yesman182 Posted January 21 Posted January 21 On 1/15/2025 at 9:05 AM, SharperDingaan said: Just to throw out some numbers ..... for simplicity assume just one seller, and one US buyer refining Alberta crude. No tariffs. 100 bbl sold @ USD 60 world price; seller gets USD 6,000, refiner pays USD 6,000. > US 25% tariff. 100 bbl sold @ USD 60; seller gets USD 6,000, tariff collector gets USD 1,500 (25%), refiner pays USD 7,500. US consumer pays more. But the refiner can only pay USD 6,000 ...... > US 25% tariff. 100 bbl sold @ USD 60; seller gets USD 4,800, tariff collector gets USD 1,200 (25%), refiner pays USD 6,000. Producer gets 12% less revenue on the same 100 bbl sold. Need a solution .... Cut US bound production to 80 bbls, sold at a higher price. Sell the remaining 20 bbls to Asia from BC tidewater. > US 25% tariff. 80 bbl sold @ USD 60; seller gets USD 4,800, tariff collector gets USD 1,200 (25%), refiner pays USD 6,000. US consumer pays more as the refiners cost is now USD 75/bbl, and in the short-term the refiner can't refine crude from anywhere else. > No US 25% tariff. 20 bbl sold to Asia @ USD 60; seller gets USD 1,200. Producer gets a total of USD 6.000 (4,800 + 1,200) on the 100 bbl sold. As long as the new west coast pipe and rail has the capacity; the only folks getting hurt here are the US consumer, and it is the US tariff collector that has their money. And if that BC tidewater buyer is US tariff exempt ..... they merely sail a tanker down the west coast, and sell the crude to the refiner at a very profitable USD 75/bbl less costs. The way out is new and big pipe going south. Drop the tariffs, double production, spread the costs over a bigger base, and everybody wins. SD I was under the impression that the importer paid the tariff. So in the case of Canadian oil, it would be the US refiner. But Trump talked about setting up a ERS (external revenue service) to manage the tariffs paid by foreign nations. If these tariffs are put in place on Canadian crude headed to the US, who will send the check to the US government?
Spekulatius Posted January 21 Posted January 21 21 minutes ago, yesman182 said: I was under the impression that the importer paid the tariff. So in the case of Canadian oil, it would be the US refiner. But Trump talked about setting up a ERS (external revenue service) to manage the tariffs paid by foreign nations. If these tariffs are put in place on Canadian crude headed to the US, who will send the check to the US government? Tariffs are just consumption taxes on foreign goods . This is not that complicated. There will be no checks from other governments. He might as well have the IRS manage the tariffs.
Parsad Posted January 23 Posted January 23 https://www.yahoo.com/news/china-artificial-sun-sets-nuclear-133129651.html Cheers!
fareastwarriors Posted January 24 Posted January 24 (edited) Chevron’s Kazakhstan Oil Field Expands as Trump Pushes OPEC Tengiz currently produces about 700,000 barrels of crude per day. Neff stressed the importance of the Kazakhstan asset in the upstream portfolio. With 1 million barrels of oil equivalent per day in 2025, it’s about the same as Chevron’s US Permian Basin output, which is also expected to reach 1 million barrels a day this year Edited January 24 by fareastwarriors
SharperDingaan Posted January 24 Posted January 24 You all might want to take a closer look at the levels of the US Strategic Petroleum Reserve, Trumps yapping around 'Drill Baby Drill' and cheaper oil, and the declining US drill count. The only way this works is if the fed agrees to tax collection via an oil PIK, and the 'cash saved' goes into additional drilling at shale reservoirs that are already tied into the collection networks. Once the reservoir is primarily gas, it then becomes a strategic gas reserve that is accessed via these same wells. The oil pumped into the SPR, replaced from new reserves in the various restricted reservoirs that Trump is busy making available. SD
Warner Posted Tuesday at 05:16 AM Posted Tuesday at 05:16 AM Chevron does not well advertise publically that in 2033 the lease is up in Tengiz and they are likely to loose their most profitable asset. They don't currently have anything to replace it.
yesman182 Posted Thursday at 10:17 PM Posted Thursday at 10:17 PM Trump is asked if Canada's oil will be part of the tariff. He said Canada is taxing the Us with a deficit. Then asked again and says "oil has nothing to do with it". Seems like he doesn't want a tariff on oil. Happy to hear how others interpret him.
SharperDingaan Posted Friday at 01:39 AM Posted Friday at 01:39 AM Calls assuming he defers the implementation. Puts assuming he is dumb enough to do it. SD
cubsfan Posted Friday at 06:22 PM Posted Friday at 06:22 PM 16 hours ago, SharperDingaan said: Calls assuming he defers the implementation. Puts assuming he is dumb enough to do it. SD Promises made, promises kept.
bizaro86 Posted Friday at 10:31 PM Posted Friday at 10:31 PM UK court strikes down 2 offshore approvals. Approvals granted in 2022 on projects that are well into construction https://www.bbc.com/news/articles/c3e1pw7npklo.amp
formthirteen Posted yesterday at 07:41 AM Posted yesterday at 07:41 AM (edited) 16 hours ago, bizaro86 said: UK court strikes down 2 offshore approvals. Approvals granted in 2022 on projects that are well into construction https://www.bbc.com/news/articles/c3e1pw7npklo.amp ”The effects of climate change” is politics depend on who you ask: Quote In a 57-page judgement, Lord Ericht wrote that there was a public interest in having the decision "remade on a lawful basis" because of the effects of climate change - which he said outweighed the interests of the developers. The UK should ask Norway about the effects of climate change. If the UK doesn't pump oil, will it affect CO2 emissions in the UK? If the UK sets up a sovereign wealth oil fund and invests in nuclear energy, will they have a nuclear disaster or two within 100 years? Politics all the way down... Edited 19 hours ago by formthirteen
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now