TX Oil Production Soaring

[Bruzilla]

http://fuelfix.com/blog/2013/07/10/texas-oil-surges-to-highest-level-since-1984/?cmpid=hpts

Just reading this piece on how Texas is now pumping more oil than a lot of OPEC countries... and yet the prices aren't reflecting increased production. That's because all that West Texas Intermediate Crude (WTIC) used to only be sold on US commodities markets, and was regulated by the Federal Commodities Trade Commission until late 2006 when the funsters in Congress decided to change the law and allow WTIC to be traded on foreign markets. Now it doesn't matter how much oil Texas pumps since it's all priced based on the global price of oil. :angryfire:

 

[Budnicks]

Yeah North Dakota too, they're freaken' boooombing, it's all on private lands, private permits, private investments, private wells, privately owned companies, employing people from every state in the nation.... All started under the Bush administration, just now, we're seeing the fruits of all their hard labor & ingenuity/investment's... Even thou it's {the oil} going to a global market, to be traded, it's going in Americans bank accounts for the most part, with no thanks or help from/to the current WH administration, more like trying to hinder their progress, but they will take the claim for the boom in oil production/global supply, that's for damn sure... sorry didn't want to make it political, but it actually is....

 

[jessipup]

sorry didn't want to make it political, but it actually is....
If it is take it where it belongs.
Personal responsability!

 

[Moparsmitty]

It's exactly like Bruzilla says, it doesn't matter where the crude is pumped out of the ground or even where it is refined into a finished product. In a global market the oil companies are going to take the crude oil, gasoline, jet fuel or whatever and sell it wherever they can get the most money for it. The main reason that there is any difference in price from one country or state to the next is taxes or subsidies.
A lot of people think that if the Keystone pipeline is built that it will lower the cost of gasoline in the US. That pipeline might lower some prices in the midwest by a few cents, but I seriously doubt it will have any affect on prices nationwide. Most of that product will end up on the gulf coast to be refined and sent to overseas markets (mostly China and India) where there is stronger demand. Unless the government steps in to stop the export of our resources ( like that's going to happen) we will always be paying world market prices for our energy.
I personally don't care if they build the Keystone pipeline or not, but I don't believe for a minute that it will make our gas prices any cheaper.
As usual, JMHFO.

 

[snakeoil24]

Yeah North Dakota too, they're freaken' boooombing, it's all on private lands, private permits, private investments, private wells, privately owned companies, employing people from every state in the nation.... All started under the Bush administration, just now, we're seeing the fruits of all their hard labor & ingenuity/investment's... Even thou it's {the oil} going to a global market, to be traded, it's going in Americans bank accounts for the most part, with no thanks or help from/to the current WH administration, more like trying to hinder their progress, but they will take the claim for the boom in oil production/global supply, that's for damn sure... sorry didn't want to make it political, but it actually is....

Its all political the nudnick in the white house drags the pipeline and we loose jobs.

- - - Updated - - -

It's exactly like Bruzilla says, it doesn't matter where the crude is pumped out of the ground or even where it is refined into a finished product. In a global market the oil companies are going to take the crude oil, gasoline, jet fuel or whatever and sell it wherever they can get the most money for it. The main reason that there is any difference in price from one country or state to the next is taxes or subsidies.
A lot of people think that if the Keystone pipeline is built that it will lower the cost of gasoline in the US. That pipeline might lower some prices in the midwest by a few cents, but I seriously doubt it will have any affect on prices nationwide. Most of that product will end up on the gulf coast to be refined and sent to overseas markets (mostly China and India) where there is stronger demand. Unless the government steps in to stop the export of our resources ( like that's going to happen) we will always be paying world market prices for our energy.
I personally don't care if they build the Keystone pipeline or not, but I don't believe for a minute that it will make our gas prices any cheaper.
As usual, JMHFO.

THe Pipeline only provides jobs. If you owned hte olil company you would sell it to the highest bidder.

 

[Ghosty]

+1 Moparsmitty, that's exactly right. As for Keystone, the only hindrance I believe is the Administration (and eco groups) wanting actual good research on WHERE exactly it's going to be routed (apparently that's still in flux somewhat), and proper environmental impact and safety reviews, first. Considering what happened in past disasters, it's a viable concern, imho. I'm definitely all for the pipeline being built ASAP, if it's really beneficial to U.S. jobs, energy production/x-port, & OUR economy. As long as the proper safeguards are in place.

 

[Bruzilla]

Sorry guys, but all the pipeline in the World isn't going to lower prices a nickel the way the current energy market is set up. Every drop of oil that's pumped or shipped is pre-sold as a future about three months before that oil breaks the surface of the ground. The price that it's sold for is controlled by speculators within the futures markets, not by the government, or the oil companies, or anyone else. Simple supply and demand pressures from consumers and producers went out of this market decades ago. The supply and demand pressures now stem from how many investors are entering or leaving the futures market with their dollars.

Speaking of the Keystone, I checked the prices for gasoline in Alberta, Canada... the place where all that oil is coming from... and today's average price is $3.09 with no taxes added, so it's selling for about the same average price as in the US. Canada, which pumps enough oil to meet 100% of their own needs, and enough on top of that to be a major exporter, is paying the same for gas as we are. Why? Because every drop of their oil is sold as futures on international commodities exchanges just like ours, so increasing supplies locally doesn't matter a wit. We now pay the same for gas whether it's made from oil pumped in Texas, or shipped from Saudi Arabia.

 

[Cranky]

Yup, prices won't move much if any but at least it means jobs for US....