But for the US, there's no question like that. It produces a lot lot more than it consumes anyway. There can't be a shortage.
Yes US produces mostly light crude and production of refined products requires also inputs of heavy one, but it's not produced in the Middle East anyway, so current situation can't impact that, either.
> But for the US, there's no question like that. It produces a lot lot more than it consumes anyway. There can't be a shortage.
It's a global commodity. The reason there likely won't be a shortage in the U.S. has little to do with our production volumes, and has more to do with the fact that we're rich enough to be able to afford the higher prices when many other countries will have to forgeo using oil.
But if we weren't a rich country and we couldn't afford to pay a higher price for oil than many other nations on earth, we would produce and export oil to people that can pay more.
Ireland during the famine produced enough food to feed every person. But much of it was exported to other places, that could afford to pay a higher dollar amount to survive.
The US is also sovereign and if things would become really bad the government would just ban exports.
Ireland wasn't sovereign and it turns out, as much as other countries act brotherly (not that the UK really did), nobody really cares about you like you care.
Depends what 'sovereign' implies. The will of the people? Or maybe the will of those that lobby government the hardest (e.g. oil companies)? If the latter, then export bans might not arrive anytime soon.
'Sovereign' here means that the US govt is able to impose export restrictions, not that the People's will or special interests' desires are relevant. Of course 'can' != 'will'.
For example, in the UK Parliament is sovereign, not the people. That's effectively how it is in representative democracies or republics where there is no fast representative recall mechanism.
The U.S. Constitution doesn't say that Congress is sovereign, but the effect is the same. For that matter, the U.S. President has a great deal of power.
anovikov · · focus · HN ↗
Yes US produces mostly light crude and production of refined products requires also inputs of heavy one, but it's not produced in the Middle East anyway, so current situation can't impact that, either.
ncallaway · · focus · HN ↗
It's a global commodity. The reason there likely won't be a shortage in the U.S. has little to do with our production volumes, and has more to do with the fact that we're rich enough to be able to afford the higher prices when many other countries will have to forgeo using oil.
But if we weren't a rich country and we couldn't afford to pay a higher price for oil than many other nations on earth, we would produce and export oil to people that can pay more.
Ireland during the famine produced enough food to feed every person. But much of it was exported to other places, that could afford to pay a higher dollar amount to survive.
oblio · · focus · HN ↗
The US is also sovereign and if things would become really bad the government would just ban exports.
Ireland wasn't sovereign and it turns out, as much as other countries act brotherly (not that the UK really did), nobody really cares about you like you care.
tmnvix · · focus · HN ↗
cryptonector · · focus · HN ↗
tmnvix · · focus · HN ↗
> possessing supreme or ultimate power: in modern democracies the people's will is in theory sovereign.
cryptonector · · focus · HN ↗
For example, in the UK Parliament is sovereign, not the people. That's effectively how it is in representative democracies or republics where there is no fast representative recall mechanism.
The U.S. Constitution doesn't say that Congress is sovereign, but the effect is the same. For that matter, the U.S. President has a great deal of power.