Posted on 06/13/2013 3:35:20 AM PDT by lbryce
A report has revealed that 2012 saw the largest single-year increase in US oil production ever recorded.
US production grew due to an increase in techniques such as fracking, a method for extracting shale oil and gas, the report by oil giant BP said.
Overall, global energy consumption grew by 1.8% in 2012, a smaller increase than in 2011. China and India accounted for almost 90% of that growth.
(Excerpt) Read more at bbc.co.uk ...
Yeah, silly me, bringing up pesky things like a glut of above ground supply not finding it’s way into lower prices of crude or refined product. Sorry for not staying within the intended purpose of the post.
Gas will never be $2.00 per gallon again, and you don’t want it to be.
Yes, we have the wonderful technology that has made accessible oil and gas reserves that were previously thought to be not recoverable. But it comes at a cost. It costs $70 per barrel just to get the oil out of the ground in a shale fracking operation. That means that with transportation and other costs, we need oil to be at $80-90 per barrel just to make it economically profitable to drill for it here.
If the price drops below that amount, the wells shut down, we lose jobs and all this good economic news is history.
As long as the price is stable around $3.50 per gallon, we can enjoy the energy boom, the economy will adjust and life will be good. In fact, it’s been stable around this price range for about five years now, and that’s why we are having the domestic energy increase.
Obama and B. Clinton are both either fortunate or were blessed for some reason. Clinton had the Internet/Technology revolution that created massive spending by individuals and companies and Y2K that caused massive spending by companies.
Obama has the oil.
Neither did a damn thing to create either, but those things saved the economies while they floundered and wasted tax dollars and set up massive regulatory beasts. Poor old Jimmy just didn’t get lucky with an energy or technology revolution.
It would be pretty grim.
if they have filled the storage tanks and pipelines it seems the prices should drop dramatically.
I hope they are not shipping so much overseas that the effect here is but minimal.
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