Fossil fuel markers are global. Unless the US stops all of its oil producers from engaging in international trade, they cannot prevent prices from rising in the US. The fossil fuel lobby is extremely powerful in the US and it is very unlikely they would allow the state to take such an aggressive action against free trade, as it would deprive them of a golden opportunity for enormous profits. Not to mention it sets an incredibly dangerous precedent of the state exercising power over the private sector. And even if they do stop or severely curtail exports, that will have even bigger consequences on the US through the cascading effects of a global economic crash, since the US is highly embedded in the global economy.
Unless the US stops all of its oil producers from engaging in international trade
It could, though. The fossil fuel lobby would oppose this, of course, but they’re not the only lobby. Never mind the fact that all of Trump’s supporters drive oversized vehicles. Amazon doesn’t want high fuel prices, neither do Uber or DoorDash, neither do GM or Ford or Stelantis, neither do farmers, neither do construction companies, neither do data centers, neither do military contractors or the Pentagon, and so on. There are a lot of economic and political forces that want to keep fuel prices down.
This would begin a collapse of the old economic order, of course. If Canada and Mexico could be convinced to go along with this, lead by the US’s new “hemispheric dominance” strategy, we might see oil prices totally diverge between East and West.
Markets are global, but North America is somewhat shielded as the continent only has so much export capacity. Along with now controlling Venezuelan oil trade, I can see the USA picking winners and losers.
Fossil fuel markers are global. Unless the US stops all of its oil producers from engaging in international trade, they cannot prevent prices from rising in the US. The fossil fuel lobby is extremely powerful in the US and it is very unlikely they would allow the state to take such an aggressive action against free trade, as it would deprive them of a golden opportunity for enormous profits. Not to mention it sets an incredibly dangerous precedent of the state exercising power over the private sector. And even if they do stop or severely curtail exports, that will have even bigger consequences on the US through the cascading effects of a global economic crash, since the US is highly embedded in the global economy.
It could, though. The fossil fuel lobby would oppose this, of course, but they’re not the only lobby. Never mind the fact that all of Trump’s supporters drive oversized vehicles. Amazon doesn’t want high fuel prices, neither do Uber or DoorDash, neither do GM or Ford or Stelantis, neither do farmers, neither do construction companies, neither do data centers, neither do military contractors or the Pentagon, and so on. There are a lot of economic and political forces that want to keep fuel prices down.
This would begin a collapse of the old economic order, of course. If Canada and Mexico could be convinced to go along with this, lead by the US’s new “hemispheric dominance” strategy, we might see oil prices totally diverge between East and West.
I have no idea what is going to happen.
Markets are global, but North America is somewhat shielded as the continent only has so much export capacity. Along with now controlling Venezuelan oil trade, I can see the USA picking winners and losers.