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

[James Regan + 1,776]

Uummmmm But this isn’t or wasn’t news but it is now 🤔 

Shale industry lost $2.1 billion last year. A survey of 34 North American shale-focused drillers reported a combined $2.1 billion in 2019, according to IEEFA. That capped off a decade in which they spent $189 billion more than they generated.

Edited March 20, 2020 by James Regan

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On 3/15/2020 at 12:56 PM, 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. 

That is just a useless idea. The tariff would simply mean that US refiners lose their crack spread and shut down to retool for LTO. Just an economic loss with no purpose. Building new refineries for LTO is cheaper than retooling existing heavy oil facilities for LTO. Since the EPA has not yet succumbed to Trump's regulation cuts, there is no way to permit a new refinery in the US, so all that US capacity would just be duplicated outside the US and crimp crack spreads forever. The only useful intervention is to fill up the SPR. Low cost credit to fund storage in the private market will help with that as well. 

We want cheap oil for the vast bulk of the economy. Tariffs on oil are counterproductive. 

[James Regan + 1,776]

2 minutes ago, 0R0 said:

That is just a useless idea. The tariff would simply mean that US refiners lose their crack spread and shut down to retool for LTO. Just an economic loss with no purpose. Building new refineries for LTO is cheaper than retooling existing heavy oil facilities for LTO. Since the EPA has not yet succumbed to Trump's regulation cuts, there is no way to permit a new refinery in the US, so all that US capacity would just be duplicated outside the US and crimp crack spreads forever. The only useful intervention is to fill up the SPR. Low cost credit to fund storage in the private market will help with that as well. 

We want cheap oil for the vast bulk of the economy. Tariffs on oil are counterproductive. 

I remember that the USA doesn’t lose battles and is a free market, is it different now?

lets suck it up , throw the dice etc

Edited March 20, 2020 by James Regan

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1 minute ago, James Regan said:

Uummmmm But this isn’t wasn’t news but it is now 🤔 

Shale industry lost $2.1 billion last year. A survey of 34 North American shale-focused drillers reported a combined $2.1 billion in 2019, according to IEEFA. That capped off a decade in which they spent $189 billion more than they generated.

Well, they have been spending 65% less the last 4 years than they did in the 2012-2015 period. 

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Just now, James Regan said:

I remember that the USA doesn’t lose battles and is a free market, is it different now?

I would prefer the SPR to be rented out for private storage, but current circumstances of the Wuhan Coronavirus are preventing financing of that as everyone is running for cash. 

[James Regan + 1,776]

23 minutes ago, 0R0 said:

I would prefer the SPR to be rented out for private storage, but current circumstances of the Wuhan Coronavirus are preventing financing of that as everyone is running for cash. 

What about the salt caverns are they still full or in use at all? 250mil Bbls capacity there?

[James Regan + 1,776]

2 minutes ago, James Regan said:

What about the salt caverns are they still full or in use at all? 250mil Bbls capacity there?

Just googled it I guess that’s where the SPR is or was?

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1 hour ago, James Regan said:

Just googled it I guess that’s where the SPR is or was?

That be where it is.