Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

[Londo_Jowo]

If the Australians can manage to keep the ilk of the likes like Jowo and Lopped away maybe they have a shot, otherwise they will continue to get raped like Americans by the Oil Thugs

It's all good McOwned, Linc Energy LTD is already a client of the company for whom I work. Looks like the company will be selling yet more equipment in Australia in the upcoming year/s.

 

[dmcowen674]

Must have more Sequester

3-4-2013

http://news.yahoo.com/oil-falls-us-government-cuts-051004492.html

Oil falls as US government cuts spending



The price of oil fell Monday after political leaders in Washington failed to stave off automatic cuts in government spending that could hurt the U.S. economy.


Benchmark oil for April delivery was down 20 cents to $90.44 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $1.37 to close at $90.68 a barrel on the Nymex on Friday, its lowest close this year.



Brent crude, used to price many kinds of oil imported by U.S. refineries, fell 17 cents to $110.23 a barrel on the ICE Futures exchange in London.

 

[dmcowen674]

Check this bullshit out



3-4-2013

http://www.cnbc.com/id/100515977?__source=yahoo|headline|quote|text|&par=yahoo

Oil Prices Vulnerable Ahead of US Jobs Data



Oil consumption in the U.S. posted an unexpected drop in December, pulling total demand for 2012 to the lowest annual level since 1996




Meanwhile, the boom in shale-oil production lifted U.S. crude oil output by 14.6 percent last year to a 17-year high

"Investors can no longer avoid the fundamentals of rising inventories and record production in the U.S. as the shale boom continues to alter the long term dynamics of the oil industry," Andrew Su, CEO of Compass Global Markets wrote in a report on Monday. "We expect that (weekly U.S.) stockpiles will once again increase and add further pressure on the prices.

 

[OBLAMA2009]

i noticed gas here went from 4.30 last time i noticed to 4.19

 

[Londo_Jowo]

Down another $0.02/gal to $3.55/gal this morning.

http://www.texasgasprices.com/Shell_Gas_Stations/Richmond/113096/index.aspx

 

[Londo_Jowo]

Check this bullshit out



3-4-2013

http://www.cnbc.com/id/100515977?__source=yahoo|headline|quote|text|&par=yahoo

Oil Prices Vulnerable Ahead of US Jobs Data



Oil consumption in the U.S. posted an unexpected drop in December, pulling total demand for 2012 to the lowest annual level since 1996




Meanwhile, the boom in shale-oil production lifted U.S. crude oil output by 14.6 percent last year to a 17-year high

"Investors can no longer avoid the fundamentals of rising inventories and record production in the U.S. as the shale boom continues to alter the long term dynamics of the oil industry," Andrew Su, CEO of Compass Global Markets wrote in a report on Monday. "We expect that (weekly U.S.) stockpiles will once again increase and add further pressure on the prices.

Why is it bullshit? Will it make your predictions nearly impossible to reach this year?

I would say lower priced oil would be a good thing.

 

[dmcowen674]

Here is a list of the Oil Thug Billionaires that are raping and pillaging America:

3-4-2013

http://www.forbes.com/sites/christo...as-oil-and-gas-billionaires/?partner=yahootix

America's Oil And Gas Billionaires



No one has made a greater fortune from the North American Oil and Gas Boom than Harold Hamm.



The founder and CEO of Continental Resources is responsible for cracking the code of the Bakken — the vast formation of oil-bearing rock that sits beneath much of North Dakota and Montana. With his 72% ownership stake in publicly traded Continental, Hamm is now worth $11.3 billion, making him the 90th richest person on the planet, according to Forbes newly released annual ranking of the world’s billionaires.




The Bakken has truly disrupted not just the American oil market, but the world’s. The amount of oil flowing out of the Bakken has soared from 100,000 bpd in 2006 to more than 550,000 bpd now. Hamm and many other analysts think that the potential is there for output to go to 1 million bpd, making it one of the world’s biggest producing areas, virtually overnight.

In the oil and gas industry the only bigger fortune than Hamm’s is that of the Koch Brothers. But although Charles and David Koch are tied for 6th in the world, with fortunes of $34 billion each, the bulk of their fortunes are not in the operation of oil and gas fields, but in massive refineries, pipelines and chemicals plants.

After Hamm on the list of American oil and gas billionaires comes Phil Anschutz and George Kaiser, with fortunes of $10 billion each (tied for 109th).

Then we have Richard Kinder, the CEO and founder of pipeline behemoth Kinder Morgan. Kinder comes in at 112th place on the list, with $9.8 billion. Kinder Morgan owns 75,000 miles of pipeline and 180 storage terminals capable of handling 2.5 million barrels of oil and 55 billion cubic feet of gas a day. A former Army captain, he founded Kinder Morgan in 1997 with his friend William Morgan, after quitting as president of Enron the year before.

