High Gas Prices: Obama's Half-Truths vs. Reality

[CosmicCowboy]

Understood, and I feel like the 20x's increase in efficiency would be up north, which doesn't mean that we won't receive some increase in efficiency (say 5x??) either way improving the efficacy of solar in the north will bring down the costs for us in the south due to higher adoption rates, economies of scale, etc.

(and imagine what it will do for a country like Germany who is actually being responsible and showing a great commitment to it)

FYI, Germany is ending solar subsidies...

http://www.guardian.co.uk/world/2012/mar/02/germany-cuts-solar-power-subsidies

You can have too much of a good thing, it turns out. The German government has said it has been forced to cut subsidies for solar panels, because demand was so high it could no longer afford to support the green technology.

Friday's announcement has left Germans rushing to install solar panels on buildings ahead of the planned cut in subsidies of up to 30%.

The government has explained its decision as a way of slowing the rapid growth in the sector, saying it was one of Germany's success stories, but had been allowed to grow too fast and had been too heavily subsidised.

"We've already seen a huge reduction in the incentives in the past few years but the incentives were still too high," the environment minister, Norbert Röttgen, said. "Solar is a success story made in Germany. We want it to be an acceptable technology not only in the future but right now but the cost factor has to be at acceptable levels."

Environmentalists, renewable energy experts and industry representatives have expressed incredulity at the 30% cut from 9 March, following earlier cuts of up to 50% over the past three years. They said it was a huge blow for the fledgling industry and a contradiction in terms for a country planning to phase out nuclear power.

"This plan amounts to nothing less than a solar phase-out law," said David Wedepohl, spokesman for the German Solar Industry Association, which represents 800 solar companies. "Under these circumstances there's no way that the transition of the energy industry can be successful. It's also putting tens of thousands of jobs at risk, and it's tough both on investors and on citizens who want to be part of the energy transformation."

Germany is the world's top installer of photovoltaic power, with a capacity of around 25,000 megawatts, almost as much as the rest of the world put together. It added a record 7,500 megawatts in 2011.

The sun provides from 3.2% to – on sunny days at midday– up to 25% of Germany's energy.

Wedepohl admitted: "You could say we are the victims of our own success. The costs of solar energy have come down immensely due to technological development and scaleability so we're scratching our heads and wondering: why stop supporting this now?"

Germany has seen a huge increase in use of solar panels over the last two years, thanks to a subsidy system that utility companies are obliged to pay to people who generate their own solar power, which is then pumped into the grid. Power companies pass on the costs to their customers in their electricity bill. At a time of rising prices the government argues that it has to lessen the financial impact on consumers by decreasing the subsidies.

The solar sector boom has seen everyone from farms to kindergartens making the most of the opportunities to erect solar panels on their roofs. There has even been a trend to form co-operatives and rent space on the roof of public buildings that have installed panels, such as swimming pools or schools. There are now 1.1m such systems in Germany.

The proposed cuts would see the feed in tariff subsidy falling to 19.5 cents per kilowatt hour (kWh) for small plants, and to 13.5 cents for plants of up to 10 megawatts. German retail electricity prices are between 21 and 24 cents per kWh.

The decision must still pass through the cabinet and parliament but political observers believe it is likely to be approved.

On Monday thousands of demonstrators are planning to gather at Berlin's Brandenburg Gate to protest under the banner "Stop the Solar Phase Out".

At a time when solar power is on the verge of costing the same as conventional power, due in large part to the fall in the costs of solar panels and their installation, renewable energy sector representatives have expressed their suspicions that the cuts are an attempt to appease the major energy companies who are losing out greatly to renewables, particularly since the decision last year to phase out nuclear power following the Fukishima disaster in Japan.

"We're taking a part of the market away for large electricity suppliers," said Wedepohl. "But as a country we made a decision after Fukishima to phase out nuclear energy, so we need a lot of power."

[Drachen]

CC, I have seen this before and it seems that their justification is that it is becoming counterproductive as demand is so high that it is causing prices (holistically) to creep back up (and therefore is costing all stakeholders more than it would without the subsidy). They are doing this to deflate this bubble a little. Oh those crazy responsible germans.

3-25%!

[ChumpDumper]

So solar in Germany is a success.

[RandomGuy]

FYI, Germany is ending solar subsidies...

http://www.guardian.co.uk/world/2012/mar/02/germany-cuts-solar-power-subsidies

You can have too much of a good thing, it turns out. The German government has said it has been forced to cut subsidies for solar panels, because demand was so high it could no longer afford to support the green technology.

Friday's announcement has left Germans rushing to install solar panels on buildings ahead of the planned cut in subsidies of up to 30%.



