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Price of Gas in U.S. Rises as Refiners Export More to Other Countries
WSJ ^ | 21 April 2014 | Nicole Friedman

Posted on 04/22/2014 12:36:23 PM PDT by Theoria

Drivers in the U.S. are facing rising gasoline prices ahead of summer-vacation season, just as refiners here are shipping more gas to other countries.

A new pipeline, built to release a glut of crude oil that was stuck in the middle of the country, is now feeding oil to refineries on the Gulf Coast that churn out gasoline and diesel. While these fuels still make their way to the Southeast and the East Coast, growing amounts are being sold to Mexico, the Netherlands, Brazil and other countries.

The push into these markets has been spurred by the U.S. oil boom. Rising oil output had been flooding the nation's oil market in recent years, keeping U.S. crude prices low relative to world prices. Facing tepid fuel demand in the U.S., refiners have been ramping up exports, creating more global competition for U.S.-produced fuel.

While the construction of pipelines and other transportation infrastructure allows other countries to benefit from the oil boom, it also means the market for motor fuels has become more competitive. The gasoline market now has to reckon with demand from other countries—and the potential impact on prices—during a U.S. economic recovery many economists see as fragile.

"Quite frankly, this is not just a U.S.-centric topic anymore," said Nancy White, a spokeswoman for motor club AAA. "Production is going overseas, so that impacts the supply here, and that will drive prices up."

Gasoline stockpiles nationwide are at their lowest point for this time of year since 2011, according to the U.S. Energy Information Administration. Meantime, the retail price for a gallon of regular gasoline averaged $3.68 on Monday, up 4.2% from a year ago, according to the EIA. That is the highest price since March 2013. AAA had the average price on Monday at $3.67.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs
KEYWORDS: economy; exports; federalland; federallandmap; gas; gasoline; gasolineexports; pipeline
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1 posted on 04/22/2014 12:36:24 PM PDT by Theoria
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To: Theoria
refiners here are shipping more gas to other countries.

They have as much allegiance to the U.S. as does Obama.

2 posted on 04/22/2014 12:39:45 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: Theoria

I read somewhere that America is now producing more crude than we have the ability to efficiently refine. We haven’t built new refineries a few decades now.

I don’t know if that factors into the equation or not. But if true, it would seem logical to assume that having the resource without being able to bring it to market does not affect the demand as much as we need to bring down the price.


3 posted on 04/22/2014 12:42:22 PM PDT by Tenacious 1 (My whimsical litany of satyric prose and avarice pontification of wisdom demonstrates my concinnity.)
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To: Theoria

We ought to boycott the basta$ds.Let them drink the gasoline.


4 posted on 04/22/2014 12:44:34 PM PDT by Renegade
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To: Theoria

Caliph Baraq is pleased.

The goal of progressives is to get us out of those d@mn personal cars and into easily manipulated mass transit.

Less driving >>> Gaia smiles.....


5 posted on 04/22/2014 12:45:01 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: Theoria
Remember this graphic from 2011? Oh for the good ole days of $3.10 per gallon!!!


6 posted on 04/22/2014 12:46:08 PM PDT by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: Tenacious 1

One would have assummed post 9/11 that part of the defense strategy would have been to create more refineries just because of the threat of unstability in the ME and of other concerns with oil production. But, I’m not shocked at that. It took several years before we[the prez] would evern lift the executive ban on off shore drilling[2008][Still a federal ban, me thinks].


7 posted on 04/22/2014 12:47:35 PM PDT by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Tenacious 1

“We haven’t built new refineries a few decades now.”

Not quite true and US refining capacity has increase over the last few decades.


8 posted on 04/22/2014 12:48:04 PM PDT by Oliviaforever
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To: dragnet2

‘”They have as much allegiance to the U.S. as does Obama. “

Okay, you are now president of a publically owned Americo Gas corporation. You can sell your product in the domestic market for $x/gallon. Or, you can sell your product into the foreign market for 1.Y*($x/gallon). Now, who do you actually work for? The answer is the shareholders. So, do you tell the shareholders, “Hey, I could have made more money for you, but I’m patriotic.”? I don’t think you’d work there much longer.

