Block, Siteadmin, SkipCaptcha, Upload, Automoderated users, delete, edit, move, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, protect, rollback, Administrators, template
295,143
edits
Changes
Jump to navigation
Jump to search
Line 171:
Line 171: + + + + + + + + + + + − +
→Crude oil
====Crude oil====
====Crude oil====
Up until the early 21st century, a robust import/export trade of diesel and gasoline existed between the U.S. and Europe. Economically, that trade flow could accommodate the logistics costs of shipping finished products across the Atlantic Ocean, and the excess diesel in the U.S. was absorbed by the European market, and the reverse flow for gasoline was profitable for European refiners. Within the last decade or so, Europe has begun to legislate the diesel-powered car out of existence, so the diesel flow from the U.S. has shifted to other continents, such as South America.
Europe, on the other hand, needs more gasoline than in the past, as sales of petrol-powered cars have surpassed 70% of total automobile sales in some EU countries. And Europe must find markets for the excess diesel produced by their heavy-crude refineries.
Crude Oil Price Cap
In addition to this destabilizing trend that started in the 2010s, a further upheaval arrived in 2022 with discussions to ban Russian crude in the EU because of the “war” in Ukraine. Some EU countries objected to a ban because they are landlocked and rely on pipeline deliveries, thus they do not have logistical alternatives. Others objected to an outright ban because of the fear of skyrocketing crude prices worldwide, and fears of the effect that would have on world economies.
Ultimately, the G7 settled on the idea of a price cap on Russian crude. Because of the objections of the EU countries stated above, they were exempted from the cap mechanism by imposing the cap on waterborne shipments of crude only. But Germany, the Netherlands, Italy, and other EU countries would be affected because they have historically relied on Russian crude, and their refineries were “tuned” to Russian (Urals) crude. And these countries were not exempted from implementing the cap.
Since a large number of the refineries that purchased Russian crude were built to process that type of oil, they encountered difficulty in finding alternate supplies that match the Urals blend from Russia.
Joe Biden, who on the day he seized power limited America's productive oil capacity, reversing America's role as the largest exporter of oil to a net importer again, announced America was at war and wrote to American oil companies on June 15, 2022 demanding they increase production: "At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable”.
Joe Biden, who on the day he seized power limited America's productive oil capacity, reversing America's role as the largest exporter of oil to a net importer again, announced America was at war and wrote to American oil companies on June 15, 2022 demanding they increase production: "At a time of war, refinery profit margins well above normal being passed directly onto American families are not acceptable”.
After the EU passed an anti-[[free market]], Sovie-style price cap of $60 per barrel on Russian [[crude oil]] in early December 2022, ''[[The Economist]]'' magazine commented, "“The European Union oil price cap may result in violent spikes...Everything depends on how Moscow responds...The Kremlin could cut its oil exports, relying on a smaller group of non-Western tankers and insurers, and sending global prices spiraling”. [[BP]], formerly known as British Petroleum before going global, owns a 19.75% share of the Russian energy giant [[Rosneft]]. In December Rosneft paid BP a £580 billion pound sterling dividend payment (USD $712 billion). Ukrainian dictator Volodymyr Zelensky called the money paif to the NATO ally which was supplying lethal weapons to the Zelensky regime, "blood money."<ref>https://www.theguardian.com/business/2022/dec/02/bp-shares-in-kremlin-oil-firm-are-blood-money-says-zelenskiy-adviser</ref>
After the EU passed an anti-[[free market]], Soviet-style price cap of $60 per barrel on Russian [[crude oil]] in early December 2022, ''[[The Economist]]'' magazine commented, "“The European Union oil price cap may result in violent spikes...Everything depends on how Moscow responds...The Kremlin could cut its oil exports, relying on a smaller group of non-Western tankers and insurers, and sending global prices spiraling”. [[BP]], formerly known as British Petroleum before going global, owns a 19.75% share of the Russian energy giant [[Rosneft]]. In December Rosneft paid BP a £580 billion pound sterling dividend payment (USD $712 billion). Ukrainian dictator Volodymyr Zelensky called the money paif to the NATO ally which was supplying lethal weapons to the Zelensky regime, "blood money."<ref>https://www.theguardian.com/business/2022/dec/02/bp-shares-in-kremlin-oil-firm-are-blood-money-says-zelenskiy-adviser</ref>
====Shale oil====
====Shale oil====