It is because oil prices are so high (combined with new technical advances opening up new plays) that so much drilling is going on. It is drawing new investment dollars. Normally, this will eventually drive the price back down.
Now if only the government would just take its boot off the neck of oil production...
The price will eventually come back down, it will just take time. Speculators and all the garbage with Iran will play a heavy toll but supply will NOT be a factor in gas prices going forward.
What do you think are the chances that oil has been inflated and once the bubble bursts many of these drilling and related operators will not have enough ROI to pay for all the equipment in the field now?
It would be world of hurt to see 80’s style storage yards with rig’s, trucks, skids and equipment lined up behind chain link fences waiting for an asset auction while 10’s of thousands of roughnecks are trying to figure out how to get around and look for new work after their “Trans-Am” has been repossessed.
$4 gas without oil imports is better than $3.50 gas that ends up funding Muslim extremists.
You can be assured this administration will do everything within its power (and that which is forbidden by the US Constitution) to keep energy prices as high as possible. NY State is doing their best to help the Marxist in the WH by throwing up as many roadblocks as possible to drilling for natural gas.
How else can they force us into 1 light bulb/ house with a winter thermostat mandated at 55 degrees F and summer at 80? Don’t think they will do that? Ha, wait for it as it is coming.
How else can they resurrect their failed carbon credit exchange? Gore and Soros have to recover the millions they lost in that scam.
Not so much that there is more drilling, but new recovery methods, especially hydraulic “fracking”, which enables recovery of the “tight” petroleum still remaining even in “dry” wells.
It is there, it is only necessary to let the price to rise high enough to make recovery and reclamation economically feasible.
The supply/demand/price curve works with almost immutable force. The only thing distorting it at the moment is the weight of excessive regulation.
Why aren’t we making oil out of organic trash? We already know how, and it has been done on a small scale at a turkey processing plant. And apparently at competitive price.
What can they do with all that oil if we have no new refineries?
Something smells fishy. I know for darn sure that the past three years have not been friendly to domestic oil production. Maybe these increased numbers are because Bush approved their use before they went online?
OPEC has played games before with US oil drilling. By agreeing to cut the prices of their oil, OPEC has turned US booms into busts almost overnight. However, it may be harder for OPEC to do that this time around, because their members need all the money they can get in this suffering world economy. So they will wait to see what increased US supply forces upon them, which probably will not be a whale of a lot until the US can export oil again.
As much as it hurts at the pump, I still actually hope the price doesn’t come down until after the election.
With all the monkey business Soros and his crooked friends played on the oil market running up to the 2004 and 2008 elections, a little turn around is fair play... although, I am sure the crusty old evil man will make billions off the high oil prices and will pour a few millions into getting more of his cronies into office.
His prize was Obama.
“The United States’ rapidly declining crude oil supply has made a stunning about-face”
Pretty Sad when the very first sentence starts out by repeating the BIG LIE. There is more recoverable in California than most of Saudi Arabia, and in the US the amount of recoverable oil is Astronomical. 100% of all Oil Shortages is a result of Government and it started with Jimmy Carter when he created the Dept of Energy to lessen our dependence on foreign oil which at the time was 35% or so, now it is reversed and we only produce 30-35%. Funny how it all coincided with the Saudis throwing out the Brits who by the way Built the Entire Saudi Oil Fields and Infrastructure. The Enemy is our own Government and the Democrat Party as a Whole, with a Majority of Republicans willing to go along with the scam as long as they can make a few bucks in the process..
The number of rigs in U.S. oil fields has more than quadrupled in the past three years to 1,272, according to the Baker Hughes rig count. Including those in natural gas fields, the United States now has more rigs at work than the entire rest of the world.
You can bet this will be a big Obama talking point in the upcoming months.
"It's because of meeee ."
1. The price of oil is based on the international supply, not just our domestic supply.
2. The current rise in the price of oil is due to speculation by financial groups who are trying to corner the market.
Sat, this weekend, Ed Wallace of KLIF radio show, said in his Oil Report, that Wyoming oil is selling on spot market at $60 and that Chicago gasoline is 40 cents lower than long term gas prices due to local glut. These short term gluts in certain market areas are not showing up for the national price of oil.
No thanks to BO.
EPA coming in to shut it all down in 3...2...1...