Skip to comments.U.S. oil production reaches historic high As price plummets
Posted on 06/11/2012 8:21:52 PM PDT by jyro
WASHINGTON, June 11 (UPI) -- Federal leases in the Gulf of Mexico, along with output from Texas and North Dakota, pushed U.S. oil production to its highest level in 14 years, the EIA said.
The U.S. Energy Department's Energy Information Administration reports that U.S. oil production during the first quarter of 2012 topped 6 million barrels per day for the first time since 1998.
"The roughly 6 percent growth in U.S. oil production from October 2011 through March 2012 is largely the result of increases in oil output in North Dakota, Texas and the Gulf of Mexico," the agency said in a statement.
The EIA said Texas and North Dakota are the top oil-producing states in the country.
The EIA information follows an effort in the Republican-controlled U.S. House of Representatives to increase access to the National Petroleum Reserve-Alaska and remove federal burdens to onshore oil and gas leases.
Democratic leaders said the effort is in contrast to recent oil production data and trends in the retail energy market.
The EIA indicated U.S. oil production was steady at around 5.5 million bpd for much of 2011
Read more: http://www.upi.com/Business_News/Energy-Resources/2012/06/11/US-oil-production-reaches-historic-high/UPI-54781339419354/#ixzz1xYNVyMj5
Strange as it may seem to purchase oil from afar when so much crude is produced nearby, theres every reason to believe other refineries will soon follow 26,000-barrel-a-day Kern Oil & Refinings lead,
Tesoro Corp. said it was spending $50 million to build new rail loading and unloading facilities at its 120,000 bpd refinery in Anacortes, Wash. The upgrade would allow it to receive up to 30,000 bpd of North Dakota crude up from 1,000 to 2,000 bpd now. (The project aimed to cut Tesoros use of Alaska North Slope crude. In March, construction began and Tesoro ordered about 800 rail cars, which it said can accommodate another 10,000 bpd of Bakken crude.)
“But Gas prices remain the same.”
Or they go up. Here in our part of Ohio we have yo-yo pricing on gasoline. The price goes up and down on a weekly basis, and has no relationship to the price of crude, or to supply and demand (it is often lower on weekends thru Tuesday or Wednesday). We have a Marathon refinery here, and the Marathon stations are sometimes lower. Speedway is a Marathon subsidiary, and Speedway is generally the leader in the upside of the yo-yo. That is my own observations. We are no where near the price of gasoline that $82 a barrel should support.
The other side of the coin, of course, is that super high gasoline pricing can and should be blamed on the O’Bummer and help him be a one term Presidential Usurper.
Here in Texas Gas has gone down like 5c when oil is down $20 a barrel
“They are still very high. Oil prices should be at about $30-40 if drilling was expanded.”
Realistically, $10 a barrel is a fair price on the low side, and maybe $15 a barrel on the high side. And $1 a gallon for gasoline should be max.
Gas is down about 35 cents the last few weeks here in SoCal. Just paid $3.89 for a few gallons today.
Gas price for a gallon in my area has gone from $3.93 to $3.35 in the last two months. Still sucks though.
But this article lies, it actually tries to attribute the production increase to leases granted when they still are at lows in the Gulf after the BP “disaster”.
It’s a typical left wing statistical lie. Kind of like claiming there is a 200% rise in a disease if it goes from one person getting it to three.
I saw $3.23 today in texas
California has a ‘summer blend’. Costs more and gas mileage is less. SUCKS!
It is an election year. Oil prices always drop in an election year.
Summer is just starting in the Northern Hemisphere...demand and prices should be going up—vacations, travel, and manufacturing should be ramping up, and demand should follow. Looks like the economy here, plus the impending collapses in Europe, make for some really dark clouds on the horizon.
It will be interesting to see how far prices drop, and whether and how much that drop may be stimulative.
Nope. With the technology that led to the increase in onshore production and the extra hoops offshore drilling has to go through, the cost of drilling a well has gone up considerably. Figure $10 million from spud to completion for a Bakken horizontal well, and if oil drops below sixty dollars (considered break-even--NO profit), expect only enough drilling to hold leases by production, not full development.
Right now transportation costs have to be factored in as well, considering there still isn't enough pipeline capacity to get the oil to refineries, and that helps keep the price of refined products up as well.
Yeah. When a new full-sized Lincoln costs $6,000 again.
I doubt such propaganda will yield much in the way of tourists recirculating the debt. Highways are relatively very quiet this summer, though not nearly as quiet as they’ll be after the bond collapse. The bond bubble situation is interesting to watch, though, as so much foreign debt is chased into our treasuries with baloney.
Without the big manufacturing base that we’re missing, the artificially, internationally propped dollar is going to eventually slap the economy down hard.
Under Obama we have seen Drilling is the USA almost halted, Oil Production has been reduced to a trickle, Oil prices have done nothing but increase and the American Oil industry Devastated.
$3.78 here in Burlington, VT
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