THE GUARDIAN learned via the Wall Street Journal today the USA will be a net fuel exporter this year for the first time in 62 years. The US sent abroad 753.4 million barrels from gasoline to jet fuel and everything else you can burn for fuel while it imported 689.4 million barrels of fuel stocks.
The US is currently exporting 919,000 barrels of oil per day. Gasoline and low sulfur diesel are the highest items for export customers. The increases in supply are from North Dakota and Texas. North Dakota is producing 424,000 barrels per day. The US is expected to remain a net exporter throughout this decade.
Growing domestic output means refineries are producing much more than domestic demand can absorb hence sales to other countries like Mexico, Argentina, Brazil, Peru and others. Export demand is boosting profits for Exxon-Mobil, Royal Dutch-Shell and refineries Valero Energy Corporation and Marathon Petroleum Corporation.
Here is the link to the Wall Street Journal article, you have to be a subscriber to read all of it, http://online.wsj.com/article/SB10001424052970203441704577068670488306242.html
Here's another link to SLATE and you can read more... http://www.slate.com/blogs/moneybox/2011/11/30/america_is_still_a_giant_oil_importer.html
Huh? Go Figure. Big Oil used the excuse of gas prices being so high because they weren't allowed to drill as much here in the US and all the oil had to be imported and OPEC was driving their prices. So now we have allowed them to drill, and we are producing more than we can consume. But Ironically, We still have sky high gas prices. Time for the Feds to step in and regulate gas prices since big oil won't be happy until already strapped Americans are squeezed of every last penny they have to put fuel in their cars. I am thoroughly disgusted. I will no longer be voting so conservatively anymore. Whichever politician says hew wants to stick it to big oil will have my vote. Fool me once shame on you, fool me twice shame on me Exxon. You will get no pity from me.
ReplyDeleteWe have been told for years that it is a simple case of supply and demand. Now there is THIS! It turns out the American Consumer can't win in this deal. The only upside is we don't have the lines we had in the late 1970's.
ReplyDeleteBetween the Bankers, Wall Street, Big Oil and the Housing Collapse along with high unemployment what is left for these creeps to take from American Consumers?
It is a situation which has gone almost unnoticed but the big boys are switching the import terminals to export terminals. We really do have the Saudi Arabia of oil in the Baakans and fracking has changed the Natural Gas equation for the next hundred years. Now if we could just get infrastructure and CNG powered automobiles on the road think of the jobs created. Mfg. new service stations, mechanics.
ReplyDeleteRaul Labrador has a bill in Congress doing away with subsidies for all forms of energy. He deserves your support
It seems to me the law of supply and demand works 2 ways. The suppliers are entitiled to the highest price that the consumers are willing to pay. If the demand went down the price would also. If people would pay $10 a gallon for gas thats exactly what it should be. Economics 101 the true value of something is established by what one party will sell an item for and what someone else will pay for it.If you don't like the price the oil companys charge go drill your own well and build a refinery.
ReplyDeleteAccording to the Slate article, the exported "petroleum products" that everyone is so giddy about DO NOT come out of holes in the ground. The US is still importing well over 50% of that stuff. From some of the above comments it would seem a little spectacle cleaning or use could be in order. Good news IS good news but the new holes in ND and TX to date have not solved our energy problem but certainly show the path to solutions.
ReplyDeleteWell Bob, your theory certainly should hold true in a world where one has choices and companies have to compete against each other. But in this world, most of us have no choice other than choose not to drive. In a world where you have to have transportation to get to and from work with very little in the way of public transportation, Big Oil has a monopoly and there is very little in the way of "Competition". See that's what organizations like OPEC are. a conglomeration of Arabic oil Producing Countries that limit production and fix prices, kind of like what DeBeer's did with diamonds.
ReplyDeleteRaising prices just because we will have to pay it or else sacrifice your job is just plain rotten. Maybe American Farmers should band together and create scarcity and quadruple the price of food just because they can.
Would you pay those prices Bob? Maybe you would plant a vegetable garden and raise your own chickens, beef and pork.
Don't have the time for that you say because you have to work?
In virtually every state there is a PUC to regulate prices of natural gas, electricity, water, (when owned by a private company. Yet BIG OIL is at best and oligarchy with limited players, no price regulations and on to make it even sweeter they get subsidized by by the federal government with our tax dollars.
ReplyDeleteThere is a glut of oil worldwide yet prices remain high. You have to think something is going on that is not quite right.
Hey I have a great idea. Instead of "If you don't like the price the oil companys charge go drill your own well and build a refinery." how about "let's elect politicians who are very unfriendly to big oil companies who can make their rich industrialist tycoon lifestyles very uncomfortable" since they can't seem to put a reasonable cap on their own greed. We the people are tired of getting screwed at the pumps.
ReplyDeleteWhy does big oil get subsidies given the huge profits they make?
ReplyDeleteWe have abundant natural gas but big oil controls most of the supply. The short answer is they are making a bundle on crude oil products. Don't think for a minute they care about customers.
