This article originally appeared on the Dogwood Initiative website.
“Oil to tidewater.”
It’s an industry mantra happily adopted by politicians — and even some environmentalists. But ask yourself this: what happens when you pump more product into an oversupplied market? Answer: the price goes down.
Who benefits from cheaper crude oil? First, the customers — like China’s state-run heavy oil refineries. And later, competitors with lower overhead, like Saudi Arabia.
You’ve probably heard these twin arguments before: