CDZ How Did Gas Prices Never Fall Below $2 In most Areas Of The Country After Oil Fell To Negative Prices In 2020?

[skews13]

yEaH bOi YoU gO!!!!

Let's shut down all forms of fossil fuel right now, today, immediately, and switch to cleaner, greener energy!!

We should be able to do that in a couple days if we try real hard.

Apparently you missed the rules for posting in the clean debate room. No flaming is allowed.

 

[Toddsterpatriot]

How Did Gas Prices Never Fall Below $2 In most Areas Of The Country After Oil Fell To Negative Prices In 2020?​

Because prices went negative for about 10 minutes, on the day oil futures expired.

 

[Toddsterpatriot]

So why didn't the President, and Congress act on this at the time?

Act on what? What should they have done?

 

[westwall]

In 2020, the price of oil fell to negative $37.63 a barrel. The economy shut down, and demand at all time lows.

Oil prices went negative a year ago: Here's what traders have learned since

It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have...

www.marketwatch.com

But the price of a gallon of gas still hovered in the $2 a gallon range at $1.93 at it's lowest. Even higher in other areas of the country, and stayed over $2 a gallon for the rest of the year.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Refineries refused to refine oil into gasoline to help the American people.

Too Much Oil: How a Barrel Came to Be Worth Less Than Nothing (Published 2020)

One oil price went negative on Monday, signaling that there is no place to store all the crude the world is producing but not using.

www.nytimes.com

Even with an historic glut of oil, that could have been refined, helping the economy, with historic low gas prices, that could have remained low, by simply continuing to produce as demand started to recover.

We're Barreling Toward An Epic Glut Of Oil

The supply of oil has surged as the coronavirus pandemic has destroyed demand. Prices have plummeted and analysts are starting to ask if the world will have enough space to store all the extra oil.

www.npr.org

So why didn't the President, and Congress act on this at the time?

Because oil didn't drop to that level, it was a futures contract, and the dumbshit who had bought it didn't have the storage for it. He had to dump it at a loss to save something.

Otherwise they would have burned it up and he would have lost everything.

 

[Fort Fun Indiana]

One of the few things we can do to shore up our economy (and national security) against the volatile oil market is to move to other sources of energy. Natural gas is one of those options, but the companies taking it out of the ground still own it all and still sell to the highest bidder, meaning all the same market forces will impact this resource, as well as needing to basically ruin land to let the private companies acquire and sell it. So this is a short term fix.

 

[surada]

In 2020, the price of oil fell to negative $37.63 a barrel. The economy shut down, and demand at all time lows.

Oil prices went negative a year ago: Here's what traders have learned since

It’s been a year since the U.S. benchmark West Texas Intermediate crude futures settled at a negative price for the first time, and while prices have...

www.marketwatch.com

But the price of a gallon of gas still hovered in the $2 a gallon range at $1.93 at it's lowest. Even higher in other areas of the country, and stayed over $2 a gallon for the rest of the year.

U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon)

Refineries refused to refine oil into gasoline to help the American people.

Too Much Oil: How a Barrel Came to Be Worth Less Than Nothing (Published 2020)

One oil price went negative on Monday, signaling that there is no place to store all the crude the world is producing but not using.

www.nytimes.com

Even with an historic glut of oil, that could have been refined, helping the economy, with historic low gas prices, that could have remained low, by simply continuing to produce as demand started to recover.

We're Barreling Toward An Epic Glut Of Oil

The supply of oil has surged as the coronavirus pandemic has destroyed demand. Prices have plummeted and analysts are starting to ask if the world will have enough space to store all the extra oil.

www.npr.org

So why didn't the President, and Congress act on this at the time?

There was little demand for gasoline in 2020.. Storing oil above ground is a losing proposition and drives the prices up.

 

[Toddsterpatriot]

$2 considered the norm with oil at -$37.63? The glut lasted into the new year, and OPEC ramped production, with the intent of bankrupting domestic drillers, which they did.

North America hit record bankruptcy debt across oil and gas sectors in 2020

Low crude prices prompted more than 100 North American oil and gas firms to file for bankruptcy in 2020, with their combined debt more than $100bn.

www.nsenergybusiness.com

This happened under the previous administration, so what you say makes no sense.

