Richard Deshong
For the past twenty-four months, the USA has been a net exporter of oil and natural gas. Does this mean we are energy independent? No, but it does beg the question “why”.
To answer this question, one needs to understand the difference between varying types of oil. In the simplest forms there are “sweet” oils, those with a lower sulfur content, and “sour” oils, those with a higher sulfur content. Due to the way platonic land formation works, almost all oil pumped east of the Rocky Mountains is sweet, and oil pumped west of the Rockies is sour. And since it requires different processes to refine sweet and sour oils, refineries west of the Rockies were built to almost exclusively refine sour oil into gasoline. And there are not sufficient reserves of sour oil to satisfy demand of gas west of the Rockies so refineries must obtain additional supplies from other sources outside the USA –today mainly Saudi Arabia, Venezuela, and Ecuador.
Okay, so why not switch west coast refineries from using sour oil to sweet oil and supply them from excess sources found elsewhere in the USA? Afterall, almost all the USA exports of sweet oil are currently going to Europe who already redesigned many of their refineries to eliminate their dependency on Russian and Middle Easter oils. Logic would say we could then reroute oil pumped in Texas, Oklahoma, Louisiana, the Gulf, etc. to refineries in California, Oregon, and Washington and be totally independent on foreign oil for our gasoline needs. Sounds simple, doesn’t it? But there are three major factors that make this difficult at best, and perhaps even impossible.
First, there are no oil pipelines of sufficient size to move sweet oil over or around the Rockies and no stomach to build them. It is easier to simply complain that the Keystone pipeline was stopped so “Canadian very high sulfur” oil destined to non-US buyers couldn’t cross America’s largest freshwater aquifer than it is to ask for the hundreds of billions of dollars it would require to build new east-west pipelines.
Second, reconditioning west coast refineries would cost tens of billions of dollars to process sweet crude versus sour crude, and the big oil and refinery companies don’t want to spend the money at a time when the advent of electric cars is on the rise, especially in more progressive west coast states. The return on investment just isn’t there to make it profitable.
Third, and what I personally find the most ludicrous, is it is against the law to ship oil, gasoline, or even liquid gas pumped anywhere in the USA, or for that matter any product made in the USA, from one US port to another by ship. It seems in 1920 the Merchant Marine Act was passed to give a boost to US ship builders and shipping companies. This law, also known as the Jones Act, named after a Republican Member of the House of Representatives, made it illegal to ship from any US port to another US port using anything other that a ship built in the USA, by a US company, flying a US flag, and manned by US citizens. Perhaps this law had some merit in 1920, but in today’s world where no seagoing oil tankers are made in America, are owned by American companies, fly under American flags, nor are crewed by Americans, it makes it impossible to reposition oil pumped east of the Rockies to the West coast.
Add to all this that to reduce air pollution many parts of the US, including major population centers in California as well as Maricopa County, are required to use specially blended fuels during hotter summer months, the price of a gallon of gas is kept artificially high except in times of extremely low demand, such as existed in 2020 during the pandemic.
Here again, I believe we all should be screaming at our respective representatives in Washington to get off their collective asses and to their jobs. Instead of trying to pass bills in the House of Representative that don’t have a snowballs chance in hell of passing they should be trying to negotiate bipartisan bills to address real problems effecting real Americans. Likewise, in the Senate, if they insist on requiring a super majority to get anything done, enough Republicans need to grow a pair and put their country ahead of their party and do what is best for most Americans, especially the working class.
Sorry, all this won’t fit neatly on a bumper sticker, but life is too complicated to be left to the simple minded.
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