Indeed. The subsidies are no longer really all that necessary, AND appear to have lowered electricity rates.

Funny thing is that the solar has made coal plants MUCH less profitable, through the method by which companies are forced to buy electricity. Have to find that article. Basically solar costs nothing to run, so they can sell "peak power" very very cheaply, directly undercutting other forms of power that require fuels to operate.

[Winehole23]

The exact same argument can be made against solar, wind, and biofuels.

At least be intellectually consistent.Germany is the fly in the ointment. Restate?

[CosmicCowboy]

Germany is the fly in the ointment. Restate?

No need. Solar is still only economically feasible with government subsidies.

Remember, I'm the one looking at installing a system on my home.

[boutons_deux]

API LYING:

Debunking American Petroleum Institute Claims About Oil Issues

http://thinkprogress.org/wp-content/uploads/2012/03/Screen-shot-2012-03-28-at-1.00.37-PM.png

Associated Press Investigation: There is “no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.”

by Daniel J. Weiss, Rebecca Leber, and Jackie Weidman

CLAIM: “More domestic production is critical to putting downward pressure on gasoline prices — supply matters.” – Jack Gerard, American Petroleum Institute President and CEO, March 26, 2012

TRUTH: To test whether more U.S. domestic production would lower gasoline prices, the Associated Press just completed an exhaustive analysis of 36 years of monthly U.S. oil production and gasoline price data. AP found that there is:

“No statistical correlation between how much oil comes out of U.S. wells and the price at the pump. If more domestic oil drilling worked as politicians say, you’d now be paying about $2 a gallon for gasoline. Instead, you’re paying the highest prices ever for March.”

http://thinkprogress.org/romm/2012/03/28/453894/debunking-american-petroleum-institute-claims-about-oil-issues/

[FuzzyLumpkins]

No need. Solar is still only economically feasible with government subsidies.

Remember, I'm the one looking at installing a system on my home.

Lets see how the German market does without them. People buying them like mad causing the government to back off is not indicative of a market without demand.

[boutons_deux]

Some refiners say gas prices not high enough

Posted: 03/31/2012 2:04 AM

Rising gasoline prices have become a source of finger-pointing and political rhetoric — yet the economic reality for some refiners is that the price isn't high enough.

They say that gasoline prices, particularly on the East Coast, have been too low for them to operate successfully. Already, two refineries there have shut down completely as prices for fuel haven't kept up with the surging cost of the raw material, crude oil.

“In an environment like this, where the price of crude oil is rising faster than the price of the product that the refineries make, the profits get squeezed and in some cases they're not profits at all,” said Bill Day, a spokesman for San Antonio-based Valero, the nation's largest refiner.

High world oil prices and declining U.S. demand for gasoline have been a major part of the problem, said Charles Drevna, president of American Fuel & Petrochemical Manufacturers.

The result has been lower domestic gasoline production in regions where refineries rely on imported crude. Oil sold globally is more expensive than crude that is produced and refined in parts of the country with limited access to the world market.

Brent crude, used as a benchmark for world oil, closed Wednesday at $124.16 per barrel, down $1.38. West Texas Intermediate, the U.S. benchmark, closed at $105.41, down $1.92.

On the East Coast, where refiners rely on foreign crude, production dropped from 93 percent of capacity in 2005 to 63 percent in 2011 because of high world oil prices, according to the U.S. Energy Information Administration.

Nationwide, refineries are running at an average of about 82 percent of their fuel-production capacity, according to the agency.

“The reason they are operating that high is because the U.S. is able to export right now,” said Roger Ihne, principal energy portfolio leader for Deloitte. “Without that export, they would be operating at a lower rate and we would be having a significant shakeout of U.S. refiners.”

Much of the refining industry had a rough 2011 as crude prices rose.

Houston's ConocoPhillips closed down its Pennsylvania refinery and put it up for sale. Philadelphia-based Sunoco announced that it was getting out of the refining business altogether.

“They are shutting down because there is too much capacity. They are shutting down because they are not competitive,” Brady said.

Not all refiners are hurting. Midwestern refineries that use lower-priced North American crude can refine it and sell their fuel onto the world market based on the Brent price.

But a limited pipeline network locks much of the cheaper domestic oil in the country's midsection.

“The refiners in the Midwest, they have access to these stranded pockets of crude, so their costs are lower,” Brady said. “On the East Coast, they are not getting that advantage.”

West Coast refineries have similar difficulties getting domestic crude.

