Are there enough reserves between the US, Canada and Mexico that could be developed that could establish and sustain a possible energy cartel for these three countries alone(possibly a few other friendlies could be added)? Thus stabilizing oil prices for these three countries therefore eliminating our vulnerability regarding OPEC. I know there would be far reaching implications due to many factors but the end game could be something. 

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Although it varies, the US imports about 290,000 barrels of crude a month. About 10,000 barrels a day.  That's not much but it could be less.  The majority of imports, about 67%, come from non-OPEC countries.  Unless you are suggesting the nationalization of the US and Canadian refining industries I don't think you can keep them from buying the best product at the cheapest price available.  OPEC doesn't have the influence in the global crude market that they once enjoyed.  They will face increased competition in the future from countries that develop their own unconventional petroleum reserves.  

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm

This should have happened years ago.  But "we" haven't been treating our friends very well lately.

We have everything working in our favor.  I hear... when Congress returns... limited oil exports might be approved.  One phase could include sweet crude exports to Mexico for refining... and an equal amount of their more "sour" oil to the U.S. for refining.  Would be an interesting start to a North American energy alliance.

Over 37.5% of US crude imports come from Canada now.  Mexico can barely produce enough for their own domestic needs and that's why their nationalized O&G industry has been opened to foreign investment recently.  Their E&P technology is mid-20th. century.  NG pipelines to connect Texas production to Mexico end users are on the horizon.  There is no panacea to be had in a North American cartel.  Crude will still be priced on the global market and refiners will buy the best fit crude at the cheapest price regardless of country of origin.

Yes I am imagining a panacea. What if our refiners were mandated to purchase and fulfill North American production at 65-75 per barrel. Thus keeping our domestic E&P companies both large and small in a secure business environment. After keeping us happy let them purchase all they want at what ever prices from who ever.

That is called Socialism.  Good luck achieving that panacea.

I didnt want to say it . just dreaming of a better world.

There isn't a better word.

World not word

LOL!  My typo.  I am afraid both are a dream.

San Antonio energy firm to proceed with U.S.-Mexico pipeline

Aug 12, 2015, 8:54am CDT Updated Aug 12, 2015, 11:23am CDT  .bizjournals.com/sanantonio

Howard Energy Partners and Grupo Clisa will proceed with the development of a new cross-border pipeline that will connect Howard’s existing hub in Webb County, Texas, and the Mexican National Pipeline System in Escobedo, Nuevo Leon.

The two companies will build a 200-mile, 30-inch Nueva Era Pipeline that will have the capacity of transporting 600 million cubic feet of natural gas per day to help fuel combined-cycle power plants near Monterrey. Through this pipeline, U.S. producers will be able to supply natural gas directly to Mexico’s electric power industries.

Mexico’s Comision Federal de Electricidad, the government-owned electric power generation compny will be the initial shipper on the pipeline. It has committed to ship 504 million cubic feet of natural gas per day. However, because of the initial interest so far in the pipeline project, Howard will conduct a second open season on the pipeline to gauge whether there is enough business to warrant expanding the size of the pipeline.

Beginning today and lasting through Sept. 15, Howard Energy is soliciting interest from potential shippers in addition to Mexico's CFE. However, Howard already has a permit from the Federal Energy Regulatory Commission that will allow the pipeline capacity to be expanded from 600 million cubic feet up to 1.12 billion cubic feet per day, if needed. Construction on the pipeline will begin early next year. The pipeline should be completed by June 2017.

San Antonio-based Howard Energy Partners owns and operate natural gas gathering and transporting pipelines and related midstream assets. Grupo Clisa is a Mexican business group with expertise in the importing and marketing of natural gas.

 

Jeff,

The only way I can see something like this happening is a support price or tax on oil that would set the minimum price at $65.00 per barrel. Anything below that price would be taxed at the rate between the then current price and $65. At the current difference in price ($40 and $65) the tax to the Fed would bring in $1 trillion+ per year. That would support the industry with a known price per barrel and provide revenue to the Government. The problem with taxes of this type would be: Is the money being spent wisely?

There is another problem.  The Congress would never pass such a tax.  It would be entertaining to see such a bill introduced just to witness the stammering, obfuscating and indignation from both sides of the isle.

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