The glut lasted into the new year, and OPEC ramped production, with the intent of bankrupting domestic drillers

They were cutting production at that time.
Their attempt to stop fracking by raising production was in 2014.

 

[Toddsterpatriot]

So what was the profit margin at -$37.63?

How many barrels changed hands at -$37.63?

 

[boedicca]

State and Federal taxes make up a significant ratio of the price of Gas:

How High are Gas Taxes in Your State?

California pumps out the highest state gas tax rate of 66.98 cents per gallon, followed by Illinois (59.56 cpg), Pennsylvania (58.7 cpg), and New Jersey (50.7 cpg).

taxfoundation.org

There are also the costs of refining, distribution, marketing:

U.S. gasoline price breakdown by cost 2024 | Statista

Gasoline prices in the U.S. are mostly determined by the price of crude oil. In 2024, crude oil prices accounted for 55 percent of regular gasoline fuel prices.

www.statista.com

 

[surada]

The glut lasted into the new year, and OPEC ramped production, with the intent of bankrupting domestic drillers

They were cutting production at that time.
Their attempt to stop fracking by raising production was in 2014.

Saudi Arabia cut production in 2020.

 

[JGalt]

Apparently you missed the rules for posting in the clean debate room. No flaming is allowed.

Shutting down the use of fossil fuels and trying to convert to renewable sources as fast as possible, is flaming crazy. Do you have any idea what that would do to your economy? How are millions pf people going to get to work? How are they going to heat their homes? How are businesses and industries going to provide you with the necessary things you need to survive?

 

[Fort Fun Indiana]

Shutting down the use of fossil fuels and trying to convert to renewable sources as fast as possible, is flaming crazy.

He didn't suggest just stopping use of fossil fuels abruptly. Nobody suggests that. That is a little dolly you invented for yourself to play with, because you have no response for the points people are actually making.

 

[RoshawnMarkwees]

The glut lasted into the new year, and OPEC ramped production, with the intent of bankrupting domestic drillers

They were cutting production at that time.
Their attempt to stop fracking by raising production was in 2014.

And that effort dropped prices below $2 until an equilibrium was met and the price stayed consistently lower than the Obama pre-fracking squeeze-down.
Fracking saved our economy in spite of Obama. Further restriction-lifting by trump created an energy independence. Any impact opec and Russia had by opening spigots was short lived and mostly superficial.
Obama’s — Biden’s — latest squeeze-down has driven prices back up and given opec a leverage it hadn’t had since pre-trump.

 

[RoshawnMarkwees]

Shutting down the use of fossil fuels and trying to convert to renewable sources as fast as possible, is flaming crazy. Do you have any idea what that would do to your economy? How are millions pf people going to get to work? How are they going to heart their homes? How are businesses and industries going to provide you with the necessary things you need to survive?

It’s not as crazy as it is a strategy to squeeze the economy and create more gov dependence. It’s all about controlling the people through the economy.

 

[Fort Fun Indiana]

It’s not as crazy as it is a strategy to squeeze the economy and create more gov dependence. It’s all about controlling the people through the economy.

Paranoid, embarrassing fantasy.

 

[Dayton3]

Because at the pump gasoline prices are NOT just based on crude oil prices.

 

[Oddball]

Apparently you missed the rules for posting in the clean debate room. No flaming is allowed.

Mocking your childlike naivete isn't flaming.

 

[Oddball]

And that effort dropped prices below $2 until an equilibrium was met and the price stayed consistently lower than the Obama pre-fracking squeeze-down.
Fracking saved our economy in spite of Obama. Further restriction-lifting by trump created an energy independence. Any impact opec and Russia had by opening spigots was short lived and mostly superficial.
Obama’s — Biden’s — latest squeeze-down has driven prices back up and given opec a leverage it hadn’t had since pre-trump.

Xiden immediately cutting 32 million barrels a day out of the flow certainly helped to push prices up.

 

[JGalt]

It’s not as crazy as it is a strategy to squeeze the economy and create more gov dependence. It’s all about controlling the people through the economy.

Destroying an economy and causing a SHTF total breakdown of society won't create more government dependence, if the government ceases to exist. Three days without our current forms of energy, and that's what we would have.

 

[RoshawnMarkwees]

Because at the pump gasoline prices are NOT just based on crude oil prices.

That’s right. Cut off supply lines (like pipelines) and you have price increases.