US oil output at highest level since 1989 (above 8 million barrels@day)

kpbj.com ^ | December 2, 2013 @ 12:05am | Asjylyn Loder

[rktman]

Some new refineries would be real nice. Thanks epa and “lyin’ king”.

[jimmyo57]

Thanks Obama! We couldn’t have done it without you! /sarc

[lbryce]

I saw this news story about a month ago having posted my query in asking FReepers what effect would this auspicious news have on the US economy and America in general. The overall response surprised me in that the consensus from the FReeper community was that the effect on the economy would be negligible.

I'll try to locate the post and share it in the comments.

[Owen]

WTI is, of course, heading back up above $100, at about $98 this moment in Singapore. Brent, more importantly, never got under $100 this year and is back up to nearly $112 this moment.

North American oil has a good chance to achieve tiny increases the next few years, mostly from Canada. US production has a good chance of resuming its normal, natural decline within those same next few years, offset by Canada.

[zeestephen]

Chaotic movement in the price of WTI oil, though.

With USA production way up and the Iran sanctions being rolled back, it looked certain that we would break under $90 a barrel a few weeks ago.

Then, last week, it suddenly looked like we might break over $110 a barrel.

[Smokin' Joe]

...then use explosives followed by a high-pressure stream of water, sand and chemicals to crack open the deposit and free the trapped oil and gas.

I would dearly love to see even one writer get it correct.

The only explosives used are used to perforate production liner (steel casing). The 'fracking' done by those explosives is incredibly minor, especially when compared to the high pressure fluids and proppants pumped through those holes in the casing for the express purpose of forcing fractures into the rock and keeping them open (what the proppants--usually quartz sand of ceramic beads--are for).

[gleeaikin]

Well, one effect it says is that oil producers want to start exporting again. So is this why we want the XL Pipeline, so big oil can start exporting again? I thought it was supposed to be used here?

[zeestephen]

Goof.....

I meant $100.

Not $110.

[Nervous Tick]

>> I thought it was supposed to be used here?

Who cares? Oil is a fungible commodity. Just pump more; whether sold here or abroad, it will benefit all of US.

[lacrew]

I think the Brent price has been tracking higher than the US price...ie there’sa glut here in the midwest...and the producers would rather put the oil on a ship in Houston and ship it to a refinery in New Jersey.

So my price of gas in the midwest will go up.

But no matter what, they are going to find a way to get that oil to an international market. May as well be Keystone and not shipments straight to the Chicoms.

[FreedomPoster]

My thought is that it’s about the only bright spot in our economy, a major part of what is keeping us afloat.

[D Rider]

Thanks Obama! We couldn’t have done it without you! /sarc

How about that timing! Just in time to pay for health insurance!

[SaxxonWoods]

If we deal with Canada on the pipeline, they give us a discount on what we buy. And yes, we will get to buy some of the oil and refine it also.

So, more dependable supply, and lower prices.

[thackney]

Some new refineries would be real nice.

The US already refines more oil than it uses. We export the surplus refined products.

[rktman]

Roger that. The http://www.eia.gov/dnav/pet/pet_move_exp_a_EPP2_EEX_mbblpd_a.htm pages show a lot of information about the export of petroleum products. Whether or not that is good or bad information, I just don’t know. Looks like the energy industry is paying a little better than minimum wages based on the price I’m paying for gas. LOL! At least we aren’t up to european prices. Yet.

[thackney]

Gasoline cost a lot because it is made from expensive crude oil.

The industry does pay well, but most the dollars spent at the gasoline pump pays for the crude oil and taxes, lots of taxes.

Currently we import more crude oil than we use ourselves, refine it and export the surplus products. A lot of that is refinery “leftovers” like petroleum coke and residual oil, products that cannot be economically converted to gasoline and diesel. That keeps more jobs in the US, keeps us with some surplus refining capacity and helps the trade balance.

[no-to-illegals]

Morning gleeaikin. Please pardon me for not answering your question. I just wanted to acknowledge your ping and thank you for the ping.

[rktman]

Yup. Suppose any of the 99%’rs want to go to ND and do a little oil rig work? Maybe 1 or 2. Great time of the year in ND. I’m sure even the folks they hire to clean tools make pretty good $$$. Just a small issue of finding a place to stay. I read somewhere that dorms/trailers/pre-fabs are being provided in some places to accommodate.

[ckilmer]

demand and supply are pretty finely balanced world wide right now.

even though production in the USA Canada and Iraq is increasing—production in mexico venezuela libya and a half dozen other countries is flat to down. Even though demand for oil in the USA is flat to down—demand for oil in the rest of the world is rising pretty steadily. There’s no sign any of that will change any time soon.