Domestic drilling does not reduce the price of gas

[Uther]

More US drilling didn't drop gas price

A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.

If more domestic oil drilling worked as politicians say, you'd now be paying about $2 a gallon for gasoline. Instead, you're paying the highest prices ever for March.

So......


Hmmmm.....

[Common Sense Al]

No shocker there... most of what comes out of the GOP these days is BS.

[Pipeline]

More US drilling didn't drop gas price

A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.

If more domestic oil drilling worked as politicians say, you'd now be paying about $2 a gallon for gasoline. Instead, you're paying the highest prices ever for March.

So......


Hmmmm.....

Uther, I already read the article before you posted it. Blah, blah blah! Al's rants aside.

Look at NG. In the US, due to overproduction and a glut in the surplus supply,due to the one of the warmest winters on record, NG is around $2.30/1000MCF. Europe and Japan pay 5 times as much because they don't produce it , but must have it shipped in, liquified.

Now take oil. We produce it, but not enough, but recently, are now producing more. Yes, drilling here will help gasoline pricing over time. Oil is definitely a global commodity, but we are starting to see a larger disparity between Brent crude, which the rest of the world gets and West Texas Intermediate crude. The price differential between the two used to be close, but today there is a 19 dollar differential and expanding. The rest of the world is paying more and we, will eventually pay less, by drilling. Refineries, man, refineries. They are the culprits locked into long term contracts.

What the Obama administration has failed to do, which does make this fiasco his fault, is not reigning in the speculators. And Congress, both democrat and republican are also to blame. If speculators were required to purchase the actual oil and have to store it, instead of merely purchasing a future's contract (paper), we would have 2 dollar a gallon or less gasoline. You could go out today and buy oil for 60 bucks a barrel instead of over a hundred bucks, if you had a place to put it.

But Congress does nothing but point fingers and make themselves richer, on both sides of the aisle. The percentage of congressional members that have holdings in companies with oil futures contracts is actually quite high. Screw the US citizen and "show me the money". World economies would collapse with the 150MPG vehicle. It's a global economy. Enjoy.

Kumbaya!

[Common Sense Al]

What the Obama administration has failed to do, which does make this fiasco his fault, is not reigning in the speculators. And Congress, both democrat and republican are also to blame.

Does this mean Pipeline is for gov't regulation?

I have also wondered about the speculation aspect... and what can actually be done about it. I would think that Obama would be doing all he can about it though, because high gas prices will definitely hurt his re-election, and I would think that would be at the top of his "want" list.

On the other hand, I would think the GOP wants/likes high gas prices, so they can point the finger at the Dems and try to gain more power. Any bad economic news is good news for the Reps and they will definitely make note of that even if it is completely out of Obama's control. They could also make their promises of $2 gas to try to gain votes... many people will believe such things, unfortunately.

But I don't think you can compare natural gas to oil... there are a lot of differences between the two products in markets, demand, and supply. But if more people had electric cars, then they could use more of that NG to generate low-cost electricity to fuel them (while supplementing "clean energy" (non-carbon) sources of course - as we should ultimately be moving in that direction).

Which reminds me... I thought they built a new NG power generation facility awhile back, but never used it or something because by the time it was finished, NG was high... but now I'm thinking they should fire that thing up if they haven't already! Anyone know more about this?

[Pipeline]

Al,
On #1, you make speculators take physical possession of the oil they buy. Then they won't buy any.

NG cars won't happen anytime soon. Honda makes the only NG car, and not a lot of them, and refueling is a big issue, unless done at home with the Phill unit (costs 4-5 grand hanging off your garage wall) NG long hauling trucks are key. Electric cars are greatness. I'll never own one, but is does take Electricity generation to power (NG, Being an NG kind of guy).
They built a new NG power plant in Tyler or Corsicana last year fueled purely by Barnett shale gas but don't know if it is on line yet. No NG power generation facility is "offline" if it is good to go.

Can I compare NG to oil? Always.
Am I for gov'ment regs? Never. Especially healthcare, abortion, and birth control.

[Common Sense Al]

Al,
On #1, you make speculators take physical possession of the oil they buy. Then they won't buy any.

Yes, I've heard that before... but how do you do it in a global market? Does the US have that control & authority? And wouldn't Obama have done it already because if anything is going to cost him the election with the GOP clowns running against him, it's going to be the economy or high gas prices. Or does it take an act of Congress?

NG cars won't happen anytime soon. Honda makes the only NG car, and not a lot of them, and refueling is a big issue, unless done at home with the Phill unit (costs 4-5 grand hanging off your garage wall) NG long hauling trucks are key. Electric cars are greatness. I'll never own one, but is does take Electricity generation to power (NG, Being an NG kind of guy).

I don't really like NG cars either (as being practical)... electric is better because you can get electricity in so many different ways, including NG... if only the battery technology could be greatly improved and made less expensive.

They built a new NG power plant in Tyler or Corsicana last year fueled purely by Barnett shale gas but don't know if it is on line yet. No NG power generation facility is "offline" if it is good to go.

OK, good... but ERCOT is warning of more possible rolling blackouts. I think deregulation screwed up the system and is preventing more needed power plants from being built, but I guess that's another topic.

Am I for gov'ment regs? Never. Especially healthcare, abortion, and birth control.

Oh, OK. I thought for second there it sounded like you wanted to stop the oil speculators... and the "free markets" certainly won't do that if there's a way for private companies/speculators/investment banks/whatever to drive up prices and make a load of profit even without providing any real service or product. I wish we didn't need gov't regulations, but unfortunately we do.