Why Is Gas So High?

[edthecynic]

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.

 

[Mr. H.]

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

 

[Mr. H.]

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.

 

[edthecynic]

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.

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.

 

[Mr. H.]

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.

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.

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.

 

[edthecynic]

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.

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.

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.

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

 

[waltky]

US Exporting Record Amount Of Gasoline...

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.

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. The drop was caused partially by the recession but also by the advent of more fuel efficient vehicles, higher prices and the greater use of ethanol as an ingredient in gasoline. Demand for other products made from crude oil like diesel and jet fuel has also declined, although not as much. To be sure, the United States is still importing plenty of oil to make that gasoline -- and is still dependent on foreign countries for well over half the crude it uses.

But now the country's massive refining infrastructure is producing more gasoline, diesel and jet fuel than the United States needs, freeing it up to be exported to places like Brazil, Mexico and Chile where demand is still strong. The Wall Street Journal, which reported on the export trend last week, said the United States is on track this year to be a net exporter of refined products for the first time in 62 years. "We've got plenty of excess refining capacity," said Jonathan Cogan, a spokesman for EIA. "It's a reminder that this is a global oil market, and it's reflected by the movements of products to where they will get the highest prices."

MORE

 

[Mr. H.]

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

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.

 

[Mr. H.]

US Exporting Record Amount Of Gasoline...

errr... you're repeating what edthecynic already posted.

 

[KissMy]

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.

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.

.

 

[richstacy]

Nonsense cynic!! You want to know why gas is so high?? It's not. But it will be. China and India are putting millions of vehicles a year on the road. That will increase the demand exponentially and decrease the supply, Then we'll have high gas prices. Whether you know it or not, they already pay a bundle for the stuff in most of the rest to the world. Generally more than twice what we pay! http://money.cnn.com/2011/03/10/news/international/gas_prices_worldwide/index.htm

If we are exporting so much gasoline, as you claim, then why are we importing more than half our oil, millions of barrels of crude a day from all over the world?? Crude Oil and Total Petroleum Imports Top 15 Countries

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. ...

 

[Mr. H.]

I can understand the confusion w/re: to gasoline exports, and I'm not going to pretend to know all the answers.
But I am aware that it is a compllicated market and that exporting such a product is often necessary in the course of business and industrial practice and the end result is actually beneficial to the consumer.

 

[edthecynic]

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

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.

Refining capacity is obviously more than adequate or we would not be a net exporter of refined oil products, and we ARE net exporters of refined oil products. The more refined oil products Big Oil exports, the higher the price they can charge here.

 

[edthecynic]

I can understand the confusion w/re: to gasoline exports, and I'm not going to pretend to know all the answers.
But I am aware that it is a compllicated market and that exporting such a product is often necessary in the course of business and industrial practice and the end result is actually beneficial to the consumer.

I love it, higher gasoline prices are "beneficial" to the consumer.
CON$ can rationalize anything!

 

[Mr. H.]

I can understand the confusion w/re: to gasoline exports, and I'm not going to pretend to know all the answers.
But I am aware that it is a compllicated market and that exporting such a product is often necessary in the course of business and industrial practice and the end result is actually beneficial to the consumer.

I love it, higher gasoline prices are "beneficial" to the consumer.
CON$ can rationalize anything!

Like I said, it's complicated. Spin it how you want.
Now tell me some more about Big Ag and their cornflakes?

 

[KissMy]

Gasoline at the pump here has been $2.97 all month. That is the lowest in over a year. With our enormous debt & money printing I am shocked that prices haven't skyrocketed. What are you bitching about.

We don't export Diesel Fuel & it is $3.97 at the pump. Do you want to pay a dollar more for gasoline or what?

 

[Mr. H.]

The whole premise of this thread is the perceived contradiction between gasoline exports and retail prices.
Ed made some very ignorant and absurd assertions which were addressed but subsequently ignored.
The OP is an idiot.

 

[KissMy]

It is called market forces. The same reason hamburger prices go way up in a recession & steak prices go down.

 

[edthecynic]

Gasoline at the pump here has been $2.97 all month. That is the lowest in over a year. With our enormous debt & money printing I am shocked that prices haven't skyrocketed. What are you bitching about.

We don't export Diesel Fuel & it is $3.97 at the pump. Do you want to pay a dollar more for gasoline or what?

Yes we do, mostly to Europe and Latin America

Oil Margins Falling as U.S. Fuel Import Era Ends: Energy Markets

Gasoline "has been going pretty much south of the border to Mexico or other parts of Latin America," Ashley Smith, a vice president at Valero, said on a Nov. 1 conference call to discuss the San Antonio-based company's fourfold increase in third-quarter net income. "The diesel has been going split between Europe and Latin America."

 

[KissMy]

Gasoline at the pump here has been $2.97 all month. That is the lowest in over a year. With our enormous debt & money printing I am shocked that prices haven't skyrocketed. What are you bitching about.

We don't export Diesel Fuel & it is $3.97 at the pump. Do you want to pay a dollar more for gasoline or what?

Yes we do, mostly to Europe and Latin America

Oil Margins Falling as U.S. Fuel Import Era Ends: Energy Markets

Gasoline "has been going pretty much south of the border to Mexico or other parts of Latin America," Ashley Smith, a vice president at Valero, said on a Nov. 1 conference call to discuss the San Antonio-based company's fourfold increase in third-quarter net income. "The diesel has been going split between Europe and Latin America."

Maybe in the summer but not in the winter. In the summer we use more Gasoline, so Diesel Fuel is the excess by-product that we have to sell off. In the winter it is the exact opposite.