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To: scooby321
All I know US has increased output and yet Gasoline prices have not move much in the Country.

Somewhat counter-intuitively, I suggest this is on net a good thing.

If gasoline (actually oil) prices were to drop dramatically, a lot of the drilling would quickly stop.

Horizontal drilling is a good deal more expensive and much lower prices would mean a lot of the wells being drilled would quickly be considered uneconomic. Drilling would stop. It's possible a lot of the drilling capacity would move overseas where they could still make money.

From a national security standpoint, I think adding as much production capacity as possible here is a lot more important than having gas be a dollar cheaper at the moment.

10 posted on 02/18/2014 5:45:34 AM PST by Sherman Logan
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To: Sherman Logan

Gasoline is easy to ship a priced globally. Natural gas is not easy to ship and priced locally. So nat gas is cheap and gasoline is not.

There are other factors - taxes, dollar value, ethanol, state-mandated blends, etc. But, in the end, US refiners are not going to sell gas here for a dollar when they can get four dollars elsewhere.


12 posted on 02/18/2014 7:17:07 AM PST by stinkerpot65 (Global warming is a Marxist lie.)
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