Why do U.S. producers have to raise gas prices?

[Missouri_Mike]

This is why the oil companies should be nationalized. Those are our resources, yours and mine, not Exxon/mobil's

Sure worked out in Venezuela.

 

[egp320i]

It's not necessary. If we are "energy independent" why not prove it?

As it was mentioned it's global, not X country producing the the world supply

barrel price factors too, cost more to buy and refine they don't absorb the cost, you do

 

[egp320i]

Sure worked out in Venezuela.

This is why the oil companies should be nationalized. Those are our resources, yours and mine, not Exxon/mobil's

how much oil is your rig producing right now? none

WE don't drill, pump, haul any oil

oil companies do

they also pay big $$$$ to lease the land, you know mineral rights

You should watch landman, great show and you can learn plenty, I did

 

[Missouri_Mike]

how much oil is our rig producing right now? none

WE don't drill, pump, haul any oil

oil companies do

they also pay big $$$$ to lease the land, you know mineral rights

You should watch landman, great show and you can learn plenty, I did

The government can’t produce anything but poverty. You look at those morons and they can’t run anything profitable. Thats why Venezuela failed. Same thing would happen here.

 

[Admiral Rockwell Tory]

It's not necessary. If we are "energy independent" why not prove it?

You guys need to start reading more carefully. This has been explained about a hundred times over the last few decades on this forum.

 

[Woodznutz]

We are in producing it, semi-independent in refining it, not independent in setting its price because we have a complex relationship with OPEC, our oil industry being privately owned vs theirs being state owned.

So yes, we are independent in the sense that we can produce enough oil to meet our own needs without needing to buy from others, but that does not mean we are free to set any price.

It's pure greed.

 

[berg80]

Sounds like greed to me.

It's capitalism.

 

[LordBrownTrout]

Over 25% of production is on Federal land, and states also lease land.

Offshore production is mainly federal. Permian, bakken, eagleford, niobrara, dj basin is all private.

 

[jc456]

The market it a global market.

Why would energy producers here, not sell to the rest of the world if prices are higher overseas?

. . so the price overseas is reflected in prices at home raising them here.

that's exactly what Trump is trying to set up. He took out Madura to increase the oil demand from this side of the globe rather than the strait.

 

[jc456]

It's capitalism.

so the globe is capitalist now?

 

[luiza]

It's not necessary. If we are "energy independent" why not prove it?

But the nation is bankrupt multiplied by 100 .

Do you really expect the last year of “free money “to be handed out to The Munchers ?

This is not Fairy Land .

 

[EdwinAMartin]

Offshore production is mainly federal. Permian, bakken, eagleford, niobrara, dj basin is all private.

The Feds don't own a lot of land in Texas, except that granted for parks, highways, military bases, etc. The state owns a lot of land, especially in West and South Texas, which is mostly desert and few wanted it. Texas homestead grants were like 2,500 acres, compared to Federal grant of 160 acres, for instance. We didn't join the Union until late, and we were never a US territory before becoming a state, hence the Feds not being a big landowner here.. The University of Texas is a huge landowner. The State of Texas is a huge landowner. The counties own a lot of empty land, the towns and cities as well. I'm getting royalty checks for the lot my house in sitting on, just because int's in city limits, as well as on 20 acres behind the house and along a creek. The city also receives royalties for the drilling on city land.

 

[EdwinAMartin]

The Feds don't own a lot of land in Texas, except that granted for parks, highways, military bases, etc. The state owns a lot of land, especially in West and South Texas, which is mostly desert and few wanted it. Texas homestead grants were like 2,500 acres, compared to Federal grant of 160 acres, for instance. We didn't join the Union until late, and we were never a US territory before becoming a state, hence the Feds not being a big landowner here.. The University of Texas is a huge landowner. The State of Texas is a huge landowner. The counties own a lot of empty land, the towns and cities as well. I'm getting royalty checks for the lot my house in sitting on, just because int's in city limits, as well as on 20 acres behind the house and along a creek. The city also receives royalties for the drilling on city land.

I forgot to add that while most of the land is 'private', the State of Texas retained the mineral rights to over 13,000,000 acres in West Texas.

 

[Woodznutz]

This is not Fairy Land .

People seem to think there's a big money tree here and they get to pick from it at will.