Also, producing gas for the domestic market is probably much more expensive. You have to meet all kinds of standards that you do not have to meet for the foreign market, making the cost end of your cost/profit equation that much better for the stockholder.

In addition, if you saturate the local market, yes it does drive down prices. That means you make even less on the gas because you sent it here.


9 posted on 04/22/2014 12:49:15 PM PDT by Gen.Blather
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To: Theoria
"Production is going overseas, so that impacts the supply here, and that will drive prices up."

We have done dumber things but that list is kinda short.

How about we sell what we need HERE cheap, then ship the rest and let the other countries figure out how to drill and refine on THEIR own dime?

.

10 posted on 04/22/2014 12:49:21 PM PDT by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: Theoria
The USA has more oil than all of the rest of the world combined . most of it is on federal lands. that is communism/socialism. the government should not own all that land. Obama and democrats don't allow drilling on these lands:


11 posted on 04/22/2014 12:52:18 PM PDT by Democrat_media (Obama ordered IRS to rig 2012 election and must resign)
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To: dragnet2

I think the oil companies have an allegiance to their stock holders to sell their product in a manner at at a price that will be most profitable.


12 posted on 04/22/2014 12:52:25 PM PDT by Oliviaforever
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To: TLI
How about we sell what we need HERE cheap

So if you owned an oil property here in the US, you'd be willing to take below market prices for the crude oil or methane?

13 posted on 04/22/2014 12:53:12 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: Gen.Blather

Good post and demonstrates that you have an understanding of the Free Market.


14 posted on 04/22/2014 12:55:26 PM PDT by Oliviaforever
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To: Theoria

But not a peep from the public. Why? The media hasn’t told them that they should be upset about this.

The American public deserves every bit of what is coming.


15 posted on 04/22/2014 12:56:01 PM PDT by brownsfan (Behold, the power of government cheese.)
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To: Theoria

I have no problem with selling refined products to Mexico, as long as they are replenished by cheap Mexican Crude.


16 posted on 04/22/2014 12:56:28 PM PDT by Paladin2
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To: Theoria
The USA has more oil than all of the rest of the world combined . most of it is on federal lands. that is communism/socialism. the government should not own all that land. Obama and democrats don't allow drilling on these lands:


17 posted on 04/22/2014 12:57:48 PM PDT by Democrat_media (Obama ordered IRS to rig 2012 election and must resign)
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To: TLI

Selling refined products is a value added sort of enterprise. Let the rest of the world cough up cheap crude.


18 posted on 04/22/2014 12:57:56 PM PDT by Paladin2
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To: Theoria

The Free Republic Free Trade Army will tell you this is a good thing. You should be happy that you participate in a gloBULL market, now shut up and buy a Prius and oh yeah, sell your boat.


19 posted on 04/22/2014 12:57:57 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Cheerio
The dow during the same period. It depends on your income if the gas matters or not or if ya care about the market more.


20 posted on 04/22/2014 12:58:48 PM PDT by Theoria (End Socialism : No more GOP and Dem candidates)
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To: dragnet2
Why do we have so many damn enemies to this country.

Is the freakin almighty dollar so important that you'd place the country of your birth in jeopardy?

You traitor b@$t@rds!

21 posted on 04/22/2014 12:59:24 PM PDT by servantboy777
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To: Theoria

I detest regulations. But in this case oil products coming from American soil need to sold within the nation, surplus sold outside. I suspect American producers are owned by foreign interests and need to be reigned in.


22 posted on 04/22/2014 12:59:31 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: TLI

“How about we sell what we need HERE cheap....”

The great thing about America is that you are free to do that.

You could open the TLI Oil Company.

All you would need to do is find a spot where you think there could be oil, lease the land, spend maybe 20 to 50 million drilling a well, extract said oil from the ground, transport you oil to the refinery that you buy for a billion dollars and then transport your finished product to your market and sell it Here cheap at your TLI Gas Stations which will cost around two million dollars each.


23 posted on 04/22/2014 1:02:58 PM PDT by Oliviaforever
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To: TLI
How about we sell what we need HERE cheap, then ship the rest and let the other countries figure out how to drill and refine on THEIR own dime?

