Why Is Gas So High?

Discussion in 'Energy' started by edthecynic, Dec 5, 2011.

  1. edthecynic
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    edthecynic Censored for Cynicism

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    The US is producing so much gasoline, Big Oil can't sell all of it here. So they are exporting record amounts of gasoline to keep the price here artificially high. So much for the CON$ervative crap about refining capacity being so low jacking up prices because no new refineries were built in 30 years.

    DRILL, BABY, DRILL
    so Big Oil can
    EXPORT, BABY, EXPORT

    Gasoline: The next big U.S. export - Dec. 5, 2011

    NEW YORK (CNNMoney) -- The United States is awash in gasoline. So much so, in fact, that the country is exporting a record amount of it.
    The country exported 430,000 more barrels of gasoline a day than it imported in September, according to the U.S. Energy Information Administration. That is about twice the amount at the start of the year, and experts and industry insiders say the trend is here to stay.

    The United States began exporting gas in late 2008. For decades prior, starting in 1960, the country used all the gas it produced here plus had to import gas from places in Europe.
    But demand for gas has dropped nearly 10% in recent years. It went from a peak of 9.6 million barrels a day in 2007 to 8.8 million barrels today, according to the EIA.
     
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  2. Mr. H.
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    Mr. H. Gold Member Supporting Member

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    Farmers export ethanol.
    BTW there is no "Big Oil" in the lower 48. It's the small guys. You know, like the small farmers.
     
  3. Mr. H.
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    Mr. H. Gold Member Supporting Member

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    I want cheap corn, wheat, oats, etc. but "Big Ag" is exporting grains at a record pace thereby controlling the price we pay for food at the supermarket.

    Get a grip. Crude, natural gas, and refined products is a global market.
    We're part of the globe.
     
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  4. edthecynic
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    edthecynic Censored for Cynicism

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    We are not importing corn from terrorist sponsoring countries to export corn flakes. Notice how CON$ are avoiding their bullshit about lack of refining capacity is driving up prices.

    http://www.igc.int/downloads/gmrsummary/gmrsumme.pdf

    MARKET COMMENTARY

    After showing some strength in early November,
    global grain export prices were again in retreat,
    though with rice once more the exception. Overall,
    IGC’s GOI index fell by 16 points, or 6%, to a 13-
    month low.
     
  5. Mr. H.
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    Mr. H. Gold Member Supporting Member

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    Grain prices aren't retreating fast enough. It doesn't matter that we don't import the same grains we produce. We should keep our grain and our cornflakes here in order to keep prices as cheap as possible.

    This is your logic with respect to crude oil and refined products, isn't it?

    We have adequate refining capacity in this country for meeting the demands for fuels.
    What is exported is a small fraction of what we import.
     
  6. edthecynic
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    edthecynic Censored for Cynicism

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    So, since you admit we have more than ample refining capacity, drilling more oil here will not lower gasoline prices here.
     
  7. waltky
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    waltky Gold Member Supporting Member

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    US Exporting Record Amount Of Gasoline...
    :eek:
    Gasoline: The new big U.S. export
    December 5, 2011: The U.S. still imports more than half its oil. But thanks to declining demand for products made from crude, the country is now supplying the rest of the world with gasoline.
     
    Last edited: Dec 5, 2011
  8. Mr. H.
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    Mr. H. Gold Member Supporting Member

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    I'm just stating a fact. I wouldn't call it "more than ample", but refining capacity is adequate for meeting domestic fuel demads- up to a point. The net importation of gasoline fills that gap.

    But as I said, like ag products so goes petroleum. It's a global market.
    BTW- I take back that "small fraction" comment. We are exporting a considerable amount of gasoline. But as you know we are still a net importer.

    Regarding crude- the focus of drilling isn't to bring down prices. It is to produce the commodity here as opposed to importing. It creates jobs, generates economic activity, and increases revenues to local state and federal treasuries.
     
  9. Mr. H.
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    Mr. H. Gold Member Supporting Member

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    errr... you're repeating what edthecynic already posted.
     
  10. KissMy
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    KissMy Free Breast Exam

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    We are only awash in gasoline because we make so much ethanol that takes the place of gasoline. We also export ethanol, DDG feed & corn. We still have to import oil to make diesel & other petroleum products which makes gasoline an excess byproduct.

    [​IMG]

    If you want to know why prices are high then take an economics class. They will explain why the printing press will not make your country prosper.

    .
     
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    Last edited: Dec 5, 2011

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