While the White House spied on Frau Merkel and Obamacare developed into a slow-moving train wreck, while Syria was saved from all-out war by the Russian bell and the Republicrats fought bitterly about the debt ceiling… something monumental happened that went unnoticed by most of the globe.
The US quietly surpassed Saudi Arabia as the biggest oil producer in the world.
You read that correctly: "The jump in output from shale plays has led to the second biggest oil boom in history," stated Reuters on October 15. "U.S. output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009, the fastest expansion in production over a four-year period since a surge in Saudi Arabia's output from 1970-1974."
After the initial moment of awe, pragmatic readers will surely wonder: Then why isn't gasoline dirt-cheap in the US?
There's indeed a good explanation why most Americans don't drive up to the gas pump whistling a happy tune (and it has nothing to do with evil speculators). Let's start with the demand side of this equation.
Crude oil consists of very long chains of carbon atoms. The refineries take the crude and essentially "crack" those long chains of carbon atoms into shorter chains of carbon atoms to make various petroleum products. Some of the products that are made from petroleum may surprise you.
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It is expensive in the US because it is a global market. If somebody outside of the US wants to pay more than 80 cents/gallon for it, the company will sell it to them instead of to us. Basic capitalism.
ReplyDeleteAnswer to the question:
ReplyDeleteBecause the FED keeps printing money which deflates the value of the money you have.
Bc...oir politicians have bwen payed off NOT to drill here.
ReplyDeletegreed
ReplyDeleteI love how some people blame the president for gas prices. Its almost like you want him to control them. Sounds commie to me!
ReplyDeleteThe only reason that we are producing so much is due to PRIVATE companies and PRIVATE land...Obama has done all he can to stifle production...look to North Dakota--Wal-Mart workers make $18 an hour...there are tens of thousands of jobs that pay 6 figures...all due to PRIVATE industry that Obama wants to choke off.
ReplyDeleteThe real reason? You all cant handle the truth..our gov 6:33 is sleeping with enemy...its so obvious obama is no better then the rest...and .no profit in .80 cents gas
ReplyDeleteAspirin is not derived from oil. However it is the only NSAID pain reliever that is not. All others come from petroleum.
ReplyDelete"Anonymous said...
ReplyDeleteI love how some people blame the president for gas prices. Its almost like you want him to control them. Sounds commie to me!
November 1, 2013 at 6:33 PM"
A president can lower the gas prices with the stroke of a pen. President Bush did it.
The Obama admin is issuing one half the offshore drilling permits than Pres Bush's admin. The number of leases being issued on public lands has fallen drastically also. The fact is a president can be blamed.
Obamie wanted $7/8 a gallon like Europe remember??? then we WILL ALL be driving Mr Bean cars...He is also in bed with his Saudi Boyfriends.
ReplyDeleteIt was Ken Salazar former (I believe he's since left) head of the Interiour Dept that answered he didn't care if gas went to $7/gallon, they were not issuing more US drilling permits.
ReplyDeleteA president can very much so control to a point which in turn lowers gas prices by increasing the supply domestically, 6:33.
this is why the oil companies were loading up ships with gasoline and selling it overseas, to keep the price from crashing to .80 a gallon. amazing how when one refinery goes off lie all of a sudden there is no room to pick up the slack and the price spikes but as usual takes forever to inch it's way back down!
ReplyDelete6:43 The gas stations control that profit line, as well. Gas could be at least $.20 cheaper, right now, but that would cut into the store owners pocket. Don't we want to run his small business into the ground? Isn't that the new American way?
ReplyDeleteHow much of the $3.85 is tax? About $.50 here. The rest is the cost to make it plus inflation. Wiki says in '98-02, gas was fluctuating from $1-$2, tax included. Back when bread was $2.25. Now that bread and milk are 25% higher, gas is $2.50.
ReplyDeleteOh, wait.
$3.85?
25% of the price.......
Since when has bread cost $2.25....
ReplyDeleteGasoline should be Based on your salary or lack of, let the President pay $10/20 a gallon and i would be very happy paying $1.25 a gallon lets see how that would work out HUH PreZ.?
ReplyDeleteTaxes, the gas stations make only about 5 cents per gallon while it's like 3.50 per gallon for us to pay. It's all gas cost(transportation), Taxes, Labor and etc.
ReplyDelete