Gulf Coast refineries have better access to domestic oil, and ran at 89 percent capacity in 2011, up one percentage point from 2005.

http://mobile.mysa.com/mysa/db_41323/contentdetail.htm?contentguid=6rcjIE8o&full=true#display

========

Drill here drill now is a lie

Too much regulation is a lie

Repugs and oilcos are nothing but lies

[JoeChalupa]

http://graphics8.nytimes.com/images/2012/04/01/magazine/01economy/mag-01economy-t_CA0-popup.jpg

[Wild Cobra]

$4.119 today at one of my regular purchase points, for regular...

[clambake]

$4.119 today at one of my regular purchase points, for regular...

pretty cheap.....if your into regular.

[Blake]

Old, but still interesting I think:


.....Here's why small independent filling stations like Miller's are hurting. He buys his gasoline for $4.04 a gallon from a local distributor and charges $4.09 a gallon. Since credit-card companies charge fees that are a percentage of the dollar transaction value, higher prices at the pump just mean Miller pays more for the service but without anything padding his margins. Miller says the credit-card fees now add up to an average of about 5¢ a gallon at his store. That means, including shipping costs and overhead, he loses money selling gasoline. If not for his three-bay repair garage, he'd be out of business. Stations Run Low on Cash Other service stations with a higher volume of credit-card sales say their fees add up to an average of 10¢ or 12¢ a gallon.

What's worse, says Mike Convey, a gasoline salesman for Tampa-based J.H. Williams Oil, is that most consumers are now paying with credit cards because the price to fill the tank has gotten so high. About four years ago, approximately 25% of the business at his company's 20 or so filling stations was done with credit cards. Now about 75% of their gasoline is sold on credit, pushing up his firm's credit-card costs......

http://finance.yahoo.com/news/pf_article_105256.html

[boutons_deux]

yep, gasoline is commodity with tiny profit at retail, if any. That's why for a couple decades, gas stations have been forced into selling junk food, souvenir crap, coffee, booze, etc.

[RandomGuy]

Looks like the OP didn't want to have a serious discussion on the issue.

[boutons_deux]

Abundant crude supply doesn't push gas prices down

a startling reality: Crude oil supplies in the United States have been at historic highs for two years, while Americans are using less of its most important product - gasoline. The Gulf Coast is particularly glutted with crude, due in part to a pipeline bottleneck. But federal statistics show another recent development: West Coast refineries are decreasing their production as the domestic demand for gasoline shrinks.

So why aren't gasoline prices pushed down by the forces of supply and demand?

The answer, said Newell, is the power of the world market.

"We are tied to the global market, the global price for oil," said Rayola Dougher, senior economic adviser at the American Petroleum Institute. "We cannot secede."

The profitable oil-production industry benefits financially from the fact that it operates within that global market. Fuel conservation in the United States - however laudable - cannot overcome the rising hydrocarbon demand in emerging markets like China and India, explained Newell. The price stays up even where more local market pressures might force it down.

But as commodity speculators and Asian buyers make their daily trades, the prices these days are relentlessly high.

Refineries exporting gas

People are driving less because of the recession and the aging of Baby Boomers, said James Beck, a lead petroleum supply analyst for the Energy Information Administration. Newer cars get better mileage and are replacing gas-guzzlers, and people are using other means of transportation; Amtrak ridership rose 4.5 percent in 2011 to a new high, said Molchanov.

Gulf Coast and West Coast refineries are consequently making more gasoline than they can sell locally. They are exporting it to other countries, notably in Central and South America, in volumes not seen in a half a century

http://mobile.sfgate.com/sfchron/db_41685/contentdetail.htm?contentguid=RQ1ROnCG&full=true#display

I repeat: XL pipeline goes to Beaumont/Port Arthur enterprise zone for tax-free export to central/south America.

"Drill Here, Drill Now" to get cheap gas/energy FOR THE USA is just another Repug/UCA LIE

[FuzzyLumpkins]

Old, but still interesting I think:

I never pay credit. And if I 'have' to I will go to the cash machine.

Fuck banks and charging vendors 3% and the like. Leeches.

[CosmicCowboy]

I never pay credit. And if I 'have' to I will go to the cash machine.

Fuck banks and charging vendors 3% and the like. Leeches.

If you have good credit and pay your card off every month credit cards are freaking awesome. I get at least $1000 cash back every year from my Chase Freedom Visa.

[FuzzyLumpkins]

If you have good credit and pay your card off every month credit cards are freaking awesome. I get at least $1000 cash back every year from my Chase Freedom Visa.

I have good credit but thats not the point I am trying to make. While they give you 1%, they charge vendors upwards of 3% of gross to run it. The vendors do pass on the cost.

