Mehrens: Good News For 2014
While it may not qualify as a silver lining, there was one bright spot to emerge from Washington D.CYou must Subscribe or log in to read the rest of this content.
While it may not qualify as a silver lining, there was one bright spot to emerge from Washington D.CYou must Subscribe or log in to read the rest of this content.
8 comments
Wow, 176 million barrels of oil! That’s a lot! Oh, wait, no, it isn’t.
The United States consumed a total of 6.87 billion barrels (18.83 million barrels per day) in 2011
http://www.eia.gov/tools/faqs/faq.cfm?id=33&t=6
This won’t make a dent in our dependence on foreign oil, only a fool would suggest otherwise. There simply isn’t enough oil in the US no matter how hard you squeeze it out of the land. We will rely on foreign oil just as we rely on cheap Chinese plastic garbage.
Hahaha,
Fits going goo goo over a oil field that is going to supply the US for ten days?
God bless BP!!
And he makes no mention of how much it is going to cost to clean up after all the frackingl
Smirks, I’m not going to get into a long discussion about how wrong you are about US oil resources, but I work in the industry. Even we are blown away by what we now know is there. We are sitting on an ocean of oil all across the country. We now know the Permian is bigger than we ever imagined, the Bakken is just what we hoped, and California is practically floating. Go sell your uninformed crap somewhere else.
What bullshit!
Google search terms: U.S. oil exports
I don’t know about you folks, but when I pull to the gas pump, I don’t fill up with crude oil. I fill up with gasoline.
The U.S. is a net exporter of motor fuel
http://www.eia.gov/dnav/pet/pet_move_exp_dc_NUS-Z00_mbblpd_a.htm
Resource extraction will create energy jobs, but can someone explain how America achieves energy independence by shipping our energy sources out of the country?
Also, you can flood the streets with oil, but you need refining capacity to realize it at the gas pump.
http://www.eia.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm
Monthly and Annual U.S. Operable Oil Distillation Capacity
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MOCLEUS2&f=M
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mocleus2&f=a
The above graphs indicate that in almost 30 years since 1985, capacity has increase from 15.6 million barrels/day to 17.8 million barrels a day, or only approximately 15 percent.
It appears that America lack the refining capacity to become energy independent. Oil prices follow global supply and demand, not domestic American supply and demand. If there is market for American crude and fuel, the prices will remain high.
US gas/diesel use is down due to economy (but increasing a bit as things improve slowly). Diesel use in Europe is higher due to more diesel vehicles, demand is high and there is a lack of refining capacity. Gasoline refining in other places is rather low too. US Refiners therefore refine diesel and gasoline from US crude and ship it out to make money. The Canadian oil (Keystone pipeline) would move to the Gulf and be refined into fuels or made into chemicals and shipped out too. (This makes more money as the market is higher priced there) There are apparently some legal issues with increasing the exports, and those might decline as our economy improves and local demand increases.
The US is on the cusp of being energy independent due to natural gas and petroleum drilling technology improvements. A good part of our imports are from Mexico and Canada, not much from the ME and those could probably be done away with altogether once some US policies are altered. The Sods are most concerned about this turn of events.
Supply and demand and refining and pricing are also subject to various policy and legal constraints in the US as well as world issues, so all that is sorta juggled in the various prices. Right now the petroleum prices in OK an TX are lower than world prices (due to large supplies), but exporting is not an option. Refiining capacity is limiting taking advantage of that differential.
There are three zeros missing off both Fits and Foxes story – wanna guess where the three zeros go?