Reply to anonymous
ReplyDeleteIt seems to me you have choices if you don't like the price of gasoline you could walk, ride a bike or maybe ride the bus. Your attitude is a prime example of someone who wants a service or a convenience provided to them but doesn't want to pay what the market says it's worth. If people weren't willing to pay the asking price the price would come down. The big bad oil companies invest billions of dollars before they see any return and sometimes they lose huge sums of money. Stop and think a minute,for #3.50 to $4 you can move several thousand pounds of vehicle,people and cargo 15 to 30 miles.Seems like a heck of a deal to me. The state and federal goverments make more on a gallon of gas in taxes than the company that finds the oil extracts it refines it and transports it to the station and sells it. The bottom line is like any business if the oil companies don't receive what they feel they need to for their product they won't make the investment it takes to provide it and less will be availiable .
Ohhh so now I should sell the house I could afford in Caldwell and move to Boise where I have a job but cant afford a home. That makes perfect sense. Also biking or walking 40 miles to work makes sense too. Overcharging because you can is wrong no ,atter how you slice it Bob.
ReplyDeleteBob's attitude is exactly why we have an energy crisis, a healthcare crisis, and a wallstreet crisis. If we follow this logic to it's logical conclusion, open heart surgeons should charge whatever they want. What do you need a house for, after all you got your health, right? If you want to live you will pay it. This all stems for the 80's mentality that greed is good. I agree with Anonymous. The Oil companies are taking advantage of us and it's time we showed them they cant rape the land, get rich off it and have the consumer pay for the consequences too.
ReplyDeleteReply to Anonomous and QuirkyOldMan
ReplyDeleteYes if you cannot afford the lifestyle you have created you should should sell your house and move closer to work or change jobs and yes someone should receive what their goods and services are worth as determined by market forces. Doctors spend many years and a huge sum of money to get the training they need , I'm sure you could find somewhere cheaper to get the surgery done such as a 3rd world country perhaps you might want to look in to their services. The evil oil companies also invest huge sums of money to provide their product.
I find the attitude that everything wrong in someones life that they don't like is someone elses fault and not caused by their own choices or unwillingness to do what is necesscary to provide for themselves to be one of the major problems in our country.Instead of whineing how bad you have it try improving your skills so that you can command a higher salery or can qaulify for a better job. Rather than blame someone else for your percived problems.
Sorry Bob,
ReplyDeleteBut my Bachelors degree used to command a pretty good salary, but since the crash I'm lucky to hold onto what I got. I'm not some slacker which you seem to think everyone but you is freeloading off the system. I have never taken a day of unemployment or welfare for that matter. There is a lot wrong in this world and unfortunately that includes our so called free market economy. Wall street and the market aren't always right you know. After all it was the ultra rich in this country who knowingly pushed the loan industry over the edge all the while insuring themselves knowing it would fail. Purposefully causing an industry to fail all in the name of greed. How many lives were destroyed in the process? It will take many years to come before we know the true impact of those sleazeballs actions. These people should be jailed for what they did. I don't know what I did to deserve losing my job Bob other than existing, but you seem to know it all. Tell me, What did I do wrong? Why is it that because wall street screwed up and I was laid off and was forced to settle for two jobs that pay significantly less how that's my fault? What did anyone do to deserve this massive streak of unemployment Bob? You ever stop to think that you go where the work is Bob?
I watched 60 MINUTES last night and am absolutely furious there have been zero prosecutions for banking fraud with the banking mess. Country Wide and Citi were two of the banks in the 60 Minutes piece. Insiders in the fraud departments of these banks were raising flags, letters and emails to upper management about the fraud and it got them fired. Add to this Sarbanes Oxley a piece of legislation that calls for jail time for CEO's has not been used in any prosecutions. Thousands and thousands of crooks are going to get off scott free in what nearly brought the country down. They violated a fiduciary responsibility to stock and bond holders and got away with it. So much for the free market...how about ROBBER-BARRONS as a new name for what is going on in this country.
ReplyDeleteFree Market could not get any freer or greedy. White collar crime prosecution in this country is a joke. check out
ReplyDeletehttp://www.cbsnews.com/8301-18560_162-57336042/prosecuting-wall-street/?tag=pop;stories
The segment on the Wall Street banking debacle. Billions of taxpayer money taken via fraud, internal neglect of standards and violations of fiduciary responsibility to stock holders of big banks. Sarbanes-Oxley laws ignored by CEO's and not a single prosecution? This is an outrage none of these people are behind bars and they remain in their jobs collecting big fat bonuses. Hurray for 60 Minutes for exposing this bull sh!t.
One last reply to Annonomous
ReplyDeleteThe operative phrase in your first line is that your degree used to command a good salary. I do not know what your degree is in but if it is no longer in demand it would help if you got further education and broadened your skills. Since high school I have had 14 major jobs and several short time jobs doing several things. Just because someone has a degree does not gaurante them employment. You have 2 choices, do what it takes to change your situation or continue like you are. I will close with a line from one of my favorite movies The Shawshank Redention. Get busy living or get busy dieing. It's up to you.
Keep an eye on the "Occupy" movement. It is growing. Middle class America is getting fed up with the corporate greed and profit mentality of the rich and lucky. The middle class working people will prevail in our community and in our country. Just give it time.
ReplyDeleteHi
ReplyDeleteI read this post 2 times. It is very useful.
Pls try to keep posting.
Let me show other source that may be good for community.
Source: Valero Energy interview questions
Best regards
Jonathan.