Skip to comments.Price of Gas in U.S. Rises as Refiners Export More to Other Countries
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 countriesand the potential impact on pricesduring 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 $3.67.
(Excerpt) Read more at online.wsj.com ...
They have as much allegiance to the U.S. as does Obama.
I read somewhere that America is now producing more crude than we have the ability to efficiently refine. We haven’t built new refineries a few decades now.
I don’t know if that factors into the equation or not. But if true, it would seem logical to assume that having the resource without being able to bring it to market does not affect the demand as much as we need to bring down the price.
We ought to boycott the basta$ds.Let them drink the gasoline.
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.....
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[Still a federal ban, me thinks].
“We havent built new refineries a few decades now.”
Not quite true and US refining capacity has increase over the last few decades.
‘”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.
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?
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.
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?
Good post and demonstrates that you have an understanding of the Free Market.
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.
I have no problem with selling refined products to Mexico, as long as they are replenished by cheap Mexican Crude.
Selling refined products is a value added sort of enterprise. Let the rest of the world cough up cheap crude.
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.
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