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(Reuters)   Due to fracking, the second biggest oil boom in US history now has the USA producing more petroleum than Saudi Arabia. While China overtakes the USA for importation   (reuters.com) divider line 81
    More: Cool, Saudi Arabia, oil boom, United States, crude oil, Bakken formation, natural gas liquids  
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1652 clicks; posted to Business » on 16 Oct 2013 at 12:20 AM (38 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-10-16 12:22:57 AM
This will infuriate Obama
 
2013-10-16 12:23:02 AM
Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.
 
2013-10-16 12:23:50 AM
And yet gas is still over $3/gallon everywhere. They've figured out we'll pay that, and you'll never see it below $2.50 again no matter how much is produced.

I can't wait until we start exporting our natural gas, so I can pay three times as much on my utility bill too.
 
2013-10-16 12:25:52 AM
Stop buying gas! It's simple!
 
2013-10-16 12:27:13 AM
So my faucet water is flammable, but gas is less than $4/gallon.   Whooooo!  Who should I vote for?
 
2013-10-16 12:30:30 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


buzzcut73: And yet gas is still over $3/gallon everywhere. They've figured out we'll pay that, and you'll never see it below $2.50 again no matter how much is produced.



Both of these.  It wouldn't surprise me at all if the whole thing was a conditioning plot to begin with. That the oil industry deliberately avoided using the technology until people were conditioned to the higher prices.
 
2013-10-16 12:30:54 AM
You know what we really need?

To export more oil.

Via the Keystone XL pipeline!
 
2013-10-16 12:33:52 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


Commodities prices are established by traders, not by producers.
 
2013-10-16 12:42:22 AM

farkstorm: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

Commodities prices are established by traders, not by producers.


I am curious. What, exactly, do they base the price of gas on? Pure demand? Doesn't make sense. What is it?
 
2013-10-16 12:58:08 AM

worlddan: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

buzzcut73: And yet gas is still over $3/gallon everywhere. They've figured out we'll pay that, and you'll never see it below $2.50 again no matter how much is produced.


Both of these.  It wouldn't surprise me at all if the whole thing was a conditioning plot to begin with. That the oil industry deliberately avoided using the technology until people were conditioned to the higher prices.


It's $2.89 in central Missouri right now, but the downside is you have to be in central Missouri to buy it.
 
2013-10-16 01:03:44 AM
Don't get confused.  The USA has been the largest exporter of refined gasoline/petrol for at least a year.  China is overtaking the USA in consumption of petroleum.  Those things can't be measured against each other in the same units...
 
2013-10-16 01:05:16 AM

buzzcut73: And yet gas is still over $3/gallon everywhere. They've figured out we'll pay that, and you'll never see it below $2.50 again no matter how much is produced.

I can't wait until we start exporting our natural gas, so I can pay three times as much on my utility bill too.


I saw gas for $2.98 today.
 
2013-10-16 01:08:58 AM

Marcus Aurelius: You know what we really need?

To export more oil.

Via the Keystone XL pipeline!


But it's not our oil that's being exported. We get all the risk and none of the benefits. Yay!
 
2013-10-16 01:13:06 AM
When I graduated college, there was no "fracking" instead there was the hope and promise that someday the producers would figure out how to get the oil out of shale.

It's sort of interesting to see what happened.

I still don't understand why fracking relies on such a witches brew.
 
2013-10-16 01:20:13 AM
It's always amusing to hear Americans complain about Petrol prices, in Australia our petrol costs twice as much, if we're lucky.
 
2013-10-16 01:25:54 AM

Goimir: Stop buying gas! It's simple!


Seriously planning on an all-electric vehicle. Cost-value be damned.
 
2013-10-16 01:29:29 AM
Didn't England export food during the potato famines...this can't be a good repeat
 
2013-10-16 01:38:15 AM
and yet Gas in still expensive, and our water supply is slowly being destroyed by fracking byproduct.

/stop commodity trading of oil
//all of it
 
2013-10-16 01:47:32 AM

sammyk: Why are we paying more that $2/gallon for gas?


http://www.fark.com/comments/7976795/Due-to-fracking-second-biggest-o i l-boom-in-US-history-now-has-USA-producing-more-petroleum-than-Saudi-A rabia-While-China-overtakes-USA-for-importation

Asked and answered in the headline, there, sport.
 
2013-10-16 02:00:05 AM
Anyone seen gasland 2 yet?
 
2013-10-16 02:01:29 AM

farkstorm: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

Commodities prices are established by traders, not by producers.