Its a leech on the economy as a whole and I refuse to take part in it. I am glad you are basking in your couple percentage points. Typical.

[Winehole23]

"Gasoline for $5 a gallon?" The New York Times wrote in February. "The possibility is hardly far-fetched."


It's still not far-fetched, but odds of seeing $5 gas this summer are dwindling. Oil prices have dropped 9% since February, and the nationwide average cost for a gallon of gas has dipped to $3.71 down from around $3.90 earlier this year, according to the Energy Information Administration. The EIA now expects nationwide gas prices to average $3.79 this summer, down from its old forecast of $3.95 (though the fact that its old forecast was revised shows how fickle these predictions can be). Few are talking about $5 gas anymore. Four bucks might now be a stretch.


The savings that offers U.S. consumers can't be understated. U.S. drivers consume about 344 million gallons of gas a day. If gas prices average $0.25 less this year than originally forecast, the savings adds up to $32 billion, or about $260 per household. That's real money.


Gas prices are still high, of course. If you take average nationwide gasoline prices and adjust them for disposable income per-capita, you get this:
http://g.foolcdn.com/img/editorial/051012GaSP.png
Source: EIA, Federal Reserve, author's calculations.
By this metric, real gas prices are below 2008 levels -- and well below levels seen in the late 1970s -- but still 30% above the long-term average. If gas prices today were what they were in 2000, the average American household would be saving about $2,500 a year.


But even with high gas prices, consumers have been able to keep their spending up without much of a hiccup. Analysts worried earlier this year that a spike in gas prices would cause consumer spending on things like restaurants and travel to drop. By and large, it didn't. Growth in consumer spending was one of the only bright spots in last quarter's GDP report. Retail sales are still growing nicely. Why haven't higher gas prices slowed us down?
http://www.fool.com/investing/general/2012/05/10/so-much-for-4-gas.aspx

[leemajors]

I'm just glad air prices dipped a bit for my trip to Denver in October.

[boutons_deux]

Gulf Refinery Expansion May Not Cut Gas Prices

http://media.npr.org/assets/img/2012/05/31/motiva-port-arthur-refinery-d31-5154-original_wide.jpg?t=1338497722&s=4


In Texas this week there was a grand opening for what is now the largest refinery in the U.S. Shell and Saudi Arabia's national oil company, Saudi Aramco, have more than doubled the capacity of their Port Arthur refinery.

The refinery business has been going through a tough period in recent years. Americans are buying less gasoline and other petroleum products — about 10 percent less than in 2005, according to the U.S. Energy Information Administration.

Refiners' profits have been squeezed between this declining demand and rising prices for the main ingredient in gasoline — oil. Across the country, refineries are shutting down because they're no longer profitable. It's surprising, then, to hear someone in the oil business get excited about a refinery expansion.

"This is the largest manufacturing project ever done in the state of Texas," says Bob Pease, president and CEO of Motiva Enterprises, which is a 50-50 partnership between Shell and Saudi Aramco.

600,000 Barrels A Day

Expanding the refinery took five years and $10 billion. At peak construction, there were more than 14,000 people working on the project. The result: A facility that was refining 280,000 barrels a day can now process 600,000 barrels a day. (About 15 million barrels of oil a day go into U.S. refineries.)

"Besides just capacity increases, the main thing we're getting out of this is considerable flexibility," Pease says.

This facility can refine all kinds of oil, including the heavy crude that Saudi Arabia produces. It also can tap into some of the less expensive oil currently produced in the middle of the U.S. and Canada

At the other end of the refinery, there's also flexibility in where the gasoline is sold. It can end up in U.S. gas tanks, or it can be shipped from the Gulf Coast to wherever in the world it is most profitable to sell.

That ability to export is bad news for U.S. drivers worried about gas prices.

"Don't expect it to have any significant impact on the prices paid for gasoline at the pumps," says Neal Walters, vice president and partner in the energy practice at consulting firm A.T. Kearney.

U.S. A Net Exporter Of Gasoline

In recent years, the U.S. has become a net exporter of finished petroleum products, like gasoline and diesel. This refinery expansion will contribute to that trend.

"It increases the capacity available to export and doesn't have, in the short term, any significant impact on the supply going into the United States," Walters says.

It also continues a trend of smaller, regional refineries shutting down in favor of production from larger, more efficient refineries, like those on the Gulf Coast.

While this refinery expansion may not reduce gasoline prices, oil prices have declined by more than 15 percent in just the past month. Amid economic concerns, traders are worried that oil demand will be lower than they expected. That has sent gasoline prices down nearly 20 cents a gallon this month.


http://www.npr.org/2012/05/31/154085475/gulf-refinery-expansion-may-not-cut-gas-prices?sc=17&f=1001

The main reason XL pipeline is coming all the way to Port Arthur is for exporting to the Americas, NOT for supplying the US market.

