America’s Path to Greatness: Border Adjust Oil

[IsailedawayfromFR]

- Excerpt:

Impose a border adjustment tax of 20% for imports of oil into the USA to level the playing field for the manipulated oil market. At current oil prices of $55 per barrel and imports of 310 million barrels per month, this would raise about $40 billion per year.  Of course, consumption patterns would change with the new tax.  But the monies collected could be used as a portion of the overall tax reduction plan or to fund other strategic initiatives such as increased military funding.

Notes: There is major debate about the wisdom of a total 20% border tax in the Paul Ryan plan on all imports. I will leave that debate to others but I do believe implementing it in oil is valid. Yes, the price of gasoline will go up temporally for consumers until foreign oil is phased out. An $11 per barrel increase would increase the price of gasoline about 26 cents per gallon if we used 100% imported oil. At the current import rate of 24%, gasoline would probably increase 10 to 20 cents per gallon depending on market dynamics.

- All that the Federal Government has to do is to implement the oil border adjustment and the promised tax and regulation reductions including enabling private shale oil production on government lands. Private industries will do the rest to make us energy independent by 2020. 

- Next, exit our military involvements in the Middle East. If we are energy independent, we would have no rational strategic foreign policy interests in the Middle East. USA money would no longer purchase imported oil which is the main revenue source to fund terrorism and dictatorships.

- Phase out the government subsidies for solar power, wind power and electric vehicles.

- In 2020 eliminate the Department of Energy and Congratulate Rick Perry on achieving energy independence.

America can be the low cost producers of oil, gas, electricity and chemicals, creating millions of jobs, increaseing wages and creating individual and private company wealth. It would improve our security, defund terrorism and get the USA out of Middle East conflicts. America would not only be great but we would flourish!

http://www.americanthinker.com/articles/2017/03/americas_path_to_greatness_border_adjust_oil.html

[thackney]

Insanity.

It would cause us to lose $100 Billion in Refined Products Exports by pricing us out of the market.

Net result?  Shutdown some refineries and lose US jobs.

An $11 per barrel increase would increase the price of gasoline about 26 cents per gallon if we used 100% imported oil. At the current import rate of 24%, gasoline would probably increase 10 to 20 cents per gallon depending on market dynamics.

Proof this person doesn't understand basic economics.  If the price of 24% of our imported oil jumped $11 a barrel, do you think the domestic oil competing with it will stay the same price?  Why would it?  I can add $10.99 to the price of my oil and still beat every other choice you have.

[Weird Tolkienish Figure]

Insanity.

It would cause us to lose $100 Billion in Refined Products Exports by pricing us out of the market.

Net result?  Shutdown some refineries and lose US jobs.

Proof this person doesn't understand basic economics.  If the price of 24% of our imported oil jumped $11 a barrel, do you think the domestic oil competing with it will stay the same price?  Why would it?  I can add $10.99 to the price of my oil and still beat every other choice you have.

 

[thackney]

The biggest export this country has and he wants to shut it down?

The top exports of the United States are:
Refined Petroleum ($103B),
Cars ($60.8B),
Planes, Helicopters, and/or Spacecraft ($53.2B),
Vehicle Parts ($38.4B) and
Packaged Medicaments ($38.1B)

http://atlas.media.mit.edu/en/profile/country/usa/

[geronl]

Pure insanity

[ABX]

That's not how this works; that's not how any of this works.

[thackney]

An $11 per barrel increase.... Private industries will do the rest to make us energy independent by 2020. 

I cannot let this one go either.

4 years of oil averaging $93~98 a barrel (2011-2014) rose our domestic production by 3.8 million barrels a day.

https://www.eia.gov/dnav/pet/pet_pri_fut_s1_a.htm

https://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_a.htm

But now three years of oil at $66 a barrel is going to grow on top of that growth another 10 million barrels a day?

https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbblpd_m.htm

[IsailedawayfromFR]

The biggest export this country has and he wants to shut it down?

http://atlas.media.mit.edu/en/profile/country/usa/

Where in what you read did you see it being shut down?

Are you hyperventilating?

[IsailedawayfromFR]

I cannot let this one go either.

4 years of oil averaging $93~98 a barrel (2011-2014) rose our domestic production by 3.8 million barrels a day.

https://www.eia.gov/dnav/pet/pet_pri_fut_s1_a.htm

https://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_a.htm

But now three years of oil at $66 a barrel is going to grow on top of that growth another 10 million barrels a day?

https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbblpd_m.htm

Better not read what you want to read in those stats.   Recall we are in a different time and regime on technology of that production.

[thackney]

Where in what you read did you see it being shut down?

Are you hyperventilating?

If you add $11 a barrel to the cost above what the rest of the world pays, do you think we will be able to sell any on the open market?

[thackney]

Better not read what you want to read in those stats.   Recall we are in a different time and regime on technology of that production.

You think we have made massive changes in the last 3 years?  Enough to nearly triple the production growth at 2/3's the price?

[andy58-in-nh]

Protectionism and isolationism are two sides of the same coin of economic illiteracy.

[Weird Tolkienish Figure]

Protectionism and isolationism are two sides of the same coin of economic illiteracy.