Rafael Corredoira's understanding and explanation of the U.S. petroleum markets is ludicrous. ("More domestic production won't lower gas prices," April 20.) I would need a full page to rebut his assertions.
He is as astute as Nancy Pelosi and her view that more imported Canadian crude would be refined and exported. More crude is imported than is required for U.S. markets. Petroleum products are exported because there has been excess refining capacity in the U.S. since 2008 when the U.S. economy went into the tank and oil demand declined. To suggest that U.S. companies should import OPEC crude and sell the products at a loss to drive down prices in the U.S. is scary to say the least.
His comments about nationalization and export controls are right in line with Argentina and their nationalization of YPF. That country has cycled from one financial crisis to another between totally corrupt and inept elected governments and military control ever since the Perons ruled.
The whole point of becoming self sufficient in energy — as well as importing crude from friendly Canada — is to become indifferent to crude purchased from countries that want to destroy us. Oil prices are set by global demand. If we produced additional crude so that global productive capacity is in excess of demand, world crude prices would fall, and as Mr Corredoira correctly observes, OPEC would be forced to cut production to maintain prices. However, OPEC members are not all equals in terms of production and population. Countries such as Nigeria cannot cut production because they have an immediate need for cash.
It is in our extreme interest to spread disharmony in OPEC and reduce their hold on our economy. The best way to do this is with increased oil production.
Chuck Campbell, WoodstockCopyright © 2014, The Baltimore Sun