filling SPR. 

You seem to justify it by saying U.S. should do it because China is doing it.  

I think that does not make sense.  

China has limited oil production.  

U.S. produces 13 mm bbls/day.  The U.S. was in the process of reducing the SPR.  DONT NEED IT.

The U.S.  cancelled a plan sale of 12 mm bbls from SPR this week and instead announced a purchase of 75 mm bbls.

Edited by BLA

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(edited)

11 hours ago, ronwagn said:

It can have a time limit. 

How many times have you seen a temporary turn into a permanent change.

PLUS WHY SHOULD U.S. OIL COMPANIES PAY NO CORP INCOME TAXES.

Trump just like his opponents "Never let a crisis go to waste"

They argue it's more expensive.  That's because they can't hide from Corp INCOME TAXES. Plus have you seen the tanker rates for international tanker rates ?  Up 600% from virus.  

There goes their less expensive argument.

 

Edited by BLA
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13 hours ago, RichieRich216 said:

Let it end, So tired of the United States having to fight with our hands tied behind our backs, We have an ocean of oil and were smart enough since the 70’s embargo to provide the Saudi’s with protection and go through their oil reserves! Now we don’t need them and it’s time to ramp up oil refiners, build them and become even more self reliant. It’s the same with Natural Gas, we need to do infrastructure and bring to to more towns.

Your assumption about the US having an “ocean of oil” is only valid if the shale oil play has significant longevity and their production can be sustained, profitably, at it’s present level.

Presently, the data suggests that this may not be the case.

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16 hours ago, BLA said:

China doesn't produce 13 mm bbls day

Ultimately neither will we.

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(edited)

9 minutes ago, wrs said:

Ultimately neither will we.

Yes, but 20 years at 13 mm is plenty good. 

Quit whining

Edited by BLA

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6 minutes ago, BLA said:

Yes, but 20 years at 13 mm is plenty good. 

Quit whining

That remains to be seen but I was only stating a fact.  We know the oil depletes and we don't know if it will be fully exploited due to a number of factors that have been discussed on numerous threads here. Certainly, 13mmbbl/day is in the rear view mirror for now.  There will be production declines this year, I expect to see an 11 handle on that number by June.

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2 minutes ago, wrs said:

That remains to be seen but I was only stating a fact.  We know the oil depletes and we don't know if it will be fully exploited due to a number of factors that have been discussed on numerous threads here. Certainly, 13mmbbl/day is in the rear view mirror for now.  There will be production declines this year, I expect to see an 11 handle on that number by June.

11 million seems right. 

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1 minute ago, BLA said:

11 million seems right. 

I am not up for selling my oil at $26/bbl again.  Unfortunately, I have no say in that.  

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Ridiculous for the US to sell oil at these levels. Trump should slap a 25% tariff on ME oil. Offshore development—especially the Guyana find, will suffer almost as as shale. This is no longer a shale love or hate market but an American existential threat imposed by a deranged monarchy. 

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(edited)

35 minutes ago, Gerry Maddoux said:

Ridiculous for the US to sell oil at these levels. Trump should slap a 25% tariff on ME oil. Offshore development—especially the Guyana find, will suffer almost as as shale. This is no longer a shale love or hate market but an American existential threat imposed by a deranged monarchy. 

A lot of the oil from ME coming to U.S. is heavy oil from Exxon, Chevron, etc JVs in Iraq and Saudi Arabia.

Approx 50% of GOM refineries optimized for Heavy oil.  They between 4 to 5 million/day. 

Get a portion of that from Canada now. But not all. 

Edited by BLA

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On 3/15/2020 at 8:10 AM, BLA said:

You were justifying Federal bailout of U.S. oil industry by filling SPR. 

You seem to justify it by saying U.S. should do it because China is doing it.  

I think that does not make sense.  

China has limited oil production.  

U.S. produces 13 mm bbls/day.  The U.S. was in the process of reducing the SPR.  DONT NEED IT.

The U.S.  cancelled a plan sale of 12 mm bbls from SPR this week and instead announced a purchase of 75 mm bbls.

We do need it because even US shale can't turn on a dime and prices can rise to extreme and economically debilitating levels after the lack of investment in long term large oil deposits for 5 years running and much less to come. 

China's SPR will help China and would act as a capping mechanism for the spike period before Shale turns on and other marginal producers return to production. The US will need the same domestically. So does Europe, but I don't see them doing much in that regard.

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