Saudi imports/refining

[T. Adams + 1]

I don't believe that the Saudis should be allowed to import and refine their on oil in the United States while attempting to bankrupt the United States oil industry. All of the countries run by dictatorships are allowed to basically engage in free trade here in our country attacking our free enterprise and restricting our trade with them. At the least put a 25 dollar a barrel tariff on them until things change. America still is not educated as to the number of peoples peoples employment are related or indirectly related. I welcome other thoughts and opinions.

[JoMack + 547]

15 hours ago, T. Adams said:

I don't believe that the Saudis should be allowed to import and refine their on oil in the United States while attempting to bankrupt the United States oil industry. All of the countries run by dictatorships are allowed to basically engage in free trade here in our country attacking our free enterprise and restricting our trade with them. At the least put a 25 dollar a barrel tariff on them until things change. America still is not educated as to the number of peoples peoples employment are related or indirectly related. I welcome other thoughts and opinions.

Yup!  The government let Royal Dutch Shell sell it's 1/2 of Motiva refinery in Texas (the largest in the U.S.) to be sold to the Saudi's who owned the other 50%.  Makes you wonder?  Anti-trust anyone?  I remember when Bush was going to let Unocal go to China, but was pressured into stopping their bid and let it be sold to Chevron.  So Motiva is 100% owned by Saudi Arabia - go figure?  Now the Saudis are getting control of Europe's Majors - very bad, especially for oil markets and competition.  Trump is watching China, while the Saudis take the world.

[BroncoMike 0]

What happens to the huge influx of Saudi when it gets to Texas?  Does it all get refined, or does some (or all) of the surplus go into storage?  At 800K+ a day of new arrivals and given the lack of demand for refined products, do we get to pay twice for their oil--replacing US production plus whatever storage they might occupy that we could have used, and thus further squeeze US production?

[0R0 + 6,251]

I think that Trump is now on the Saudi bandwagon and intends to see the marginal producers that make 20 MOB/d (see my recent topic on Oilmaggeddon)of the supply go under and shut down production irrecoverable fashion. Particularly, Iran, Russia, Venezuella, Nigeria, Libya, Central Asia, Malay, Indonesia and assorted other producers like UK and Norway. And to bankrupt Iraq to the point of severing ties to Tehran permanently in order to obtain US and Gulf financial support.

There will be support for the US industry. Even Dems will line up for that now. The negative prices shocked them into trying to deflect blame from blocking Trump's previous attempts to help stabilize US oil industry by funding the SPR purchase of oil. 

That Saudi oil will be necessary to replace Venezuela heavy crude for blending with Shale LTO during the upcoming oil price boom to follow in recovery. 

Saudi is still killing off Russian exports to get Russia's oil revenues down to 0 and force them to shut down production in fields that can't be restarted. About 14k wells in Russia are on semi permafrost and can only be serviced during winter, If they are shut down without being restarted by September then they will all be frozen by December and will have to be re-drilled. 

It will hurt for a short while, but bottom line, Saudi is using this opportunity to zap competing oil production from other unfriendly countries. Then Shale producers and Saudi will be among the few that can restart production in a big way to capture the oil market in recovery. They just need help to keep it together over the next two months while Saudi attempts to drive oil negative in Europe and E Asia.  

[RSD + 41]

On 4/11/2020 at 1:02 AM, T. Adams said:

I don't believe that the Saudis should be allowed to import and refine their on oil in the United States while attempting to bankrupt the United States oil industry. All of the countries run by dictatorships are allowed to basically engage in free trade here in our country attacking our free enterprise and restricting our trade with them. At the least put a 25 dollar a barrel tariff on them until things change. America still is not educated as to the number of peoples peoples employment are related or indirectly related. I welcome other thoughts and opinions.

I believe that it is called a free market - and that's what U.S. oil producers want - until it has the potential to hurt them...

[T. Adams + 1]

You believe that the Saudis are participating as a free market country. You are correct that producers want a free market. I don't recall the Saudis allowing free trade in their country. In fact I don't believe the Saudis allow free travel inside their country. I don't believe that I have heard of any producers in the USA  promoting  any one sided free trade in the  USA.