There you go, getting all common sense on us all again. .

24 posted on 04/22/2014 1:07:16 PM PDT by onona (I’ve pretty much given up on sanity returning.)
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To: elpadre

“I detest regulations. But in this case oil products coming from American soil need to sold within the nation, surplus sold outside. I suspect American producers are owned by foreign interests and need to be reigned in.”

How do you define “surplus?”

What about if we simply follow Free Market principles and not adopt the economic policies of Venezuela?


25 posted on 04/22/2014 1:08:06 PM PDT by Oliviaforever
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To: elpadre

You don’t detest regulations. You detest free markets.


26 posted on 04/22/2014 1:10:53 PM PDT by DManA
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To: onona

Would you be in favor of forcing a farmer in Iowa to sell corn in the US for $3 a bushel that he could sell on the world market for $5?


27 posted on 04/22/2014 1:12:34 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: onona

Do you realize that you are advocating the exact policy implemented by Hugo Chavez?


28 posted on 04/22/2014 1:18:12 PM PDT by Oliviaforever
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To: Oliviaforever

the oil industry claims it is all supply and demand - I don’t see it. The American public has been taking it on the chin from Washington, Wall Street and the oil industry.

I can’t help but think of all the countries who protect their own products and charge high duties for American goods.

I am not a one world guy. Take care of the US first, secondarily the rest of the world.


29 posted on 04/22/2014 1:18:20 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: dragnet2

refiners here are shipping more gas to other countries.

They have as much allegiance to the U.S. as does Obama.
*******************************************************************

As a believer in free market capitalism, I think that it’s simply a matter of a business selling their product to willing buyers at market prices (all the while producing American jobs and wealth). Demand is down in the US thanks to Obama’s slow destruction of the American economy.

I suspect you’d have to look long and hard to find a Canadian (which has an economy that is outpacing the Obama-hindered American economy) who would say it would be “un-Canadian” for Canadian producers of crude to sell/export the crude to the United States.

If we say we believe in Freedom but begin to demonize folks who exercise that freedom we are slip-sliding away toward progressive beliefs.


30 posted on 04/22/2014 1:20:03 PM PDT by House Atreides
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To: House Atreides

You actually think this is a non-manipulated corruption free, free market?

Come on...

These people would support our enemies if there was enough profit in it. Oh wait....That’s already happened!


31 posted on 04/22/2014 1:24:24 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: elpadre

“Take care of the US first, secondarily the rest of the world.”

The cool thing about a Free Market is that it does take care of the US first.

Could you please name one country that has implemented price controls on oil and then saw oil production increase and prices fall?


32 posted on 04/22/2014 1:26:50 PM PDT by Oliviaforever
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To: nascarnation
Would you be in favor of forcing a farmer in Iowa to sell corn in the US for $3 a bushel that he could sell on the world market for $5

Sadly, I think it generally works the other way with the farmers.

In the case of sugar, I believe that you are being forced to buy sugar produced by American farmers, and are not allowed to buy sugar produced by foreigners.

This situation has led to many candy companies moving production to Canada or Mexico. The companies are allowed to import finished candy, but are not allowed to import the sugar to make the candy.

33 posted on 04/22/2014 1:29:15 PM PDT by j. earl carter
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To: Oliviaforever

“All you would need to do is find a spot where you think there could be oil, lease the land, spend maybe 20 to 50 million drilling a well, extract said oil from the ground, transport you oil to the refinery that you buy for a billion dollars and then transport your finished product to your market and sell it Here cheap at your TLI Gas Stations which will cost around two million dollars each.”

That is a fine argument, just as long as your oil company isn’t pumping that oil off public lands.

In that case the public should have a say on exporting it.

Nobody is talking about nationalizing the oil companies, but if we keep getting hosed on gas prices you can bet your ass they will be!


34 posted on 04/22/2014 1:32:24 PM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Beagle8U

Should the public have a say in how the cattle that are grazed on public lands are sold?


