Any comments?
comments from MPR.......liberal states mouthpiece. How about we drop carbon sequestration because our efforts to date have not made a dent. No effect on price? How about we express path refinery locations in the USA so we have greater refinery capacity and greater flexibility for our pipelines? Why not build more plants? Why not more nuclear in the US? Let the market drive down prices and give consumers the final say in how they want to spend their hard earned money for the products and processes they want to pay for. Minnesota......Ventura country.
comments from MPR.......liberal states mouthpiece. How about we drop carbon sequestration because our efforts to date have not made a dent. No effect on price? How about we express path refinery locations in the USA so we have greater refinery capacity and greater flexibility for our pipelines? Why not build more plants? Why not more nuclear in the US? Let the market drive down prices and give consumers the final say in how they want to spend their hard earned money for the products and processes they want to pay for. Minnesota......Ventura country.
Any comments?
Yes, virtually no drilling has occurred yet, compared to what needs to happen. The oil is there to be had.
There is a lag time, between the commencement of drilling, and the delivery of the first barrel of crude, or the first collection of natural gas. Then, there is the problem of transporting the product, whether by pipeline, that may have to still be built, or by surface transportation, railroad or tank trucks, needing tracks or raodways to the site.
Because the flow of oil did not start with the first turn of the drill rig, the Nellie Negatives point and say, it will be YEARS before this is up and producing.
Which is no argument at all, because we must start NOW to have the supply flowing three to five years out, and if we DON’T get started, where will we be in three to five years?
MPR is just regurtitating a liberal think-tank report that came out a week and a half ago.
When crude oil prices drop for an extended period, certain domestic wells become un-economical to operate and they are capped. And not much new drilling happens under those conditions.
It’s an Egg before the Chicken proposition and not the other way around.
The same study, though, showed that when drilling increased worldwide, it resulted in a lowering of the pump price. We can also see that when a political initiative is launched, such as GW Bush’s proposal to open up all sorts of places to drilling, it can cause the world per barrel price to plummet over the course of six months by more than two thirds. That also resulted in lower pump prices.
A lot of wells get capped here until the OPEC target price gets raised during heavy demand. I think OPEC keeps the price down so they don’t go into production. When prices rise to the point where it is sufficiently profitable for some of the independents to start producing, they bring their wells into production. I saw this capping going on years ago working oil & gas loans in southern banks.
One question is, “How high would prices go if OPEC was not constrained by this contingent supply?” If we did not drill, and had no supply waiting to come to production, OPEC could pick our pockets and devastate our economy with high prices which the economies of developing nations kicked into high gear.
Got to go.
With everything Obama has done to decrease the production of oil on federal lands and in the Gulf and off both coasts, the overall market does not see any future increase in production. The current drilling and production is in spite of Obama’s efforts not because of. Prices dropped when President Bush cut restrictions and encouraged drilling, because that meant more future production. And today we have the continued decline of the dollar in purchasing power, Thus the less value of the dollar, the higher prices go on the international market.
“Any comments?”
Questions:
What is the price of gas in saudi arabia? According to this arguement, it should be the same as in the US.
Why then does every president go begging for saudi arabia to pump more oil every time prices rise?
In 1932, the one ounce of gold would get you 16 BBL of oil. In 2012, that is still true. The COST of producing oil hasn’t changed in all that time, DESPITE the EPA, ethanol regs, egregious fines, etc. All of that is offset by amortizing equipment and doing the PMS on it all.
Monetary policy, and only monetary policy, is what is ‘driving up the price’ of gas.
If the libs at MPR had any guts, what they’d say was, ‘every dollar buys less gas, but the cost of producing that gas hasn’t really changed in 80 years’.
Now, if we DID drill, and we could stop buying crude from overseas suppliers, and if we could pull our excess refining capacity into the gas export market, what would that do for unemployment?
That’s the correct economic question.
The simple truth is this - Unless Jesus is taking over the Federal Reserve, the price of gas is going to keep going up. Blame QE1, QE2, TARP, Fannie/Freddie/Sallie bailouts, etc. Thats too many dollars chasing the same amount of stuff.
If I’m selling lemonade for $1/glass, and you go out and print more $1 bills without changing the amount of lemonade being made, you can’t expect to buy the lemonade at the same price you bought it yesterday, especially when the sugar I bought yesterday for $0.20 per unit just went to $1.00/unit.
These liberals should compare the cost of oil against a known in lieu of the falling American dollar. Forbes had an article recently indexing oil price to gold price. At current pricing levels, we are actually getting a bargain compared to the 42 year average.
Yes. Oil is a globally priced commodity. We can influence pricing but if someone ignores the majority of the items influencing the global supply and demand curves, it is little surprise they don’t recognize the results.