NEW USGS FIGURES FOR BAKKEN OIL

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oldbabyboomer

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oldbabyboomer
Anybody with a crystal ball out there? Last year I dropped out of a Cherokee partnership because I was retiring and the price of gas in our area was close to $6.00 per gallon. The USGS announced last month a huge change in oil reserves because of Bakken oil in the Dakotas. I've read that shock waves were sent around the globe. US might be self sufficient by 2025? and net exporter in just a few years? Will price of gas be dropping in US soon? If the EPA won't let us build new refineries, how can that be. Any thoughts? Would like to get back into flying if gas prices drop back down to around $3to 4 per gallon.
 
I doubt prices will be going down any meaningful amount in the near/mid future, most of the hike we've seen over the past decade is just gas catching up to inflation anyways.
 
e.pie said:
I doubt prices will be going down any meaningful amount in the near/mid future, most of the hike we've seen over the past decade is just gas catching up to inflation anyways.
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Or rather, the other way around.
 
The price of avgas won't be dropping any time soon. Oil is a worldwide commodity so the world market sets the price. All of the refined products will reflect the price of the feedstock.
 
In round Texas numbers . . . its a shltload of oil up there . . . .
 
I agree...the gas price rise is more the result of our currency being destroyed than anything happening in oil itself.
 
oldbabyboomer said:
Anybody with a crystal ball out there? Last year I dropped out of a Cherokee partnership because I was retiring and the price of gas in our area was close to $6.00 per gallon. The USGS announced last month a huge change in oil reserves because of Bakken oil in the Dakotas. I've read that shock waves were sent around the globe. US might be self sufficient by 2025? and net exporter in just a few years? Will price of gas be dropping in US soon? If the EPA won't let us build new refineries, how can that be. Any thoughts? Would like to get back into flying if gas prices drop back down to around $3to 4 per gallon.
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The idea of "energy independence" is a fallacy unless you have nationalized oil companies, nationalized resources, and other regulations like price controls and limits on arbitrageurs. Oil is a globally traded commodity and there is a global pool of supply and demand, it isn't priced in a vacuum. Thinking of resources as part of prized territories on a game of Risk board is only done by people still living in the Cold War (i.e. the Russians) and politicians that like to use the term "energy independence" to enamor stupid voters.
 
Clark1961 said:
The price of avgas won't be dropping any time soon. Oil is a worldwide commodity so the world market sets the price. All of the refined products will reflect the price of the feedstock.
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Without the Keystone XL pipeline approved, that oil will be very expensive to refine....... And the current administration knows it......


Follow the money......................:mad::mad2::mad2::mad2::(
 
N801BH said:
Without the Keystone XL pipeline approved, that oil will be very expensive to refine....... And the current administration WANTS IT THAT WAY.....


Follow the money......................:mad::mad2::mad2::mad2::(
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Just a nudge to your comment...
 
Whether or not Bakken oil is refined into domestic product, the fact that it replaces purchase of foriegn crude helps our trade deficit. The economy is improving, and interest rates have only one way to go. Looking at the index charts, the dollar has been on a tear upward since February, and is now back to a historical positive correlation with the S&P.

Europe is weak and easing. So is Japan. China is less robust than they claim.

Has all the earmarks of a set-up for a long bull run for the greenback.
 
turbofan said:
The idea of "energy independence" is a fallacy unless you have nationalized oil companies, nationalized resources, and other regulations like price controls and limits on arbitrageurs. Oil is a globally traded commodity and there is a global pool of supply and demand, it isn't priced in a vacuum. Thinking of resources as part of prized territories on a game of Risk board is only done by people still living in the Cold War (i.e. the Russians) and politicians that like to use the term "energy independence" to enamor stupid voters.
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^ You got it.

I overheard some hicks in McDonalds talking about 'Drill Here, Drill Now!'. They seemed to think that will bring gas prices down a couple dollars.
 
Oil is a global commodity, but there are transportation and processing costs involved in buying and shipping oil here from other places.
Oil produced here WILL be cheaper, once the overall cost of production, transportation, refining, and distribution are factored in.

That said, the simplest and quickest way to reduce gas prices would be to allow the construction of new refineries, and reducing the number of specialty blends required by the EPA around the country.
 
There's something unusual going on with oil and fuel prices - diesel is 10 to 35 cents cheaper than unleaded here. Haven't seen that in years. Combination of diesel dropping a few cents and unleaded jumping up a quarter or so.
 
gkainz said:
There's something unusual going on with oil and fuel prices - diesel is 10 to 35 cents cheaper than unleaded here. Haven't seen that in years. Combination of diesel dropping a few cents and unleaded jumping up a quarter or so.
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Interesting..... unleaded is 3.50 or so here.... Diesel is 4.10.. And we are just a few hundred miles apart..:confused::confused:
 
News flash. The US is a net fuel exporter already. Note I said FUEL exporter. The US has been declining in net fuel use for more than a decade. Thanks to better fuel economy, higher prices, and a poor general US economy, consumption in the nation is down.

HOwever, consumption by our friends in China and many other nations is up, in some case significantly. This offsets the lower use in the US when refiners, and bundlers of fuel export out of the US.

For those who think we should drill in this country, I can't see why that is useful. Let's drain off the ME oil while we can. Once it's gone, they'll go back to the 5th century shytehole they always were. Then we can start using our oil, and eff them.
 
Come to MN unleaded in $4.25 and Diesel is $3.85
Unleaded jumped up around $1 in last week. Something refineries maintenance and special blends.
 
docmirror said:
For those who think we should drill in this country, I can't see why that is useful. Let's drain off the ME oil while we can. Once it's gone, they'll go back to the 5th century shytehole they always were. Then we can start using our oil, and eff them.
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I have a friend that works for an oil company that says just about the same thing.
 
ron22 said:
I have a friend that works for an oil company that says just about the same thing.
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Yup, it's a damn shame so much of our oil is under their sand.
 
gkainz said:
There's something unusual going on with oil and fuel prices - diesel is 10 to 35 cents cheaper than unleaded here. Haven't seen that in years. Combination of diesel dropping a few cents and unleaded jumping up a quarter or so.
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My understanding has been that the two largest consumers of diesel fuel in the U.S. are the Navy and the railroads. Railroads allegedly account for 6% of U.S. consumption, but BNSF railroad recently announced plans to switch its locomotives from diesel to natural gas, which would reduce diesel demand:

http://johnhanger.blogspot.com/2013/03/buffetts-railraod-americas-second.html
 
Re: Hayden's Air Tour

Sorry for the quality of the picture. These tankers are anchored at the mouth of Galveston Bay. Notice the freeboard of the tankers in the background. These foreign flagged vessels are waiting to be loaded with crude, LPG or refined product for export.
gal 006.JPG
 
Sorry for the quality of the picture. These tankers are anchored at the mouth of Galveston Bay. Notice the freeboard of the tankers in the background. These foreign flagged vessels are waiting to be loaded with crude, LPG or refined product for export.
 
Rex Bueller said:
Sorry for the quality of the picture. These tankers are anchored at the mouth of Galveston Bay. Notice the freeboard of the tankers in the background. These foreign flagged vessels are waiting to be loaded with crude, LPG or refined product for export.
Click to expand...


Are you talking about the red tanker stuck in the sand on the beach or the ones anchored off shore ??:dunno::D
 
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