35 posted on 04/22/2014 1:38:21 PM PDT by Oliviaforever
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To: Beagle8U
Well, the kicker would be to use eminent domain to take land away from people who chose not to sell it. And the products that would be carried on such a pipeline then would be exported out of the country. That would be hysterical.
36 posted on 04/22/2014 1:39:32 PM PDT by Theoria (End Socialism : No more GOP and Dem candidates)
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To: Beagle8U
but if we keep getting hosed on gas prices you can bet your ass they will be!

And then there won't be any gas. Just like Venezuela.

/johnny

37 posted on 04/22/2014 1:41:29 PM PDT by JRandomFreeper (Gone Galt)
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To: onona
There you go, getting all common sense on us all again.

Actually with todays technology the situation is even more suspect.

Take a look at the profits by Exxon in the "slump" of late 2008 - early 2009.

Thirty five BILLION.

And the price of oil was in the mid 40s to mid 50s.

http://www.oil-price.net/en/articles/How-Exxon-paid-zero-tazes-in-2009.php

If we are the leading producing company on the planet can we not set the "international" price?

Whatever is "lost" by the producing companies in domestic pricing can be added to the "international" price.

That would provide motivation for other countries to drill and frack.

.

38 posted on 04/22/2014 1:42:53 PM PDT by TLI ( ITINERIS IMPENDEO VALHALLA)
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To: j. earl carter

“...In the case of sugar, I believe that you are being forced to buy sugar produced by American farmers, and are not allowed to buy sugar produced by foreigners.

This situation has led to many candy companies moving production to Canada or Mexico. The companies are allowed to import finished candy, but are not allowed to import the sugar to make the candy.”
********************************************************************

This is a perfect example of why we should let the free market reign—unhindered by ridiculous restrictions.


39 posted on 04/22/2014 1:44:45 PM PDT by House Atreides
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To: Oliviaforever

“Should the public have a say in how the cattle that are grazed on public lands are sold?”

Is there a beef shortage?


40 posted on 04/22/2014 1:47:17 PM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Beagle8U

Is there an oil shortage?

Why do you advocate government price controls?


41 posted on 04/22/2014 1:48:49 PM PDT by Oliviaforever
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To: Theoria

How about adding a hefty tariff against all oil products sold outside this nation? The money earned should then be earmarked to debt reduction. No earmarks.


42 posted on 04/22/2014 1:49:10 PM PDT by Alas Babylon!
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To: JRandomFreeper

There would be plenty of gas. US production is at all time highs.


43 posted on 04/22/2014 1:49:31 PM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Theoria
My Gawd, man, don't you know driving up energy prices for US citizens is critical to stopping the rising of the seas and bringing the Unicorn back from extinction? (sarc)
44 posted on 04/22/2014 1:50:30 PM PDT by Rashputin (Jesus Christ doesn't evacuate His troops, He leads them to victory.)
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To: Beagle8U
There's plenty of oil in Venezuela, too, and cattle. But when the government nationalized those industries, the products dried up.

It happens every time socialists try to nationalize something.

/johnny

45 posted on 04/22/2014 1:51:31 PM PDT by JRandomFreeper (Gone Galt)
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To: Oliviaforever

I didn’t say anything about price controls, just exports of oil off public land while we are being hosed on prices.

Sell it here for all the market will bear, no price controls.


46 posted on 04/22/2014 1:52:51 PM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: Oliviaforever

So, even if Keystone is approved, even if we drill more oil, we’ll still be paying out the wazoo for fuel. We could still see shortages if fuel is exported for the highest price. Isn’t that what Stalin did in the 1930s with food? Why should we approve these things then? The left would use this as an argument that free markets don’t work.


47 posted on 04/22/2014 1:53:28 PM PDT by virgil (The evil that men do lives after them)
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To: Oliviaforever
People just don't understand.

Nationalization and price controls are socialist tools and ideas.

/johnny

48 posted on 04/22/2014 1:53:52 PM PDT by JRandomFreeper (Gone Galt)
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To: Alas Babylon!

Who pays the tariff, the producer or buyer?


49 posted on 04/22/2014 1:54:18 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: JRandomFreeper

You and oliver are the only ones talking about price controls.


50 posted on 04/22/2014 1:56:43 PM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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