Posted on 04/24/2018 11:09:46 AM PDT by Berlin_Freeper
As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits - and flooding Europe with a record amount of crude.
(Excerpt) Read more at reuters.com ...
For the same reason we export Boeing Jets and import Airbus Jets. I am sure the oil expert here can tell you why.
We may export oil from the west coast but still import to the east and gulf coasts.
“Yeah, then why is the price of gas going up?”
Lowest reserves in a long time, supplies tighter worldwide due to Russia, OPEC and Venezuela, and higher anticipated demand as summer approaches.
US filling the need, but the above still controls. One more geopolitical problem and we will be in shortage.
Arbitrage. Look it up.
Oil is a commodity. Its price is roughly the same all over the world (depending on its quality).
Trump was speaking of that high price in general -- caused largely by OPEC's withholding of some production.
When my group’s export license was delayed by the Obama Admiistration, one of the reasons they used was that the export of US oil would cause US domestic oii prices to increase which is actually true. But the real reason was the Obama people were against fossil fuels in general.
As for an oil glut in Europe, yes it is happening and it is hurting the Russians.
DOMESTIC PRICING
West Texas Intermediate Crude Oil (WTI) Prices
Close Date Price per 42-gallon Barrel
04/17/18 $66.52
EUROPEAN PRICING
The current price of Brent crude oil as of April 20, 2018 is $73.73 per barrel.
Difference domestic versus export pricing is about $7 and change.
WTI lags Brent.
The reason oil prices were so low in past years is because Prince Alwaleed of House of Saud was flooding the US market with cheap Saudi oil for the purpose of bankrupting US domestic oil drillers and producers which he saw as an existential threat to Saudi oil revenues. He did cause US oil industry tremendous pain and some producers did shut down but most were not destroyed and today they are thriving. Alwaleed was arrested and he’s gone from the scene.
With US oil exporters flooding Europe with oil, the Russians have no choice, they must lower their prices into Europe. Once Brent pricing comes down, WTI will follow. WTI always follows Brent.
Fool me once same on you Fool Me Twice Shame On ME !
So I may not be the shiniest apple in the barrel BUT...
Somebody seems to be asking me to totally suspend my cognitive intelligence. Wait a Minute here .... So there is enough USA OIL to “flood” the market in Europe BUT , not enough USA OIL to produce a low cost retail consumer gasoline in the USA .... This is total B.S. ... Hay Mister Trump, stop flooding The Eastern Hemisphere with USA Oil , and start giving your loyal taxpaying patriot Voting Public a FUQing Break ... do they really expect us to believe all this rubbish and still expect us to once again swallow #3 dollar (plus) a gallon prices , USA OIL corporations are not only gouging US , but they have the out N’ out affrontary to run this Bull Sheet Down our Throats ? Trump is in bed with Oil , he looks like a whore
Nonsense.
Capitalism vs government control. The good guys win every time!
When are we going to get gas as cheap as the Saudis did all these years? When I was much younger, gas was 50 cents a gallon... we could cruise around on that.
15 gallons to fill a car would come to 7.50 and no extra tax. I pay 30.00 and more, to fill my tank today.
On top of this, the USA has so much natural gas that comes out with the oil pumping that it has to be flared (burned) off, wasted.
!!!!
At night, coming home on highway 1804 running north out of New Town, looking across the Missouri, you could see the flare stacks burning, many miles away. To many to count while driving
Trump was speaking of that high price in general — caused largely by OPEC’s withholding of some production.
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And so that wonderful mechanism of FREE enterprise and markets, supply and demand, sends the “signal” to American producers to deploy capital and resources to INCREASE PRODUCTION. The Saudis and Russians will see the backfire from their actions to limit production.
I guess it’s time for the Saudis & Russians to increase their backdoor financing of their American political friends.
My group had signed contracts with KOGAS in S. Korea with their billionaires pledging investment to construct LNG terminals in Long Beach, CA and in New Jersey. The contract was conditional on obtaining approval of an export license.
I foresee LNG terminal construction on both coasts of the USA with NG piped into the LNG terminals from oil-producing regions.
So your observations of burning NG may fade in the next few years.
A strong LNG export infrastructure will make the USA the biggest seller of NG in the world, and that will really hurt the Russians.
I don’t think the President wants to deliberately hurt the Russians but for sure he’s interested in helping domestic exporters as long as pricing here at home brings benefits to Americans.
How US-Russia relations will evolve I am not sure. The Russians will be happy if their cash cow is not starved to death. It will be interesting to see how everyone adjusts.
This one series of actions alone - all of the deregulation, the pipeline, the auctioning off of leases, etc., etc., plus the saving of the coal industry - PROVES that Trump was NEVER in the pocket of the Russians. He was saying during the entire campaign that he’d do this, and followed up by actually doing what he said he’d do.
