Posted:
#151
Quote Originally Posted by thirdperson:
In 2015, congress repealed 40-year-old ban on selling oil from strategic reserves to other countries. According to Axios, US energy department report that Trump administration sold oil from strategic reserves to PetroChina. In 2022, strategic reserve oil sold to China represents 2% of all US oil sold to China. So new ban won't prevent 98% of US oil sold to China. Energy industry analysts are puzzled why selling oil to China is controversial. Since oil is an international commodity, what matters for price is how much there is. Where oil goes is irrelevant. Biden administration lowers prices by selling oil to US companies. Not illegal for them to re-sell that oil to highest bidders. While some oil ends up with other countries, the impact on US economy should be the same. So there should be no reason for outrage.
In 2015, congress repealed 40-year-old ban on selling oil from strategic reserves to other countries. According to Axios, US energy department report that Trump administration sold oil from strategic reserves to PetroChina. In 2022, strategic reserve oil sold to China represents 2% of all US oil sold to China. So new ban won't prevent 98% of US oil sold to China. Energy industry analysts are puzzled why selling oil to China is controversial. Since oil is an international commodity, what matters for price is how much there is. Where oil goes is irrelevant. Biden administration lowers prices by selling oil to US companies. Not illegal for them to re-sell that oil to highest bidders. While some oil ends up with other countries, the impact on US economy should be the same. So there should be no reason for outrage.
Makes sense in a free market.
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