Quote:
Originally Posted by Montana Man
Well, consider when we were net exporters of oil and the price of oil then. Now that we are dependent on foreign oil again and something jumps off, look what happened. In the case of CA, they have the highest fuel prices in the country and it's not due entirely to traders.
Much like the components we need to build something as simple as a truck, when we enslave ourselves to those outside our control, we get what we get.
|
Of course regional taxation affects the final consumer price. So a place like CA will always be higher than another region with lower taxation. But, the recent price spikes are not due to California suddenly changing their policies; it is, as stated earlier, largely due to fear in the marketplace.
And, BTW, the US has never been a net exporter of oil. It reached parity, briefly, in 2018 due to the massive increase in shale production. However, much of that shale production was not sustainable and has been pulled back due to the unprofitable nature of those fields. It is not at all correct to say that the current price hikes are primarily caused by changes in US domestic oil production. Again, it may be a popular notion but it is not based on the reality of the energy markets.
Brad