Ray Lee Hunt at $5.6 billion, inherited a fortune from his wildcatter father H.L. Hunt and has been building on it ever since with LNG projects in Peru and Yemen, a refinery in Alabama and big acreage across the United States. Last year Hunt Oil even made a big find in Iraq’s Kurdistan region.

Jeffrey Hildebrand of privately held Hilcorp Energy comes in at $5.5 billion (219th). In 2011 Hildebrand turned a $100 million investment in the Eagle Ford shale of Texas into a $1.4 billion payday with a sale to Marathon Oil.

Dannine Avara, Scott Duncan, Milane Frantz and Randa Williams are the four children of Dan Duncan, founder of pipeline giant Enterprise Products Partners.

Robert Rowling of Dallas owns the Omni Hotels and Golds Gym chains, but still has a sizable portion of his fortune in oil and gas operations such as Tana Exploration. All together his fortune is $4.9 billion (256th).

Trevor Rees-Jones is at $4.5 billion (274th). Rees-Jones first worked as a bankruptcy lawyer, and then switched to oil and gas exploration.

Robert Holding of Utah owns Sinclair Oil and has a fortune of $3.2 billion (418th). Known by his middle name, Earl, Robert Holding parlayed a stake in Little America motel in Wyoming into a hospitality empire including ski resorts Sun Valley and Snowbasin and the Grand America hotel in Salt Lake City. He bought Sinclair Oil in the 1970s, which drills for oil and gas and operates refineries and pipelines. Holding is said to be among the largest landowners in America, with some 400,000 acres across the west.

John Arnold, the natural gas trading wunderkind retired from the hedge fund game last year at age 38 having amassed a fortune of $2.8 billion. He got his start at Enron and is said to have made $750 million in trading profits during the last days of that company in 2001.

Kelcy Warren, at $2.7 billion (523rd) is a pipeline magnate who controls Energy Transfer Partners, which he grew last year with the acquisiton of Sunoco, with its 4,900 retail outlets in 23 states, for $5.3 million. That followed the purchase of fellow billionaire George Lindemann’s Southern Union pipeline company for more than $5 billion the month before. Now he’s streamlining the company. Warren’s partner in founding Energy Transfer Partners, Ray Davis, is also a billionaire, with $1.6 billion.

The Bass brothers of Forth Worth own Bass Operating Company and a host of other investments. They are notoriously private and tough to pin down, so we suspect that we’re low-balling their fortunes. Robert is estimated at $2.7 billion (523rd), Ed and Lee at $2 billion each (730th), while we’ve bumped eldest brother Sid down to $1.8 billion (825th) after his divorce from wife Mercedes.

 

[dmcowen674]

Obviously the reporter of this article suks at Internets search 101 and has not seen this thread:

3-4-2013

http://finance.yahoo.com/news/us-oi...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

US Oil and Gas Boom Takes Many by Surprise



The rapid growth in U.S. oil production has surprised even industry insiders.


Forecasts that once sounded far-fetched are becoming reality. The oil production boom had been expected, but the magnitude of change in such a short period of time is a surprise.



U.S. oil production is at its highest level in 20 years, while at the same time U.S. oil demand is at a 17-year low.

The U.S. is expected to produce 7.3 million barrels per day this year, up from 6.4 million in 2012

Imports totaled about 7.7 million barrels per day in the month of February, down 1.2 million barrels per day from he same time last year.

U.S. oil demand for 2012 was 18.56 million barrels per day, down 2 percent from the year earlier and its lowest annual level since 1996, according to the EIA. Oil demand fell every month last year, except for May.

 

[Londo_Jowo]

Looks like McOwned is pissed that his drive for $5 is going to be derailed by increased oil production in the US.

Outlook for sales and services looks good for years to come for the company for whom I work.

 

[Doppel]

Looks like McOwned is pissed that his drive for $5 is going to be derailed by increased oil production in the US.

Outlook for sales and services looks good for years to come for the company for whom I work.

Has Dave ever said why he enjoys people paying more for gas?

 

[Londo_Jowo]

Has Dave ever said why he enjoys people paying more for gas?

I think he wants people to be as miserable as he is in life.

 

[Engineer]

Instead of beating on Dave, can either of you two explain why we are at 2 decade lows in usage and 2 decade highs in production yet are at an ALL TIME HIGH for this time of year on gasoline prices?

The American consumer is being raped and the economy is sputtering if not sagging because of it.

