Yesterday I wrote
an entry about drilling in the Gulf and that it would not lower the U.S. price of gasoline because the gasoline would be exported to the highest bidder. Today, the Star Tribune published an article entitled "U.S. exports a record amount of refined fuels". The article stated that two Department of Energy analysts predicted this last January. See
http://www.latimes.com/business/la-fi-fuel-exports-20111231,0,7622832.story.
The synchronicity is that seemingly similar events happened without mutual causality.
This export market also illustrates a difficult goal - either you have free markets or you have low prices, but not both with "scarce" resources. As we fill our tanks, I'm sure we are not going to be contemplating with joy that this is "efficient" allocation of resources.
