The Chicken Sh!t World

[schmenke]

Dumping is difficult to achieve with oil as its price is heavily controlled by the world market. Not to mention that Libya, Iraq and Iran (your so called "rebel groups") are all members of OPEC which manages production volumes, which in turn affects oil prices.

Also, when countries "sell" oil internally they are really selling to oil companies that happen to have refineries or upgrade facilities that can transform the crude feedstock into other marketable materials, e.g. diesel, gasoline, plastics, etc. Governments generally profit from crude sourced internally in two ways:
1. If the government happens to “own” a national petroleum company (think CNOOC in China or Petrobas in Brazil), or;
2. The government levies royalties on the crude produced by petroleum developers (this is what Canada does).

Ironically countries like Canada has an abundance of crude oil but very little refinery or upgrading capacity. 90% of our oil is exported to refineries in the U.S. and then the final product (e.g. gasoline) is imported back to Canada.

[Rudy Tamasz]

Dumping is difficult to achieve with oil as its price is heavily controlled by the world market. Not to mention that Libya, Iraq and Iran (your so called "rebel groups") are all members of OPEC which manages production volumes, which in turn affects oil prices.

Also, when countries "sell" oil internally they are really selling to oil companies that happen to have refineries or upgrade facilities that can transform the crude feedstock into other marketable materials, e.g. diesel, gasoline, plastics, etc. Governments generally profit from crude sourced internally in two ways:
1. If the government happens to “own” a national petroleum company (think CNOOC in China or Petrobas in Brazil), or;
2. The government levies royalties on the crude produced by petroleum developers (this is what Canada does).

Ironically countries like Canada has an abundance of crude oil but very little refinery or upgrading capacity. 90% of our oil is exported to refineries in the U.S. and then the final product (e.g. gasoline) is imported back to Canada.

Interesting. That's pretty much the situation we have here. We have some crude oil in Belarus, but not a lot. But we have refinery capacities, which Russia lacks. Russians send us crude oil, we process it and sell gas back to Russia and other European countries. In 2005-2010 that was the biggest source of income for the budget as we were buying oil real cheap and selling it at a market price. Then Russia increased exports fees and the margin of profit became smaller.