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Trade Deficit in U.S. Plunges on Record Petroleum Exports

Samhain

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Trade Deficit in U.S. Plunges on Record Petroleum Exports - Bloomberg

The trade deficit in the U.S. narrowed more than forecast in December, led by record exports of petroleum that gave the world’s largest economy a boost at the end of 2012.

The gap shrank 20.7 percent to $38.5 billion, lower than any estimate in a Bloomberg survey of 73 economists and the least since January 2010, Commerce Department figures showed today in Washington. The jump in fuel sales to overseas buyers, combined with purchases of the fewest barrels of imported crude in almost 16 years, led to the smallest petroleum deficit since August 2009.

Goes to show you, drilling for oil in the US does have a very positive impact, even if it doesn't directly affect the price at the pump.
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........

We are importing less crude; at a 16 year low.
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........

"Energy independence" is a concept that doesn't really exist, energy is a globally traded item and even if the United States produced 100% of its needs we are still affected by global changes in supply and demand which affects the price of said energy regardless of whether we export or import any. Even if we were Saudi Arabia the price of gas wouldn't change that much.
 
"Energy independence" is a concept that doesn't really exist, energy is a globally traded item and even if the United States produced 100% of its needs we are still affected by global changes in supply and demand which affects the price of said energy regardless of whether we export or import any. Even if we were Saudi Arabia the price of gas wouldn't change that much.

While true, it would be nice to grow the economy with foreign money through exports.
 
While true, it would be nice to grow the economy with foreign money through exports.

It would also be nice not to subsidize a market that will save consumers no money whatsoever apparently as a result of said subsidies.....
 
While true, it would be nice to grow the economy with foreign money through
exports.

It wont happen. Japan just anounced they're going to do everything in their power to tank their currency so they can reduce their trade defict.

This is how currency wars start. Also oil is a commodity that's output is strictly controlled.

Too much into the market at onentime and you wipe out the incentive for exploration. They'll just leave it in the ground.

We cant put all of our hopes on oil especially with large portions of the worlds Governments currently experiecing next to no growth.
 
Trade Deficit in U.S. Plunges on Record Petroleum Exports - Bloomberg



Goes to show you, drilling for oil in the US does have a very positive impact, even if it doesn't directly affect the price at the pump.

Of course it helps, we don't use the oil we produce, we export it all and import the cheaper stuff. Oil drilling went way up in the last 6 years here in the US. Any time the pump price dips, there is conveniently a disruption in supply. Conspiracy? Probably not, but it makes one wonder wtf is going on.
 
Of course it helps, we don't use the oil we produce, we export it all and import the cheaper stuff. Oil drilling went way up in the last 6 years here in the US. Any time the pump price dips, there is conveniently a disruption in supply. Conspiracy? Probably not, but it makes one wonder wtf is going on.

It is a byproduct of the reduction of the amount of supply in days maintained in storage tanks--it reduces costs for the holding for companies but makes the supply chain more vulnerable to fluctuations.
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........

Probably because the oil companies are selling it at higher prices on the international market then they could domestically.
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........

Because politics doesn't control the business
 
Makes me wonder why with all the calls for "energy independence" we are exporting oil instead of consuming it and importing less........

We don't have a centrally planned economy in which an entity commands companies whom to sell/buy their product to/from.
 
We don't have a centrally planned economy in which an entity commands companies whom to sell/buy their product to/from.

If we still had a meaningful import/export tax system we would be in a better position over all. As is, Washington just keeps giving all the cake away to Asia.
 
We don't have a centrally planned economy in which an entity commands companies whom to sell/buy their product to/from.


Right. We are in a demand/supply economy where if supply is up and demand is down, then the price drops to increase the demand. OOOOPS. Tain't workin'. Sumpin' mus' be slippin'. The price is going up. What could cause that? Could our energy corporations be saying "Screw this country, China will give me ten cents more." Yassuh! Loyalty to the strong currency.
 
If we still had a meaningful import/export tax system we would be in a better position over all. As is, Washington just keeps giving all the cake away to Asia.

Protectionism doesn't help anybody. Trade is good for everybody. Comparative advantage and all that.
 
Protectionism doesn't help anybody. Trade is good for everybody. Comparative advantage and all that.

Normal trade, yes, not so much with natural resources when there already is a current deficit position unless they are not useful at all...
 
Normal trade, yes, not so much with natural resources when there already is a current deficit position unless they are not useful at all...

Why? And what do you mean by deficit position? Our companies aren't able to purchase as much oil as they're willing to pay for?
 
Why? And what do you mean by deficit position? Our companies aren't able to purchase as much oil as they're willing to pay for?

We import more energy resources than we export, hence our deficit position. Natural resources are the citizens' property not any individual company's...
 
We import more energy resources than we export, hence our deficit position.

And you think by effectively restricting the amount of energy resources we import to the point that it is less than or equal to what we export would benefit us overall? :confused:

Natural resources are the citizens' property not any individual company's...

Oh jeez.
 
Protectionism doesn't help anybody. Trade is good for everybody. Comparative advantage and all that.

It is good for Wall street and the AFL-CIO--not so much all those people whose plants have gone overseas.
 
And you think by effectively restricting the amount of energy resources we import to the point that it is less than or equal to what we export would benefit us overall? :confused:



Oh jeez.

Who said anything about restricting imports? This country needs to develop a comprehensive energy policy which utilizes all the forms of resources we have available...
 
It is good for Wall street and the AFL-CIO--not so much all those people whose plants have gone overseas.

And it wasn't good for handweavers when the power loom eliminated their jobs. Should we go back to handwoven t-shirts?
 
Who said anything about restricting imports?

I assume you did, when you said protectionism was beneficial in the context of a import-export deficit. Isn't the purpose of protectionism to effectively reduce imports relative to exports?

This country needs to develop a comprehensive energy policy which utilizes all the forms of resources we have available...

What an ambiguous and uncontroversial position. Why, I agree.
 
It is good for Wall street and the AFL-CIO--not so much all those people whose plants have gone overseas.
The AFL-CIO has been one of the single largest proponents of protectionism in the modern era. Enabling companies to seek cost cutting measures in the form of cheaper labor is completely antithetical to their stated goals.
 
I assume you did, when you said protectionism was beneficial in the context of a import-export deficit. Isn't the purpose of protectionism to effectively reduce imports relative to exports?



What an ambiguous and uncontroversial position. Why, I agree.

I don't recall using the term or advocating protectionism, but I do believe we, as a nation, should exert some control over the disposition of our energy resources, since it is a major component of our trade imbalance, and those trade imbalances send our currency (a measure of our wealth) to other nations and not re-invested here to reduce that dependance...
 
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