For the uninformed
Crude oil is pumped from the ground and transported to a refinery.
Refineries have a maximum capacity that they can refine the crude oil into useable product-bunker oil, gasoline, kerosene, diesel, etc.
Our refineries are working at maximum capacity
We have limited storage capacity for this oil like those big tanks you see near highways
So that refined product has to be distributed
We export around 1/4 of that capacity or around 1.5 million barrels per day
If piggy says no exporting oil (which would be socialism btw), then the 1.5 million barrels per day has to go somewhere.
Pipeline distribution is maxed out.
So, if it isn't exported and cannot be put into the overland distribution network, where does it go?
Strategic petroleum reserve? Well, that sort of defeats the purpose of the export ban doesn't it. And filling the SPR when prices are high is well dumb
It can be put on ships and shipped to NYC and Boston and Maine and Seattle and San Fran etc
Yes, but switching to that model will take time as ships need to be rerouted, ports have to have shipping capacity, oil storage and trucking needs to be available.
That sort of distribution will take time
And what is the incentive to the oil companies? This is price control, hitting their profits
They will, of course, slow down refining so the oil can meet distribution, with that reduction goes gasoline, kerosene etc.
So, does piggy order the oil companies to keep their refining capacity up? Now that is serious socialism
China is moving its soybean business elsewhere... like Brazil...
China knows how to do austerity...