If US refiners can export gasoline for more profit than selling to USA, they do, including shipping "drill here drill now" US-sourced gasoline, etc.

[ElNono]

Well, two years later and we have new lows in prices. Barry is still the prez, go figure that one out!

[Agloco]

Can we just credit Bush and the current Congress for the lower prices and be done with it?

[boutons_deux]

Can we just credit Bush and the current Congress for the lower prices and be done with it?
:lol

[TeyshaBlue]

Current and legacy energy policies have a piece of the price drop. Prices are relatively predictable until external stimuli are applied..ie wars, disasters or market manipulation ala current price dumping by the Saudis to counter rising US market share.
The rise in US oil production has the Saudis dancing right now.

[boutons_deux]

The one thing I MIGHT credit St Ronnie with, and it was his people, not his diseased self, was contributing to the collapse of Russia via a hard (dollar) liquidity shortage, with OPEC's necessary, decisive lead, of letting the price of oil drop, OIL AS WEAPON, robbing Russia of $100Bs of hard currency (ruble was not tradeable) they needed to keep screwing themselves in Afghanistan.

Oil as weapon now also hurts Russian protege-Syria and ISIS, as well as hurting US antagonists Russia and Iran.

meanwhile:

Big Oil’s Not-So-Scary Halloween: Industry Leaders Treated to Another Quarter of High Profitshttp://www.americanprogress.org/issues/green/news/2014/10/31/100064/big-oils-not-so-scary-halloween-industry-leaders-treated-to-another-quarter-of-high-profits/

[FuzzyLumpkins]

haven't seen spursncowboys in a long time. Hope he didn't have to go back downrange again.

[TeyshaBlue]

Yeah....been wondering about him too.

[Blake]

I never pay credit. And if I 'have' to I will go to the cash machine.

Fuck banks and charging vendors 3% and the like. Leeches.

I don't either but I use my check card which charges the same fee to the vendor as a credit card. I'd rather do that than pay a cash machine fee.

[spursncowboys]

FuzzyLumpkins TeyshaBlue Hey guys. I appreciate the concern. I got out of the Army this year and moved me and my little ones back to God's country. Hope everyone is doing ok. Have I missed anything? Did DOK hang himself attempting erotic asphyxiation?

[ElNono]

good to have you back

[spursncowboys]

good to have you back :toast
How have you been?

[ElNono]

:toast
How have you been?

Looking at the world around us, can't complain too much, tbh... :lol

[Spurminator]

:toast Welcome back snc

[TeyshaBlue]

Hey...SNC! Good to see ya.

[spursncowboys]

Hi Spurminator and TB. Hope life has been going good.

[Winehole23]

there he is! welcome back, snc.

[RandomGuy]

Hi Spurminator and TB. Hope life has been going good.

Welcome back. Good to see you made out ok.

[spursncowboys]

WH RG: Good to see you guys are still here. :toast

[boutons_deux]

Saudi Arabia and UAE blame oil rout on countries outside Opec

Saudi Arabia and the United Arab Emirates on Sunday blamed the oil price rout on producers outside Opec and reaffirmed their stance to keep output at current levels.

Ali al-Naimi, Saudi Arabia’s oil minister, said he was “100 per cent not pleased” with the near 50 per cent slide in crude oil prices (http://www.ft.com/intl/indepth/living-with-cheaper-oil) since the middle of June, but said it was a lack of non-Opec co-operation that was a key contributor to the sharp decline.

“The kingdom of Saudi Arabia and other countries sought to bring back balance to the market, but the lack of co-operation from other producers outside Opec and the spread of misleading information and speculation led to the continuation of the drop in prices,” he said at an energy conference in Abu Dhabi, according to Reuters. “Let the most efficient producers produce.”

http://www.ft.com/intl/cms/s/0/39472a66-88ee-11e4-ad5b-00144feabdc0.html?siteedition=intl#axzz3MZ0PvBrn

[Winehole23]

friend of mine recently said and I agree:



In March 2012, on the floor of the United States Senate, Mike Lee (R-UT) predicted that if Obama was reelected gas would cost $5.45 per gallon by the start 2015. Lee said that gas prices would rise 5 cents for every month Obama was in office, ultimately reaching $6.60 per gallon.


Lee was not alone. Newt Gingrich, running for the GOP nomination, predicted that if Obama was reelected he would push gas to “$10 a gallon.” Gingrich said he would reduce gas prices dramatically by reversing Obama’s energy policies. Gingrich flanked himself with campaign signs promising $2.50 gas if he was elected.



