Posted on 06/13/2013 11:44:18 AM PDT by ckilmer
U.S. crude-oil production grew by more than one million barrels a day last year, the largest increase in the world and the largest in U.S. history.
(Excerpt) Read more at online.wsj.com ...
All thanks to Obama and his policies...
ROTF LMBO
We have a lot more to come but are prevented by obama
Fracking works. The greenies who want to everyone to sit in the dark and freeze hate it.
Someone needs to explain to me why our prices keep going up if production has increased.
I think it has something to due with the fact that a new refinery hasn’t been built in the US in 40 years.
without a refinery, oil is not good for much.
add to that ever increasing taxes, and demands for special blends from lefty states and you have your answer.
Indeed, don't be surprised that Russia--as part of a permament treaty with Japan--will allow Japan to take back the closest four islands to Japan of the Kuril Islands chain in return for Russia supplying oil and natural gas via pipeline to Japan through Sakhalin Island north of Hokkaido.
Getting it out of the ground is one thing. Getting it to a pipeline or refinery is another. Shortages of trucks, drivers, pipeline stations, all keep finished products running slow.
Yet when they travel it is by car, bus, train or plane, none of them travel by horse or walk.
I’ll know it when I see a dramatic drop of gas prices at the pump.
LOL, I hear ya.
True. The Russians have the biggest shale deposits on earth out in siberia. But —like the Chinese — they don’t know how to frack just yet. Both Russian & Chinese companies are invested in US fracking for the purposes of technology transfer. So it’ll be another 5-10 years before they get oil out of their shale deposits in volume.
Here’s the problem. Its a very tricky one.
I’m reading that Baaken oil costs $80@ barrel to get out of the ground. That’s expensive. I’m also reading that siberian oil will cost $90@ barrel to get out of the ground. that’s even more expensive.
If the USA keeps adding 1 million barrels a day—more— worth of the production every year for the next couple years —likely the price of oil is going to dip below $80@ barrel.
This will make baaken oil unprofitable and siberian oil impossible to drill profitably. (In the baaken —that means that they won’t do more drilling until the price rises. But production will continue on already drilled wells. Now there are uncertainties here because of decline rates, the ability of oil companies to drill in lower costs places like the permian basin and finally—the cost of production —especially in the Baaken—will likely fall in the next couple years.)
That’s probably why the russians would like to lock in the japanese at $100@ barrel if they could.
Its a shame the USA could not extract some kind of quid pro quo from the Chinese by which the USA gave the Chinese fracking technology in return for them making peace with their neighbors over south china sea claims and various other border issues.
I think it has something to due with the fact that a new refinery hasn’t been built in the US in 40 years.
.................
I have puzzled over that for a long time — until I learned that what the refining companies have done for the last 40 years—is simply add to the capacity of existing refineries.
Someone needs to explain to me why our prices keep going up if production has increased.
..........
prices will likely fall but not today or tomorrow. Right now the rise in US production has helped to offset the fall in production in other countries around the world plus the increase in demand from china and India...so oil supply and demand are tightly balanced.
If the world goes into a recession in this Fall (causing a worldwide shrinkage of demand)—then oil & gas prices at the pump will fall this year.
If not then it will likely be another 2 years before production passes demand. (I’m in the camp that believes the US will experience steady but unexceptional growth for the next couple years—unless the Supreme court declares obamacare unconstitutional. If that happens — then the US economy will return to (high for the USA)4%-5% growth rates
—& higher US demand for oil.
As it is US West Texas Intermediate oil is about 10 dollars cheaper than world prices or Brent Crude.
Pity the oil planners because there are a lot of variables to consider.
All thanks to Obama and his policies...
We have a lot more to come but are prevented by obama
I’ll know it when I see a dramatic drop of gas prices at the pump.
.............
Whoever won the presidential election of 2012 was going to gather the reflected glory of the fracking revolution. Romney would have pushed things along a little. Obama is doing everything he can to stifle the fracking revolution. But it is happening despite him so fracking will make Obama look good no matter what he does or does not do.
What I really hate is that the big payoff for fracking in terms of the price of oil will likely come in 2015 and 2016 — just in time for the 2016 presidential elections.
You’re probably right. Hopefully we can tie Obama’s objection to everything that accounted for this increase in energy.
Two of our top five foreign sources.
They are counting on public transportation to take them.
It is free you know.
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