Politicians Must Consider Unintended Consequences

In 2017, America’s oil and gas industry spent $8.5 billion just on the steel pipe used in 11,300 wells to frack shale and drill conventional formations. That same steel would have cost $2 billion more, if these 25% tariffs had been in place, the AOPL explains. Similarly, a ‘typical’ 280-mile pipeline would cost $75 million more, a ‘major’ (Keystone XL) pipeline some $300 million more, under these tariffs.China has already slapped tariffs on US soybeans, and recently signaled that it can add to these oil patch woes bydirectly targeting shale country products, such as petrochemicals and liquefied propane. The Chinese…

Source: Townhall.com, April 7, 2018, Paul Driessen

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