Fracking: The Death Knell Of OPEC

Investor's Business Daily ^ | 5 June 2013 | Editorial

[ak267]

Neither....just a “techo nerd” who reads a lot. Over the past few years, I’ve met some academics who know something about this subject. With luck, I’ll attend a Thorium conference as a fan of LFTR.

I’m with Palin’s philosophy on a “all of the above” energy strategy.

[EEGator]

Well you sure seem to know a whole lot. As in way more than a casual interest. It’s cool you’re into budding technologies. Hopefully you make it to the conference. Thanks for spending the time to answer my questions.

[PA Engineer]

..... so why in the frack are gas prices so high????

This is sort of an answer.

Just think of how gasoline gets to the pump. There are exploration costs, drilling, transportation to the refinery, refining and marketing, transportation of the finished product, pipeline costs, terminal costs, tanker transportation costs to the station and station profit. At every stage of production are regulations and taxes. On the finished product are State and Federal taxes.

Those are the simplified reasons with oil being the primary factor depending on grade and demand.

[Cronos]

The problem is, that besides Qatar and Saudi Arabia, the rest of OPEC budget their budgets based on $60 or more a barrel

[zeestephen]

Thanks, Dusty.

Great info - I did not know Fracking was used in vertical drilling.

Until recently, I also did not know that primitive forms of Fracking date all the way back to the 1860’s and were used on water wells as often as oil wells.

Glad I don't have to drink THAT water!

[Alex in chains]

Sorry, but none of that provides answers as to why gas prices have jumped 45 cents in the last few weeks.

The retail price per gallon of gas, less Michigan taxes is approximately $2.40. The wholesale price is probably close to $1.50 per gallon. You can’t tell me that in the last three weeks that exploration costs, drilling, transportation/pipeline costs, etc have gone up by 33 percent.

[PA Engineer]

Sorry, but none of that provides answers as to why gas prices have jumped 45 cents in the last few weeks.

That would depend on what part of Michigan you live in. Do you have EPA mandated summer blend requirements for your region?

[listenhillary]

Refinery Issues, Summer Blend Send Gas Prices Soaring

http://chicago.cbslocal.com/2013/06/06/refinery-issues-summer-blend-send-gas-prices-soaring/