Amateur Megalomania

Lawmaker wants list of companies exporting US oil

With gasoline and crude oil prices at record highs, a U.S. lawmaker wants the Commerce Department to release the names of American companies that are shipping U.S. petroleum products to other countries.

Democratic Sen. Ron Wyden of Oregon — often a critic of big oil firms — says information on the 268 million barrels of U.S. petroleum products exported in 2004 is needed as Congress considers a broad energy bill.

Last time I checked, we had a free market. One can sell oil where one likes, and should these American companies find profitable markets overseas, then so be it.

You can not deal with shortages by diverting supply. I thought we had learned our lesson with rationing in the 70s? Price controls don’t control price. Rationing doesn’t solve shortages. Diverting products from the free flow of market demand serves no one in the end.

Any attempt to either stigmatize or criminalize the production and sale of oil anywhere in the world simply places constraint and prevents the system from reacting according to demand.

Does Mr. Wyden intend to seek legislation mandating that export companies forego profit overseas and sell for less at home? Is that healthy for the industry as a whole? Is he willing to put American workers out of a job so as to send cheaper gas to consumers at home?

If Mr. Wyden was truly interested in solving a supply issue, perhaps he will advocate drilling, either on Federal land or offshore. Perhaps he will support more refineries, or the lowering of the gasoline blend morass so as to increase the liquidity of gas supply? I’m not holding my breath.

We aren’t going to conserve our way out of the coming China Oil Drain. They ARE going to use it faster than the world can make it at the moment. If we don’t get serious about production, then we deserve the coming economic decline. And when China is willing to pay $4 a gallon over our $3, will Mr. Wyden demand the Saudis sell to us first?

Filed under: Economics