Posted on 03/06/2014 4:21:03 PM PST by rickmichaels
Exactly. It’s not an oil price issue at all. The two are disconnected.
Right. Fracking not viable sub $80/bbl
I'm with you though, the prices can go down, it won't hurt my feelings any.....
Regulated Sulfur level differences make a partial explanation, but that and inherent energy content differences and taxation differences still don't make an 100% explanation.
Realistically, crude is not that expensive when relatives cost increases of everything else are considered. Especially when the cost of production is also looked at.
The cost of crude has a lot less to do with the cost of gasoline than it used to. And the cost of gas is how most people judge oil or energy costs.
Lower gas prices? Throttle the damn government. That is driving gas prices. The EPA and it’s unconstitutional mandates.
They’re having a price war in Sharon. Its 40 cents cheaper than the neighboring towns. A new Speedway started it.
I assume most of it is that we can export diesel which has high profit margins overseas.
Can’t export crude, but ok for refined products.
This has details:
http://www.cnbc.com/id/100943620
But if it tanks, new production will stop—especially the more expensive kinds of production.
There, it could just be demand driven by Big Trucks and all the Turbo-Diesel pickups....
Did you think I was suggesting that?
It was only $o.13 when i was in high school and only got to $0.26 until 1974 when a rediculous story in the Los Angeles Times caused a nation wide rush to the gas stations and emptied them causing the price to jump to $0.78 overnight.
even in my teens,i can still recall seeing a caption in the news before a commercial,it read “Gas,75 cents a gallon?”.
When QE infinity stops, the price will come down.
I think there’s a simpler explanation. imho the price of oil is set worldwide while the price of natural gas is set locally. the world wide demand for oil is rising pretty steadily as more and more people enter the middle class and get cars. that’s not going to stop. meanwhile most of the world’s oil fields are old. they can barely keep up with their declines. only Iraq outside of the USA and canada is getting a big bump in production to keep up with world wide demand. while the USA is enjoying a fracking boom—it will be five years or more before other countries master the technology and bring enough volume to market to make a difference. imho the only thing USA rising production is doing is putting a cap on price rises. There will be a collapse in oil prices — just not in next couple years. These are boom times in the USA oil patch. Oil/gas is currently adding about an additional 400 billion to the economy. that number will rise to 1 trillion annually in 3-4 years.
You are also paying road taxes that do not go to fix roads. You are paying extra because the tyrants in government have locked up easy oil on our on government owned property. Chickenpooper Colorado’s top tyrant has added restrictions on methane release and unrealistic demands for cleanups. A drop of oil can close down a site and require calling in a cleanup crew while split gas in a filling station is ignored.
You are so correct. You tell a dummy that and they don’t believe you.
I’ve been wondering why gas prices are still high with the new oil boom in North Dakota and Texas. Do the feds really have that tight a control on the energy market?
(Now Mr. Obama is even taking credit for the energy boom, though we all know he did everything he could to prevent it.)
Whoops, thanks fanfan!
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