I guess it's supply and demand....until it isn't.

 

[Londo_Jowo]

Instead of beating on Dave, can either of you two explain why we are at 2 decade lows in usage and 2 decade highs in production yet are at an ALL TIME HIGH for this time of year on gasoline prices?

The American consumer is being raped and the economy is sputtering if not sagging because of it.

I guess it's supply and demand....until it isn't.

So refineries being down for maintenance and/or repair doesn't affect the retail gas supplies. McOwned's links clearly state Oil production is high, not gas production.

 

[Engineer]

So refineries being down for maintenance and/or repair doesn't affect the retail gas supplies. McOwned's links clearly state Oil production is high, not gas production.

We are 80% utilization after the shutdowns. Again, why is it so high?

If you can't say the magical "speculators" on oil and wholesale markets, I don't know what to tell you.

Dave is right. There is no shortage of gasoline in the US and right now, there is no shortage of money for the speculators who are buying and selling at a profit and never taking possession of anything other than those profits.

 

[Londo_Jowo]

Unleaded gas contract prices are dropping daily as the supplies increase.

http://money.cnn.com/data/commodities/

 

[Engineer]

Unleaded gas contract prices are dropping daily as the supplies increase.

http://money.cnn.com/data/commodities/

There was no shortage to begin with. Supplies are plentiful and demand has been dropping for years now.

Now that we have "increasing supplies", why the "trickle down" in prices? Why not a waterfall down in prices the same way that they went up?

From your own link:

(Oil = lowering trend....gas = rising trend).
Your only goal here is to beat on Dave. You post $0.02 cent drops here and there but forget to mention the $0.30 to $0.40 price hikes that occurred during the big run up. It's all bullshit and Dave is exactly right about it being bullshit.

 

[Londo_Jowo]

There was no shortage to begin with. Supplies are plentiful and demand has been dropping for years now.

Now that we have "increasing supplies", why the "trickle down" in prices? Why not a waterfall down in prices the same way that they went up?

From your own link:

(Oil = lowering trend....gas = rising trend).
Your only goal here is to beat on Dave. You post $0.02 cent drops here and there but forget to mention the $0.30 to $0.40 price hikes that occurred during the big run up. It's all bullshit and Dave is exactly right about it being bullshit.

You chart isn't specific enough, please let us know how much of that is winter blend and how much is summer blend. As well as special blend for other regions/cities in the US.

The gas prices where I live increased due to several refineries being offline in the Houston region. Now these same refineries are just now coming back on line the prices are dropping at the same rates that they were moving when they were increasing. We're also at the point summer blend can be sold here, I seriously doubt that's the case for other regions in the US.

 

[Born2bwire]

We are 80% utilization after the shutdowns. Again, why is it so high?

If you can't say the magical "speculators" on oil and wholesale markets, I don't know what to tell you.

Dave is right. There is no shortage of gasoline in the US and right now, there is no shortage of money for the speculators who are buying and selling at a profit and never taking possession of anything other than those profits.

Because at this point the gasoline produced in the US is for the global market, not exclusive to the US. While demand in the US is down severely, there are have been growing demands in other countries like India and China. If the gasoline being produced at US refineries was only restricted to the United States, then it would call for a reduction of price for all of the gasoline to be consumed in this market. But the rising demand in other countries now means that profits can be made by striking a balance between supplying the US and the foreign market. We already know this is happening because we are exporting large quantities of gasoline. This isn't such a bad thing for us because it does mean that there is an injection of wealth coming back into the US.

Look at it this way, let's say at $3.50 /gal (excluding taxes, etc.), the US market will consume 1 billion gallons of petrol a month and at $3.00, 2 billion gallons. At the same time, China will consume 500 million at $3.50, 1 billion at $3.00. However, we can produce 2 billion gallons a month. We need to sell all 2 billion gallons so it makes sense to strike a balance between supplying both the US and Chinese markets (after taking into consideration the transportation costs to sending it to China) that creates a total demand for 2 billion gallons between both markets while charging the same price. And if we are not charging a fair price to what's being sent to China, then China or other foreign enterprises can build their own refineries to supply the Chinese market, which would mean that US refineries would have to decrease the price of gasoline to the US to drive up US demand to make up the loss exports.

 

[DucatiMonster696]

Instead of beating on Dave, can either of you two explain why we are at 2 decade lows in usage and 2 decade highs in production yet are at an ALL TIME HIGH for this time of year on gasoline prices?

The American consumer is being raped and the economy is sputtering if not sagging because of it.

I guess it's supply and demand....until it isn't.

