U. S oil production is up. Why are gas prices so high?

[PLC1]

Prices are beginning to come down some, to be sure, but are still pretty high don't you agree?

This article explores the question:

The question is all the more perplexing, because the United States is not only producing more crude oil but also using less of it. As a result, net oil imports have dropped a third since 2005.

Say, what? The US is producing more crude oil? With a Democrat in office? How can that be, when the Republicans were going to drill, baby drill????

And yet, gas still costs nearly four bucks a gallon.

U.S. gas prices are largely determined by global crude oil prices, which depend on a widening and shifting array of factors half a world away: economic sanctions on Iran; deepwater drilling off Brazil; spare oil capacity in Saudi Arabia; auto use in China; less nuclear power in Japan.

Aha, so this is an international issue, isn't it?

and it seems the US is a net exporter of gasoline, diesel and jet fuel. Surprised? I was.

Federal laws do not generally allow crude oil that's produced in the U.S. to be exported but permit the export of refined products that come from it — such as gasoline, diesel and jet fuel. Last year, for the first time since 1949, the U.S. became a net exporter of these products. Most gasoline exports go from Gulf Coast refineries to Latin America, where demand is booming.

According to the article, there are five factors that affect prices:

1. Global crude oil price increases.
2. Iran and other geopolitical uncertainties.
3. Limited spare capacity.
4. Rising worldwide demand.
5. Refinery closures/production costs.

So, based on that information, just what should the energy policy of the US be?

 

[steveox]

Say, what? The US is producing more crude oil? With a Democrat in office? How can that be, when the Republicans were going to drill, baby drill????

And yet, gas still costs nearly four bucks a gallon.

Cause Obama has sic the Feds on Wall Street. Now if youre a stockbroker would you be careful not to set off oil prices or risk being arrested? Now the Feds are very serious now because of the justice dept,,You dont really want to mess with Eric Holder do you? Eric Holder is a manipluative man he will do anything to serve Barrack Obama.

And,,,Its Comming down in Florida. The reason why its high where you live because of your Liberal government. Move to Texas,Florida or Georgia you wont have that problem.

 

[dogtowner]

Prices are beginning to come down some, to be sure, but are still pretty high don't you agree?

yes I agree

This article explores the question:

Say, what? The US is producing more crude oil? With a Democrat in office? How can that be, when the Republicans were going to drill, baby drill????

And yet, gas still costs nearly four bucks a gallon.

more on private lands, yes, and enough more to offset less on public ones. BO can't impact this to his consternation.

Aha, so this is an international issue, isn't it?

well the market is global but we blow our feet off with currency devaluation.

and it seems the US is a net exporter of gasoline, diesel and jet fuel. Surprised? I was.

well at least you know now, this is not news. might be nice if we expanded exports as BO claims to want to do.

According to the article, there are five factors that affect prices:

1. Global crude oil price increases.
2. Iran and other geopolitical uncertainties.
3. Limited spare capacity.
4. Rising worldwide demand.
5. Refinery closures/production costs.

So, based on that information, just what should the energy policy of the US be?

loose the limits of spare capacity (drill baby drill) which will address price increases and demand (directly related) as well. EPA can address #5 easily enough.

convert cars to natural gas, its cheap, mature technology. Ford ought to push this as it will swing marketshare away from GM etal.

pretty much the same thing I've been saying for some time now.
settle the Iran situation asap

 

[PLC1]

Cause Obama has sic the Feds on Wall Street. Now if youre a stockbroker would you be careful not to set off oil prices or risk being arrested? Now the Feds are very serious now because of the justice dept,,You dont really want to mess with Eric Holder do you? Eric Holder is a manipluative man he will do anything to serve Barrack Obama.

And,,,Its Comming down in Florida. The reason why its high where you live because of your Liberal government. Move to Texas,Florida or Georgia you wont have that problem.

It's coming down in California, too. Maybe we've gone redstate.

 

[PLC1]

yes I agree

This article explores the question:





more on private lands, yes, and enough more to offset less on public ones. BO can't impact this to his consternation.



well the market is global but we blow our feet off with currency devaluation.



well at least you know now, this is not news. might be nice if we expanded exports as BO claims to want to do.



loose the limits of spare capacity (drill baby drill) which will address price increases and demand (directly related) as well. EPA can address #5 easily enough.

convert cars to natural gas, its cheap, mature technology. Ford ought to push this as it will swing marketshare away from GM etal.

pretty much the same thing I've been saying for some time now.
settle the Iran situation asap

If increasing domestic production didn't bring down oil prices, why do you think that increasing it further will? Oil is a world market.