Man. What a ripoff. If only there were some sort of group that countries who produce a lot of oil could form to manipulate supply and affect prices. An organization, if you will, for petroleum-exporting countries. I'll have to start up plans for something like that. Something tells me that quite a few people will want in on this brand-new concept of supplier-influenced markets.
 
2013-10-16 02:02:31 AM
This is obviously a sign of End Times
 
2013-10-16 02:06:22 AM
Also, "oil" isn't gasoline. Depending on how dumb or lazy a particular journalist is, it may not even be petroleum: they often include natural gas condensate and other liquids that are hydrocarbons but not crude oil. So, we may be producing a ton of "oil" but not all of it is liquids we can turn into gasoline. Meanwhile, as other posters have noted, Chinese importing has increased. So has domestic consumption is large producers: when Saudi oil use increases more than production increases, the oil they sell on the world market decreases, eve though they may be producing record amounts. And since they sell gasoline for a few cents per liter and use oil to burn for electricity and have a fast-growing population, their use of oil has been jumping upwards. In fact, a lot of the major oil producers have used new production for domestic consumption rather than exports. Add in the decline of the North Sea, lost production in Arab Spring countries that haven't settled back down, sanctions against Iran, the long-term failure to seriously invest in new production by Mexico, Venezuela, and others, and you start to realize that just because US production of stuff that newspapers call "oil" has jumped up lately does not mean that the world market for oil is swamped enough to drop prices.

And that's not to even start talking about decline rates on the new US wells.
 
2013-10-16 02:09:40 AM
Oh, and one more thing: a lot of the new production didn't happen before because prices weren't high enough to make it profitable. Which means that using unconventional (and more expensive) techniques to extract it effectively sets a floor under prices. It is impossible to extract enough shale oil to drive prices down to the good old days, because good old prices won't pay for the extraction of shale oil.
 
2013-10-16 02:43:52 AM

PC LOAD LETTER: farkstorm: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

Commodities prices are established by traders, not by producers.

I am curious. What, exactly, do they base the price of gas on? Pure demand? Doesn't make sense. What is it?


a mix of supply and demand also impacted by inflation caused by huge deficits and the multi trillion dollar fed balance sheet. Pretty straight forward stuff.
 
2013-10-16 02:46:11 AM

ImpendingCynic: Marcus Aurelius: You know what we really need?

To export more oil.

Via the Keystone XL pipeline!

But it's not our oil that's being exported. We get all the risk and none of the benefits. Yay!


this reply is full of so much farking fail.
 
2013-10-16 02:48:05 AM
The US produces more oil than the Saudis, sure. Especially since we're in the middle of a boom. But the US has always been near the top, trading places with Russia and the Saudis. We are, were, and will always be an oil power. That's part of why the US and USSR were the big empires of the 20th century.

But the US ALSO uses more oil than it produces, unlike the Saudis.

As for China, well, they are the up and coming next imperial power, though they are currently mostly doing this economically rather than militarily. Economies still run on oil. China has a big, expanding economy that uses more fossil fuels all the time. It shouldn't surprise anyone that they caught and passed the US in oil imports, especially since they produce less than half as much oil as the US with a population 4x larger.

As for fracking, it's not a new tech, and the very condition that allows the use of fracking is the condition that leads to paying $3 a gallon for gas - high oil prices. Fracking isn't cheap, so fracked oil has to sell for more to make a profit. In the past, the resource was known but the cost of extracting it was too high for the return. Since oil has gotten substantially more expensive, fracking has become economic (like oil sands and deepwater and others). If oil suddenly was $20 a barrel, then fracking/oil sands/deepwater/CO2 injection would all become uneconomic, new projects and new wells would not be started, and oil would quickly rise in price back to the point at which this stuff was profitable again.

If you can't understand this - that there can be a lot of oil but it can be very expensive - then you need to read up a LOT more on how energy works in the economy.
 
2013-10-16 02:56:22 AM

tjfly: ImpendingCynic: Marcus Aurelius: You know what we really need?

To export more oil.

Via the Keystone XL pipeline!

But it's not our oil that's being exported. We get all the risk and none of the benefits. Yay!

this reply is full of so much farking fail.


Yeah, Keystone will absolutely raise the price of gas for the average American, but the oil companies won't mention a word of that.
 
2013-10-16 02:58:42 AM
Grand_Moff_Joseph:

/stop commodity trading of oil
//all of it


How?
 
2013-10-16 03:29:11 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


Because the global market value of gas is over $2.
 