 

[Woodznutz]

But the nation is bankrupt multiplied by 100 .

We're not bankrupt, yet.

 

[WEATHER53]

It's not necessary. If we are "energy independent" why not prove it?

I agree and that 20% of oil that goes through there never reaches the USA.

 

[luiza]

We're not bankrupt, yet.

You are so bankrupt that Bankruptcy has taken on a new meaning .
Even your Government admits to nearly $40 trillion debt which with Obligations is likely in excess of a total of $200 trillion .
As your up - front Debt interest is too much to repay , arguing your overall status is just plain stupid .
The fact that the specific term has not been officially admitted is just fools being liars .

You are not just bankrupt , but so pot-less that you actually have absolutely nothing to even piss in .

 

[task0778]

Repeated investigations by the Federal Trade Commission have found that changes in gasoline prices are driven by market conditions rather than illegal price manipulation.

How Gasoline Prices Are Determined

What determines gasoline prices? Explore how crude oil prices, refining, distribution costs and taxes influence what drivers pay at the pump.

www.api.org

So, what market conditions are involved here? I think it basically comes down to supply and demand. First, let's realize that oil is a global commodity, which means many US oil companies are global rather than national. And they have foreign and domestic contracts that must be honored for whatever and whenever market changes occur. Those contracts are not fixed, but dynamic relative to the changes in oil prices. Think about it - when the price of oil is low, oil companies are going to require a relative contractual price escalation if supply drops and the price of oil goes up. Why? Cuz when the price goes up then demand generally goes down, and if you don't raise your prices then your supply is reduced to the point where you can't keep up with demand.

Say a global oil company like Exxon raises their domestic gas prices from $3 to $4/gal. If a domestic gas company doesn't follow suit then their supply is going to be significantly reduced to the point when oil prices come back down they don't have the gas reserves to remain at $3/gal. Exxon is going to do just fine selling less gas at $4, and they'll have plenty of gas left to sell when the price drops back down. The domestic company didn't raise their price to $4 but they did sell more gas at $3 than before, but then they don't have the supply to sell when the price drops. IOW, it's a supply issue, depending on how long the price stays at $4 or even goes higher, they could be hurting their profit margin if they eventually experience supply deficiencies.

 

[EdwinAMartin]

Repeated investigations by the Federal Trade Commission have found that changes in gasoline prices are driven by market conditions rather than illegal price manipulation.

How Gasoline Prices Are Determined

What determines gasoline prices? Explore how crude oil prices, refining, distribution costs and taxes influence what drivers pay at the pump.

www.api.org

So, what market conditions are involved here? I think it basically comes down to supply and demand. First, let's realize that oil is a global commodity, which means many US oil companies are global rather than national. And they have foreign and domestic contracts that must be honored for whatever and whenever market changes occur. Those contracts are not fixed, but dynamic relative to the changes in oil prices. Think about it - when the price of oil is low, oil companies are going to require a relative contractual price escalation if supply drops and the price of oil goes up. Why? Cuz when the price goes up then demand generally goes down, and if you don't raise your prices then your supply is reduced to the point where you can't keep up with demand.

Say a global oil company like Exxon raises their domestic gas prices from $3 to $4/gal. If a domestic gas company doesn't follow suit then their supply is going to be significantly reduced to the point when oil prices come back down they don't have the gas reserves to remain at $3/gal. Exxon is going to do just fine selling less gas at $4, and they'll have plenty of gas left to sell when the price drops back down. The domestic company didn't raise their price to $4 but they did sell more gas at $3 than before, but then they don't have the supply to sell when the price drops. IOW, it's a supply issue, depending on how long the price stays at $4 or even goes higher, they could be hurting their profit margin if they eventually experience supply deficiencies.

We've been controlling exports and imports of oil for decades. There is simply no legitimate reason for the US to be paying higher prices, any more than it has to pay the same price for any other commodity we produce domestically.'Global demand' is just a bullshit excuse.

 

[BlindBoo]

It's not necessary. If we are "energy independent" why not prove it?

The nub of it is, we don't drive LNG vehicles. We drive mostly on gasoline. Gasoline comes from oil. We are still oil dependent.

In other words our 'energy independence' is still only on paper.

Total Net Imports of Crude Oil and Petroleum Products into the U.S.