US has more oil than all of the middle east

[ga66mopar]

I feel like the current people in charge don't want the gas price to go down. They see high gas prices as a way to get the general public to buy junk like the volt. I work for a major power company and I can tell you everyone inside the company knows that solar power and wind power will never produce any amount of electricity to make a difference and has been nothing but a waste of the public money. But it's something we have to do to keep the goverment off of our backs. Thanks to the new supply of natural gas we are moving in that direction.
The truth is at this point the volt is powered by coal.

 

[Ron 73]

And i don't think it will go down, not to the point that it will resemble even a few years ago.. It might drop some around election time but its my opinion that will be short lived. Ive had a few say yes it will go down, i guess time will tell but seems weve been in this a few times, gas gos up, steady's some and then gos down a little, not where it was but down just enough to "satisfy" the general public. Im not afraid to be wrong, but i don't think i am with this.

 

[Red63440]

Since when was politics off limits on FBBO?

Anything goes, does mean, anything goes. But as far as I'm concerned there is a unwritten rule that Politics and Religion are not spoken unless there is a specified forum for such things.

With that being said, If I see a Political or Religious thread or post, I will delete it. Until there is a "Political Forum" on this board (it is being considered), right now, it is not allowed.

Please, continue posting, and have a great day!

__________________

 

[Bruzilla]

Here's the reality. Natural gas prices have fallen to a fraction of what they were 10 years ago due to more available natural gas.

http://www.energyandcapital.com/articles/natural-gas-prices-hit-10-year-low/2142

Natural gas prices have been falling ever since new drilling methods were discovered to release the glut of shale gas in the United States.

But it’s recently become evident just how much natural gas potential the U.S. has.

And this has led to the lowest natural gas prices in ten years

It's as simple as more supply than demand.

Sorry, but you can't compare a commodity with a limited market like natural gas to one with a vast market like oil. To put that in perspective, only about 25% of Americans make direct use of NG, and only about 30% make indirect use of NG (receive electricity from NG-fired plants, ride NG-powered busses, etc.). About 70% of Americans make direct use of oil, and 99% make indirect use.

Also, the market for direct users of NG isn't constricted like oil users. Someone using gas to heat or cook with can always switch to a fuel-oil/kerosense or electric system, which places additional pressures on NG prices.

These two factors make the NG market much, much more succecptible to price drops than the oil market.

 

[Bruzilla]

1st, Canada has a HUGE amount of tax built in to their gas, so there gas is always going to be high.

Canada's average tax (excise and sales) on the equivalent of a gallon of gasoline is 95.7 cents per gallon. The average tax here in the US is 47 cents. Canada's taxes are higher, but only by 48 cents... not exactly a HUGE amount.

2nd, Gas in Canada was $2.25 a gallon when it was $1.25 here so if they are with in .10 of us then that means there gas hasn't gone up near what ours has.

The average price for a gallon of gasoline in Alberta, right now, is $4.27 a gallon. Minus the extra 48 cents they pay in taxes, and the exchange rate, that means their gas is selling at $3.78 US, and I just filled up ay $3.85 today. Like I said, they are pumping all the oil they need, and have a surplus, and their gas costs within a dime/per gallon of what we're paying.

3rd, Does Canada have the refining capacity that we have? They can have all the oil in the world but if they can't refine it fast enough then the price is going to be high.

Canada doesn't need the refining capacity that we have as their demand is much less. But, Canada is a net exporter of refined petroleum products, meaning they refine 100% of their national requirements and have plenty left over for export.

When you look at the facts vice speculation, guesses, and assumptions, the reality is that Canada produces 100% of its national requirements for oil and refined oil products, exports huge amounts of both, yet their citizens pay the same as we do because those products are bought and sold on the same markets as ours.

The only places where you do not see these prices are where you have a government-controlled system, such as Saudi Arabia, Venezuela, etc., which controls oil and refined products used domestically, and has prices based on actual production costs (about $1 a gallon right now) and not market prices, which it sells their exportable oil for. Until we do the same, and get the markets out of the equation, we'll be paying the market price whether we buy oil from Texas, Pennsylvania, or Saudi Arabia.

 

[Benji]

The western US has LOTS of oil, but all the dipsticks are in Washington DC.

Benji