U.S. Oil Production Keeps Rising Beyond the Forecasts

Thank you both for that detailed explanation and for coming to my defense.

I was wondering what happens when everyone in the world starts utilizing our current fracking and horizontal drilling practices, and the global market is awash in all kinds of crude.

I was wondering what happens when everyone in the world starts utilizing our current fracking and horizontal drilling practices, and the global market is awash in all kinds of crude.

For sake of discussion, what will happen is that crude prices will drop to around $75, below which most tight oil & gas E&P doesn't pay.

No, I'm not...and that's twice you've insulted me bitch.

I am sorry you feel insulted by my words. What actions I thought you were suggesting seemed to fit that. Perhaps I misunderstand what you are suggesting actually be done to correct the problem you see. If you could explain what specific actions you suggest taking, we could have a more reasoned discussion.

If OPEC can hold back production to drive up the global price of crude, why can't we do the same with fuel?

Now I am confused even more. I thought you wanted to lower prices, not raise them.

US consumers have been unwillingly "investing" since 2008 and guess who's been reaping the rewards....go ahead, we're waiting.

I greatly disagree, there has been massive US investment in the production from our shale fields and associated work with that production. It is why the demand for experienced hands in those fields has shot up very high along with the work hours and wages.

There has to be a private sector formula that helps both the US economy and the domestic producers. Some numbers wizard could easily figure this out.

If you could be more descriptive of what you think should happen, it would help. Because of the relatively high prices, we have had large investments in domestic production and climbing production rates.

In post #8 you said your reduction in gasoline price should be a buck. That is $42 a barrel. The means gasoline selling for less than the price of oil used to make, the transportation pipelines, refineries, distributors all working for a loss?

In post #16, you said we should ban exporting refined products. That means shutting down refineries, loss of jobs, loss of refinery capacity and more money paid to imports from other nations while they build up the refineries.

It is action like those you suggested that drove my descriptions. If you are just complaining and expecting magic to happen, then we can stop our discussion.

The same thing has been practiced by the pharmaceutical companies, they give their product to socialist countries and charge the crap out of us here.

Perhaps if we started by exporting our lawyers and politians that make doing business so expensive and difficult in the US...

So I take exception to your being accused of not supporting the free market. It is your accusers who are hiding behind a government restriction on free market activity in the form of the crude export prohibition.

If you are speaking of me, I have never supported the crude oil export. In reality, if eliminated, it would have little effect in exports, as we are still the largest importer. But it would give the producers more confidence to invest in more production without creating the situation of the late 90's on the west coast.

Sorry I left out a rather important word.

I have never supported the crude oil export BAN.

I am sorry you feel insulted by my words.

A non-apology apology if I ever saw one. I'm sorry that I'm so thin-skinned that terms like welfare queen and Communist raise my hackles.

I thought you wanted to lower prices, not raise them.

I do, it's just that I don't care about "global" prices, only lower domestic prices. Just like they don't care what we have to pay when we are at their mercy. OPEC has been using us wrong for quite a while, and funding terrorists to boot.

there has been massive US investment in the production from our shale fields and associated work with that production. It is why the demand for experienced hands in those fields has shot up very high along with the work hours and wages.

Yeah yeah yeah...that's all very good. Production is up markedly. But gas prices have not come down "markedly". Wages have not gone up overall and millions are unemployed. Businesses can not afford to operate. Looking at the the real unemployment numbers, the shrunken workforce numbers, and the millions more on welfare...we're in a depression.

There is a surplus of motor fuels, but instead of domestic supply/demand driving down the prices...it gets exported.

So US consumers helped fund the R&D, and get stuck with the perpetual shaft. The yardstick is, how much gas can you buy for an hour's work compared to even 10 years ago.

If you could be more descriptive of what you think should happen, it would help.

C'mon, you charge them more, charge us less...even if it's only a few cents...no government required. If we are or become a major producer, we should be able to rule the roost on world prices.

In post #8 you said your reduction in gasoline price should be a buck. That is $42 a barrel. The means gasoline selling for less than the price of oil used to make

I'm familiar with the relationship of crude to gas, however, it hasn't been an honest straight line, gas went down some, then the "global price" kicked in. Don't like it.

you said we should ban exporting refined products. That means shutting down refineries, loss of jobs, loss of refinery capacity and more money paid to imports from other nations while they build up the refineries.

OK, that's an extreme description, and it may not have to happen as you laid it out. Certainly a short term domestic fuel-glut would help gin up the economy, and should "the globe" quickly catch up with their own application of modern extraction techniques and new refineries, "the globe" would be in a lot better shape economically. Of course that would be a massive timing issue, and need to be based on a reversible domestic policy.

I just fail to understand why it is up to us to ease their burden when we are in an economic death spiral.

Hey I'm not the professional here, nor an economic Einstein, but I know expensive fuel is absolutely killing us.

Perhaps if we started by exporting our lawyers and politians that make doing business so expensive and difficult in the US...

Nobody can disagree with that.