FYI


A lot of the reasons for the decline in gas prices are well beyond the PotUS control — including weak international demand and OPEC’s failure to reduce supply. But the policies that Lee, Gingrich and others criticized — the failure to approve the Keystone XL pipeline, more EPA regulation and limiting drilling on public land — have not gotten in the way of low gasoline prices.

[boutons_deux]

friend of mine recently said and I agree:

Repugs got nothing but LIES, PROPAGANDA, and FUD. They are NEVER right, and ALWAYS LYING and FUDding their base, which WANTS to be lied to.

"drill here drill now", which has happened/is happening, didn't crater the price of gas/diesel which are tied to the world price, which was cratered by Saudis attacking USA for glutting the market.

My last gas at Costco was $1.799 ( then another "fidelity" -5% annually for a black costco card subscription)

[TeyshaBlue]

Do you even read your rants?
Drill here drill now absolutely factored in the Saudi response.
:lol Holy shit.

[boutons_deux]

Do you even read your rants?
Drill here drill now absolutely factored in the Saudi response.
:lol Holy shit.

dhdn didn't lower the gas price BEFORE the Saudis attacked.

[scott]

Saudi Arabia and UAE blame oil rout on countries outside Opec

Saudi Arabia and the United Arab Emirates on Sunday blamed the oil price rout on producers outside Opec and reaffirmed their stance to keep output at current levels.

Ali al-Naimi, Saudi Arabia’s oil minister, said he was “100 per cent not pleased” with the near 50 per cent slide in crude oil prices (http://www.ft.com/intl/indepth/living-with-cheaper-oil) since the middle of June, but said it was a lack of non-Opec co-operation that was a key contributor to the sharp decline.

“The kingdom of Saudi Arabia and other countries sought to bring back balance to the market, but the lack of co-operation from other producers outside Opec and the spread of misleading information and speculation led to the continuation of the drop in prices,” he said at an energy conference in Abu Dhabi, according to Reuters. “Let the most efficient producers produce.”

http://www.ft.com/intl/cms/s/0/39472a66-88ee-11e4-ad5b-00144feabdc0.html?siteedition=intl#axzz3MZ0PvBrn



LOL, Saudi oil minister with a sweet OPEC recruiting pitch. "It's the fault of all those guys not in our cartel who aren't listening to us!"

[TeyshaBlue]

dhdn didn't lower the gas price BEFORE the Saudis attacked.

:lol goalpost move.

Go see what your masters tell you to say about the Saudis reacting to losing market share to increased US production.

:lol boutons

[Agloco]

:toast
How have you been?

Glad to see that you are well!

[RandomGuy]

Repugs got nothing but LIES, PROPAGANDA, and FUD. They are NEVER right, and ALWAYS LYING and FUDding their base, which WANTS to be lied to.

"drill here drill now", which has happened/is happening, didn't crater the price of gas/diesel which are tied to the world price, which was cratered by Saudis attacking USA for glutting the market.

My last gas at Costco was $1.799 ( then another "fidelity" -5% annually for a black costco card subscription)

(winces)

Not quite. The US becoming a net exporter really did tip the balance in the price point. The Saudis actions do have an affect, but both in conjunction have been causing the shifts.

[boutons_deux]

"The US becoming a net exporter really did tip the balance in the price point."

The US has been forbidden for 40+ years to export crude. BigOil cheats by slightly refining to "de-crude" for export. Likewise, not enough US LNG export terminals to affect the world price.

I expect the Repugs will vote to permit and accelerate export of crude and LNG, stuff we're going to miss when it starts to run out, but BigOil will by then have its profits.

[TeyshaBlue]

(winces)

Not quite. The US becoming a net exporter really did tip the balance in the price point. The Saudis actions do have an affect, but both in conjunction have been causing the shifts.

You're wasting your time.....it doesn't fit his narrative. :lol

[Winehole23]

posters pick on each other all day long, but the iron law of spurstalk is that everyone picks on boutons.

[Winehole23]

ordinarily, the unanimity would pique my skepticism.

[Winehole23]

nah

[boutons_deux]

so you BigOil suckers give us the number for US exports of crude and LNG that have crashed the world price of oil

[TeyshaBlue]

:lol
You still dont get it.
Our oil import is the lowest in 25 years.
"Booming output has reduced the need for crude imports. Foreign barrels account for 43 percent of the oil in U.S. refineries, the lowest level since 1992."
http://mobile.bloomberg.com/news/2015-01-07/oil-exports-from-u-s-jump-34-to-record-as-shale-output-booms.html
We are still the world's largest oil importer....any move we make to reduce imports as dramatically as we have creates the reaction we see from the Saudis today.
Its really not that hard to figure out....of course alternet.borg and the moonbat echo chamber can't be bothered. :lol

[boutons_deux]

My comment was about RG's:

"The US becoming a net exporter..."