The devaluation of the dollar is a scary proposition, given the world market situation. There's where the government needs to focus its attention: The debt.

We don't run more vehicles on NG because there aren't very many refill stations because there aren't too many cars that run on NG. It's a catch 22. How can that one be addressed? Build more NG cars? Build more filling stations? Private capital will build them if there's a profit. I don't think we want government building them.

 

[dogtowner]

If increasing domestic production didn't bring down oil prices, why do you think that increasing it further will? Oil is a world market.

hard to stay ahead when Bernake is making the dollar worth less and less. a game change needs to occur

The devaluation of the dollar is a scary proposition, given the world market situation. There's where the government needs to focus its attention: The debt.

yes it is scary and yes we have been told to address the debt which the administration refuses to do. and as QEIII is looking more and more inevitable expect worse.

We don't run more vehicles on NG because there aren't very many refill stations because there aren't too many cars that run on NG. It's a catch 22. How can that one be addressed? Build more NG cars? Build more filling stations? Private capital will build them if there's a profit. I don't think we want government building them.

no I don't want government building them either so what is preventing private capital from jumping on this ? people would love paying far less for energy so its not question marks regarding profit. so perhaps the regs to move this venture are problematic ?

 

[PLC1]

hard to stay ahead when Bernake is making the dollar worth less and less. a game change needs to occur



yes it is scary and yes we have been told to address the debt which the administration refuses to do. and as QEIII is looking more and more inevitable expect worse.

Maybe Romney will do better, but he's going to have a time of it trying to convince Congress to make any substantial changes don't you think?

no I don't want government building them either so what is preventing private capital from jumping on this ? people would love paying far less for energy so its not question marks regarding profit. so perhaps the regs to move this venture are problematic ?

There's the $64 question: Why doesn't private capital jump on this one? It seems to me to have a pretty good potential for profit.

 

[dogtowner]

Maybe Romney will do better, but he's going to have a time of it trying to convince Congress to make any substantial changes don't you think?

it depends on what happens in Congressional elections of course. I suspect many regs can be addressed but taxes no easy sell without help. but if there is a recovery then currency manipulation is unnecessary.

There's the $64 question: Why doesn't private capital jump on this one? It seems to me to have a pretty good potential for profit.

business has grown accustomed to "incentives". high time to shift this paradigm. neither reward nor penalize, no favorites or demons. there are a lot of petrol stations out there that cannot easily accomodate a very fast turnover and that may be the toughest hurdle so start with fleets that already have their own fueling stations and accept a slower roll. And that new industry of retrofitting will be a real boost to the labor force. and of course construction galore.

 

[Capri]

it depends on what happens in Congressional elections of course. I suspect many regs can be addressed but taxes no easy sell without help. but if there is a recovery then currency manipulation is unnecessary.



business has grown accustomed to "incentives". high time to shift this paradigm. neither reward nor penalize, no favorites or demons. there are a lot of petrol stations out there that cannot easily accomodate a very fast turnover and that may be the toughest hurdle so start with fleets that already have their own fueling stations and accept a slower roll. And that new industry of retrofitting will be a real boost to the labor force. and of course construction galore.

you are right

 

[steveox]

Its now $3.77 Obama wants to be re-electred. The Feds are on Wall Streets ass!

 

[dogtowner]

Its now $3.77 Obama wants to be re-electred. The Feds are on Wall Streets ass!

so maybe if he can get 5-6 million Americans back to work he'll have a shot
and maybe bats will fly out my butt

small drop has to do with recent signs of weakness in Europe and the far east.

 

[the annoying thing]

Prices are beginning to come down some, to be sure, but are still pretty high don't you agree?

This article explores the question:



Say, what? The US is producing more crude oil? With a Democrat in office? How can that be, when the Republicans were going to drill, baby drill????

And yet, gas still costs nearly four bucks a gallon.



Aha, so this is an international issue, isn't it?

and it seems the US is a net exporter of gasoline, diesel and jet fuel. Surprised? I was.



According to the article, there are five factors that affect prices:



So, based on that information, just what should the energy policy of the US be?

Biden policy's gas started going up when he took office along with inflation as his policys hurt production

 

[Starcastle]

Biden policy's gas started going up when he took office along with inflation as his policys hurt production

Actually production has not been that low under Biden because he has no control over 90% of production.

We are back up over 12 million barrels a day.

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

www.eia.gov

 

[Starcastle]

It is fun to continue some of these old threads and see the arguments made back then.

 

[the annoying thing]

Actually production has not been that low under Biden because he has no control over 90% of production.

We are back up over 12 million barrels a day.

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

www.eia.gov

didnt know that I know production was had gone up that much . LOL biden is still crying