Sunday, May 3, 2015

Selling America Down The Tubes

Regarding "Pressure builds to export oil to Mexico" (Saturday Front Page), I have many questions, the first being: why would a country that still imports almost 50% of its oil export any of it?  The second being: Why would the U.S. export oil to a country - Mexico - that itself exports 800,000 barrels of oil per day back to the US ?  The answer to these questions is that the proposed export of US crude would go to Mexican refineries, thus allowing them to increase the export of high profit products such as gasoline, mostly back to the United States.  

But what possible sense does it make to enable the export of crude to Mexican refineries so they can take business from US refineries?  Mexico's corrupt and inefficient oil sector is long overdue for reform, and the last thing it needs is a lifeline from the U.S. at the expense of U.S. businesses.

I believe the simplest explanation is likely the best: once exports are allowed to Mexico to benefit their refineries, the deal will quickly evolve to allow the bulk export of crude through Mexico to voracious overseas markets such as China, the natural end result being soaring prices for a barrel of oil and huge profits for domestic oil producers.  It would also mean the return of $4.00 per gallon gas for American consumers and the further destruction of America's manufacturing sector. 

This deal reeks on every level.  It should be rejected out of hand, and the politicians enabling it should be exposed.

Pete Smith
Houston, TX

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