Since Russia, like the Soviet Union 30-35 years ago depends on sales of oil and natural gas for roughly 2/3 of its foreign currency reserves (with which it spends multiple billions for defense, and to prop up its NY State-sized economy), ANYTHING that reduces oil/natural gas revenue to Russia hurts them badly. Drowning the world in oil, along with increased defense spending (another Trump promise fulfilled), was one of the pillars upon which Reagan and William Casey planned to bankrupt the Soviet Empire (quite successfully, as it turns out). Putin knows well that this is what happened in the 1980s, and that Russia is at least as vulnerable to it now as then.
Compare and contrast with Hillary wanting to shut off oil exploration and production, ditto for natural gas, and to continue picking apart the coal industry, PLUS not building up our defenses...and now you can EASILY see which candidate Putin really favored. Oh, and add to that the fact that the Russians had all of the goods on Hillary WRT the entire Uranium One situation.
This, by the way, is exactly why the entire environmental advocacy industry is peopled by a bunch of watermelons (green on the outside, Communist Red on the inside) - because it has LONG (i.e. for multiple decades) been in the interest of the Soviets/Russians to keep our oil and natural gas in the ground or under the oceans - because if we got it out, they’d be bankrupted. They were hoping to take over before we woke up and realized this, and to then pump it out themselves, but thanks to Reagan and Casey they lost.
Trump never was “Putin’s candidate” - that was Hillary. Next election, it’ll be whomever campaigns on crippling the energy industry in this country (under the guise of protecting the environment/fighting global warming, etc.).
Let the idiot anti-Trump Leftists (but I repeat myself) know this the next time you have an argument over “Russia, Russia, Russia” with them - they’ll be reduced to stammering, or else calling you a racist. But let them know that YOU KNOW THE TRUTH about Russia, energy, the environmental movement and the Dems.
Flood the owner/operator US trucking industry with lower gas prices to increase pay, stop the attrition and reliance on immigrant drivers, and gain 2 million voters (drivers) and their family members (3-5 million).
I’m betting our impending energy Independence is what is causing so much “consternation” around the world. Note the reforms occurring in Saudi. Russia’s increasing activism. China’s backing down on NK. Once we are self reliant on energy, we are mostly self sufficient (or can be if we choose it.. ie.. steel) The rest of the world can go pound sand. We will be free.
“American engineering truly had a golden age that was set back for decades by politics. Now with President Trump, it’s all coming back. The young people of today are so fortunate.”
Hopefully Trump and his vision, together with 2 Pence (or Cruz, or anyone forward looking and patriotic) terms will do the trick. Of course, you also have to get gender and race studies out of STEM altogether, and not admit people on the basis of quotas, uh, ummm, excuse me, AFFIRMATIVE ACTION.
Too bad about your missed opportunity...but keep banging away at that door of opportunity, it’ll open up again.
Also there is a report I have seen that we have about 900 years of Frozen Methane at the bottom of the ocean that will be very disruptive in the whole energy schema
https://www.eenews.net/stories/1059978042
clip from the article above
The tests are being conducted in a methane hydrates formation located along the Nankai Trough off Japan’s south-central coast. Jogmec estimates that the site holds about 40 trillion cubic feet (tcf) of methane — enough to replace 11 years of LNG imports. Early estimates suggest that all of Japan’s offshore methane hydrates formations could hold enough natural gas to supply the country for 100 years.
While Japan was celebrating its success, a less-noticed assessment on America’s methane hydrate potential was published in a National Energy Technology Laboratory newsletter. The report by the Bureau of Ocean Energy Management estimated that methane hydrate formations along the U.S. East Coast contain 21,702 tcf of natural gas.
The greatest concentrations lie along the outer continental shelf from Rhode Island to North Carolina.
America’s Pacific coast could hold methane hydrates formations with an additional 8,192 tcf of natural gas, according to the report. An earlier analysis estimated that hydrate fields in the Gulf of Mexico could contain 21,444 tcf of natural gas.
That’s a total of 51,338 tcf of gas — a huge resource considering that the United States consumed 24.4 tcf of natural gas in 2011. Researchers are now analyzing data on the methane hydrates potential off Alaska’s Arctic shores.
Keep on truckin baby!
With us supplying the rest of the world with oil, Trump should be advised that the oil companies continue to screw us with their high prices. A gallon of gas is hitting $3.
More good news!
In 1920, the U.S. Geological Survey estimated that “the world’s supply of recoverable petroleum” was no more than 60 billion barrels. It was wrong. The world has already produced 1,400 billion barrels of oil. Worldwide, there is about 1,700 billion barrels of oil in reserve – nearly a 60-year supply at current production rates. And the size of the ultimate resource is likely to be greater than 10 trillion barrels.
Peak oil predictions and other Malthusian prognostications of resource limits have failed repeatedly for decades….
Oil and other fossil fuels will continue to be our primary energy sources through the end of this century because they offer four great advantages. Compared to renewables, fossil fuels are inexpensive, reliable, abundant, and concentrated. The age of oil is far from being eclipsed. We have barely begun to exploit unconventional oil resources. The western U.S. alone contains at least 2 trillion barrels of petroleum in oil shale formations. At a current U.S. annual consumption rate of 7.2 billion barrels, that’s a 278-year supply.
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