Decrease in demand has a habit of driving up prices. If we use less oil than that means the oil we pump out is sold overseas where other nations are willing to purchase said oil at a higher price and which will in turn drive up the price here at home.

In addition as we devalue our currency to try to dig ourselves out of our economic mess we see that we are unable to afford more of what we need due to the value of our currency deceasing and thus providing less in return when it comes to what we can or need to purchase.

Furthermore oil is a global commodity and with nations like China (which is awash in US debt dollars), Brazil and India (aka G20 nations), etc driving the demand world wide even as many 1st world economies are s slumping, prices for oil will naturally be affected by this increase in demand elsewhere and thus the price of oil will rise as a result. Thus even as some G10 (group of 10 industrialize nations along with few others) economies have yet to climb out of their economic debt holes the demand for oil is being lead by many emerging economies like again China, India, and Brazil, etc.

Then you have to factor in OPEC nations which have stated their intentions of decreasing their own production due to last year's supply glut and reserve capacity increases of the biggest consumers of oil, i.e. China, India and the US. And yes speculation also plays a role but it is not the single driving aspect of the market and price for oil every time you see a price spike. So there are a host of reasons why the price of oil would climb even as we use less and less and production in the US climbs but is later sold to overseas emerging markets where economic demand is strong for oil.

 

[Londo_Jowo]

According to the EIA prices are actually lower than they were last year at this time.

http://www.eia.gov/petroleum/gasdiesel/

 

[Engineer]

According to the EIA prices are actually lower than they were last year at this time.

http://www.eia.gov/petroleum/gasdiesel/

That has just changed in the last week or so (but you knew that).

 

[Engineer]

Because at this point the gasoline produced in the US is for the global market, not exclusive to the US. While demand in the US is down severely, there are have been growing demands in other countries like India and China. If the gasoline being produced at US refineries was only restricted to the United States, then it would call for a reduction of price for all of the gasoline to be consumed in this market. But the rising demand in other countries now means that profits can be made by striking a balance between supplying the US and the foreign market. We already know this is happening because we are exporting large quantities of gasoline. This isn't such a bad thing for us because it does mean that there is an injection of wealth coming back into the US.

Look at it this way, let's say at $3.50 /gal (excluding taxes, etc.), the US market will consume 1 billion gallons of petrol a month and at $3.00, 2 billion gallons. At the same time, China will consume 500 million at $3.50, 1 billion at $3.00. However, we can produce 2 billion gallons a month. We need to sell all 2 billion gallons so it makes sense to strike a balance between supplying both the US and Chinese markets (after taking into consideration the transportation costs to sending it to China) that creates a total demand for 2 billion gallons between both markets while charging the same price. And if we are not charging a fair price to what's being sent to China, then China or other foreign enterprises can build their own refineries to supply the Chinese market, which would mean that US refineries would have to decrease the price of gasoline to the US to drive up US demand to make up the loss exports.

I know that we are exporting but at the expense of the US economy. All so a few gasoline refineries and the "shareholders" can get a much bigger return, again at the expense of the US economy.

I really hope that the "greed" will push more and more alternatives to the point that the American public can tell the gasoline and oil industries to kiss their collective ass, although with the rising oil production, at least we are starting to be able to tell OPEC to kiss our collective ass.

 

[Londo_Jowo]

That has just changed in the last week or so (but you knew that).

Of course I knew that, just like a I knew that in the past two weeks most of the refineries in the Houston area are back in full operation.

Imagine that, more available gasoline equals lower prices at the pump.

 

[Engineer]

Of course I knew that, just like a I knew that in the past two weeks most of the refineries in the Houston area are back in full operation.

Imagine that, more available gasoline equals lower prices at the pump.

But again, there never was any kind of shortage whatsoever. The refineries, wholesalers, "speculators" are trying to see how far they can push the US economy before it breaks down. People now see $3.50 gas as CHEAP. Dave is right in that we have become brainwashed. I see it as bullshit and will call it as such. You guys can cheerlead it all you want.

 

[Born2bwire]

I know that we are exporting but at the expense of the US economy. All so a few gasoline refineries and the "shareholders" can get a much bigger return, again at the expense of the US economy.

I really hope that the "greed" will push more and more alternatives to the point that the American public can tell the gasoline and oil industries to kiss their collective ass, although with the rising oil production, at least we are starting to be able to tell OPEC to kiss our collective ass.

If the refineries here are artificially moving gasoline to other countries, then they have to do so in a manner that would inflate the price of gasoline in the US with respect to the global market price. In that situation, then foreign refineries could come in and undercut the US refineries and supply the US since they could sell gasoline to the US at a higher price than locally.