So much for the ignorant notion that "drill, baby, drill" would in ANY WAY lead to the output of additional drilling in this country being used for domestic consumption. IT DOESN'T WORK THAT WAY.
They drill; they pump; they sell to the highest bidder...and if it ain't the U.S. of A., then they will sell to the higher bidder...
It's like waving a feather in front of a kitten...You can keep them amused for hours with the concept that all energy extracted here stays here...
Yeah, these guys really need some additional tax-breaks for incentives to make more profits....
LadyJazzer wrote: So much for the ignorant notion that "drill, baby, drill" would in ANY WAY lead to the output of additional drilling in this country being used for domestic consumption. IT DOESN'T WORK THAT WAY.
They drill; they pump; they sell to the highest bidder...and if it ain't the U.S. of A., then they will sell to the higher bidder...
It's like waving a feather in front of a kitten...You can keep them amused for hours with the concept that all energy extracted here stays here...
Yeah, these guys really need some additional tax-breaks for incentives to make more profits....
Failed economics? The more natural gas on the open market, the less the consumer has to pay for it. Ever heard of supply and demand? The less drilling done in the states, the more the US consumer has to pay to have it delivered to to their home.
Selling natural gas and coal overseas helps our balance of trade.
Thomas Sowell: There are no solutions, just trade-offs.
Looks like more work for Americans to me. I'm not sure what the true unemployment figures are this month, but regardless of where you fall on that math problem it would be safe to say that the unemployment rate could stand to improve. I mentioned this on a related thread "Pipelines" but I think it's worth noting that the industry is projecting "a billion-dollar construction boom for these highly specialized facilities. ". That sounds like a lot of Americans jobs either in the construction or operating of these facilities.
I would have to agree that a billion dollars in construction and the export of this product could and should generate considerable revenues. I expect that since the Administration is very interested in reviving the economy AND getting Americans back to work...that they will be all over this one and will be facilitating this project just like they are the Keystone XL Pipeline.
Energy independence and more work. Where is the downside?
Soulshiner wrote: Supply and demand. The supply is surplus and the demand is down, so why are gas prices still above $3/gal?
might not fully explain but does a decent attempt of representing the different ingredients within all Five PADD's (Petroleum Administration for Defense Districts)....
http://www.eia.gov/pub/oil_gas/petroleu ... nepass.htm
The OP link talks about how we've been exporting gasoline since 2008 and we recently hit a record 430,000 barrels of gasoline exported a day. There is a huge supply of gasoline in the US and demand is down 10% from 2007 according to the Money article. I am questioning how gas prices can spike when there is enough of a supply to export almost half a million barrels a day. I also am questioning since there is such a supply, why the companies that are recording record profits are being given such huge tax breaks.
When you plant ice you're going to harvest wind. - Robert Hunter
Soulshiner wrote: Thanks for the link, very informative.
The OP link talks about how we've been exporting gasoline since 2008 and we recently hit a record 430,000 barrels of gasoline exported a day. There is a huge supply of gasoline in the US and demand is down 10% from 2007 according to the Money article. I am questioning how gas prices can spike when there is enough of a supply to export almost half a million barrels a day. I also am questioning since there is such a supply, why the companies that are recording record profits are being given such huge tax breaks.
"record profits"? Only in total amounts, not as a percentage of investment. Oil companies make less than Big Pharma and other industries.
Record oil profits? Strange that they should make more money under Obama than the oil men "W" and Cheney. Guess we know who Texaco will support in 2012.
Thomas Sowell: There are no solutions, just trade-offs.
Soulshiner wrote: Thanks for the link, very informative.
The OP link talks about how we've been exporting gasoline since 2008 and we recently hit a record 430,000 barrels of gasoline exported a day. There is a huge supply of gasoline in the US and demand is down 10% from 2007 according to the Money article. I am questioning how gas prices can spike when there is enough of a supply to export almost half a million barrels a day. I also am questioning since there is such a supply, why the companies that are recording record profits are being given such huge tax breaks.
The link discusses the timing or lack there of because of the way that this commodity is traded and future pricing. Your supply v. demand question is valid but not sure I could even begin to explain in laymans terms the economics behind it. One key item is that we need to better understand the different grade of product delivered to the surface, refining and then to market. I do know from talking to industry leaders in the Piceance (western slope) area that basic economics does not necessarily follow suit along with other factors involved with the raw product. Our scientist/geologists back in the '70s made the mistake of claiming that we are running out and they were dead wrong.
Where did the 430,000 barrels/day figure come from? The EIA provides weekly data on all types of fuel sources. During the week of 11/18 we imported 918,000 b/day of "motor gasoline blending components" and then during 11/25 we imported 575,000 b/day of the same. We exported 529,000 b/day during the last three weeks of November of "finished motor gasoline".
http://www.eia.gov/dnav/pet/pet_move_wk ... blpd_w.htm
Given the amount of people that I have seen working in the industry on the western slopes it still is relatively inexpensive especially when compared to other parts of the world. I realize that my above comment will be viewed unfavorably but it truly is amazing the amount of jobs it provides and you still get more BTU's per gallon than you will from a cup of Latte at Starbucks :VeryScared:
Failed economics? The more natural gas on the open market, the less the consumer has to pay for it. Ever heard of supply and demand? The less drilling done in the states, the more the US consumer has to pay to have it delivered to to their home.