Of course, the US is importing less oil, but that wasn't RG's point.

Also helps that not only US demand for oil imports is down, but world-wide oil consumption is also down.

The PRECIPiTOUS drop in world oil price was due to Saudi reaction to the world wide oil glut.

BIG US/UK Oil would have been deliriously happy to keep selling/using $100+/barrel oil.

They them selves did NOTHING to lower the price of oil. It was the Saudi anounced decision and action to keep pumping into a glutted, declining market. BigOil been reluctantly forced, against their profit ojectives, to $50/barrel by the Saudis, not by their own intentions.

Stick you narrative up your ass.

[TeyshaBlue]

:lol simpleton
Its production that matters. This is what underpins the article.
Production, period. You drag your export strawman into a discussion of huge production increases because your are so intellectually dishonest that, like Wild Cobra, you simply can't admit when you are wrong.
Go ahead and hang on to your idiotic worldview of "because republicans". It serves your shallowness.

[boutons_deux]

Crude Oil Inventory Surges to 80-Year High


http://247wallst.com/energy-economy/2015/01/14/crude-oil-inventory-surges-to-80-year-high/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2FRyNm+%2824%2F7+Wall +St.%29

[boutons_deux]

:lol
You still dont get it.
Our oil import is the lowest in 25 years.
"Booming output has reduced the need for crude imports. Foreign barrels account for 43 percent of the oil in U.S. refineries, the lowest level since 1992."
http://mobile.bloomberg.com/news/2015-01-07/oil-exports-from-u-s-jump-34-to-record-as-shale-output-booms.html
We are still the world's largest oil importer....any move we make to reduce imports as dramatically as we have creates the reaction we see from the Saudis today.
Its really not that hard to figure out....of course alternet.borg and the moonbat echo chamber can't be bothered. :lol

Despite declining oil prices, $45 billion Alaska LNG export project moves forward (http://fuelfix.com/blog/2015/01/12/despite-declining-oil-prices-45-billion-alaska-lng-export-project-moves-forward/)


http://fuelfix.com/blog/2015/01/12/despite-declining-oil-prices-45-billion-alaska-lng-export-project-moves-forward/


GOP divided over oil export ban


http://www.politico.com/story/2014/09/oil-export-ban-republicans-111404.html

http://www.astroman.com.pl/img/magazyn/1208/o/EIA_figure_1.jpg

http://www.accuval.net/insights/newsletter/2010-02/_images/oil_chart_2.gif

US importing 2m b/d less in a world market of 80m+ b/d, ie -2.5% reduction in WORLD consumption, hasn't caused the huge drop in the world price.

[TeyshaBlue]

Production.

[TeyshaBlue]

US importing 2m b/d less in a world market of 80m+ b/d, ie -2.5% reduction in WORLD consumption, hasn't caused the huge drop in the world price.

:lol boutons
I never said it was the sole reason. It certainly is a large factor as has been stated by virtually anyone that knows the OG market.

[boutons_deux]

Former Saudi oil boss says it can handle low price


Saudi Arabia can cope with low oil prices for "at least eight years", Saudi Arabia's minister of petroleum's former senior adviser has told the BBC.

Mohammed al-Sabban said the country's policy was to defend its current market share by enduring low prices.

"You need to allow prices to go as low as possible in order to see those marginal producers move out of the market," he said.

Mr al-Sabban advised the ministry for 27 years, leaving last year.

Saudi Arabia, the largest producer within the Opec oil producers' cartel, has repeatedly said that it will not cut output to try to boost the oil price.

Mr al-Sabban said Saudi Arabia's "huge financial reserves" would enable it to cope with the low oil price.

The country is now in the process of cutting government spending.

Without these cuts, Mr al-Sabban said, Saudi Arabia could not cope with low oil prices for more than four years.

http://www.bbc.com/news/business-30876920

[boutons_deux]

Iraq pumps crude at record level amid plummeting prices (http://fuelfix.com/blog/2015/01/19/iraq-pumps-crude-at-record-level-amid-plummeting-prices/)

Iraq is pumping crude at a record pace and will continue to boost exports this year amid a supply glut that’s pushed prices down, Oil Minister Adel Abdul Mahdi said.

“The average for Iraqi crude output is 4 million barrels a day, which is a historical record,” Abdul Mahdi said at a news conference after meeting his Turkish counterpart, Taner Yildiz, in Baghdad. Exports from Iraq will rise to 3.3 million barrels a day this year, boosted by oil from the Kurdish region, Abdul Mahdi said.

The Middle East nation, holder of the world’s fifth-largest crude reserves, is rebuilding its energy industry after decades of wars and economic sanctions. The central government reached an accord last month with the Kurds to allow increased oil exports through Turkey. Oil prices have fallen about 56 percent since June amid a supply surplus on global markets.

Iraq will ship 60 crude cargoes, equivalent to 3.3 million barrels a day, from the Basrah Oil Terminal in the Persian Gulf in February, according to a preliminary loading program obtained by Bloomberg News today. The whole country exported 2.94 million barrels a day in December, the most since the 1980s,

http://fuelfix.com/blog/2015/01/19/iraq-pumps-crude-at-record-level-amid-plummeting-prices/

[boutons_deux]

Crude Oil Inventory Soars by 10 Million Barrels

Read more: Crude Oil Inventory Soars by 10 Million Barrels - 24/7 Wall St. (http://247wallst.com/energy-economy/2015/01/22/crude-oil-inventory-soars-by-10-million-barrels/#ixzz3Pa031R9b) http://247wallst.com/energy-economy/2015/01/22/crude-oil-inventory-soars-by-10-million-barrels/#ixzz3Pa031R9b

[Winehole23]

The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.




For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country's main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week.


If this keeps up, storage tanks could approach their operational limits, known in the industry as "tank tops," by mid-April and send the price of crude — and probably gasoline, too — plummeting.


"The fact of the matter is we are running out of storage capacity in the U.S.," Ed Morse, head of commodities research at Citibank, said at a recent symposium at the Council on Foreign Relations in New York.
Morse has suggested oil could fall all the way to $20 a barrel from the current $50. At that rock-bottom price, oil companies, faced with mounting losses, would stop pumping oil until the glut eased.http://news.yahoo.com/us-running-room-store-oil-price-collapse-next-171025276--finance.html

[boutons_deux]

refinery strike over, let's see if gas goes back well under $2

[TeyshaBlue]

Count on it.

lol "well under".

[TeyshaBlue]

www.wsj.com/articles/BL-MBB-32718

[TeyshaBlue]

www.thenewsstar.com/story/money/2015/03/14/oil-falling-will-gas-prices-follow/24775141/

[TeyshaBlue]

www.cnbc.com/id/102501923

[TeyshaBlue]

The plunge is kicking the holy hell out of royalties tho. :(
That should make the moonbats happy.

[pgardn]

posters pick on each other all day long, but the iron law of spurstalk is that everyone picks on boutons.

Damn.

Nailed.

Its good to know some events have consistency. It's sort of a comfort; if that makes any sense.

[pgardn]

refinery strike over, let's see if gas goes back well under $2

You really don't get how difficult markets can be.
Can you possibly break free and want the truth?
Just take a step back and pile on the variables.
For your own sanity.

[boutons_deux]

You really don't get how difficult markets can be.


you really don't have a fucking clue, nutjob

[boutons_deux]

"tough oil" (expensive $$$ risky) in super deep water, in the Arctic is even more insane now.

[TeyshaBlue]

you really don't have a fucking clue, nutjob
OMFG...the irony. :lmao

[boutons_deux]

OPEC expects U.S. oil production to fall in late 2015 (http://fuelfix.com/blog/2015/03/16/opec-expects-u-s-oil-production-to-fall-in-late-2015/)


OPEC says oil production in the United States may fall by late 2015 as petroleum firms idle hundreds of drilling rigs, with profits squeezed between low crude prices and high-cost shale plays.

Shale-play wells typically see output fall 60 percent annually in production declines that can only be recovered by drilling more wells, the Organization of Petroleum Exporting Countries noted in its monthly report on global oil markets Monday.

Curbed drilling activity could stunt production growth “particularly in regions with unconventional sources in which the oil production break-even point is estimated much higher than current oil prices,” OPEC said, referring to shale plays in the United States and elsewhere.

Oil traders last month boosted crude prices on speculation that the downturn has already taken a toll on oil production, using the Baker Hughes rig count to fuel “expectations of a fall in U.S. tight oil output.”

Even so, OPEC pegs the potential decline in U.S. liquids output at 82,000 barrels a day in the second half of the year, down about half a percentage point to 13.63 million barrels a day by the fourth quarter.

http://fuelfix.com/blog/2015/03/16/opec-expects-u-s-oil-production-to-fall-in-late-2015/