2013-10-16 03:44:43 AM

andrewmoriarty: It's always amusing to hear Americans complain about Petrol prices, in Australia our petrol costs twice as much, if we're lucky.


Indeed.  "Awesome, it's still under $5/gallon!"

/wouldn't mind $10/gallon if it got us freakin' national healthcare already
 
2013-10-16 04:26:04 AM

andrewmoriarty: It's always amusing to hear Americans complain about Petrol prices, in Australia our petrol costs twice as much, if we're lucky.


And uphill in both directions.
 
2013-10-16 04:57:40 AM
Hooray for the oil barons!
 
2013-10-16 05:19:50 AM
But my tap water tastes like burning.
 
2013-10-16 06:11:44 AM
But gas is still almost $4/gal at my local pump. EXPLAIN THAT, OBAMA
 
2013-10-16 06:48:12 AM
One other detail being missed here by the idiots is that fracking is an expensive way to extract oil.  I don't know where the cut-off is (I doubt anyone but an insider does), but at oil prices where gasoline falls well under $3/gallon, fracking would no longer be profitable and U.S. oil production would fall.
 
2013-10-16 06:53:20 AM
I think the US should troll OPEC and petition for membership.
 
2013-10-16 06:57:06 AM
OK... so I'm thinking, the US becomes oil self-sufficient and stops buying from Middle East powers, then supplies excess to China to offset the ginormous trade deficit.

Oh, wait. I live in the real world. :-(
 
2013-10-16 07:02:53 AM

Nogale: OK... so I'm thinking, the US becomes oil self-sufficient and stops buying from Middle East powers, then supplies excess to China to offset the ginormous trade deficit.


Which will happen right after we close our bases in the middle-east and stop propping up Israel.
 
2013-10-16 07:19:17 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


Yea, things are little different than in the Rockefeller days. Nobody seems to remember any of that. Or the Bell breakup (so they could all merge back together, wtf?).


Nogale: I think the US should troll OPEC and petition for membership.


www.automizeit.com
 
2013-10-16 07:21:44 AM
Might as well just keep flaring it off in the mid-west.
 
2013-10-16 07:26:59 AM

PC LOAD LETTER: farkstorm: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

Commodities prices are established by traders, not by producers.

I am curious. What, exactly, do they base the price of gas on? Pure demand? Doesn't make sense. What is it?


Supply and demand. If china and the developing world were still consuming at levels they were 15 years ago, prices would be much much lower.

It really is that simple.
 
2013-10-16 08:02:52 AM

worlddan: sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.

buzzcut73: And yet gas is still over $3/gallon everywhere. They've figured out we'll pay that, and you'll never see it below $2.50 again no matter how much is produced.


Both of these.  It wouldn't surprise me at all if the whole thing was a conditioning plot to begin with. That the oil industry deliberately avoided using the technology until people were conditioned to the higher prices.


Guys, you really thought that more US drilling would lower gas prices?

Oil is a global product. If we drill more that extra oil is divided on the world market. Increasing domestic production just makes the oil companies a little wealthier and adds a small amount of jobs.

I just hope that due to fracking the headline in 20 years isn't "US top importer of clean water".
 
2013-10-16 08:18:45 AM

nocturnal001: I just hope that due to fracking the headline in 20 years isn't "US top importer of clean water".


It really makes me want to get a bunch of 5,000 gallon cisterns and bury them in my yard.

/fortunately I live in a granite state. Fracking won't be happening here.
 
2013-10-16 08:27:32 AM

ajgeek: nocturnal001: I just hope that due to fracking the headline in 20 years isn't "US top importer of clean water".

It really makes me want to get a bunch of 5,000 gallon cisterns and bury them in my yard.

/fortunately I live in a granite state. Fracking won't be happening here.


I moved to Kansas City last year to be close to my wife's family. We had two bad droughts lately and the demand for fracking water really put a strain on water supplies. Farmers sold their reserve water to frackers and then couldnt water their crops.
 
2013-10-16 08:30:37 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


Let me repeat this for morons:

OIL IS A GLOBAL MARKET.  PUMPING MORE IN THE US HAS NO EFFECT ON US PRICES.  THE OIL IS SOLD GLOBALLY NO MATTER WHICH HOLE IN THE GROUND IT IS DRAWN FROM.

/ Drill baby drill.
 
2013-10-16 08:45:30 AM
Fraking is "cool" when it's done at least a thousand kilometers away from my water supply.
 
2013-10-16 08:49:38 AM

sammyk: Why are we paying more that $2/gallon for gas? It's amazing that we have anti trust laws because of the oil industry, and we will never drop the anti trust hammer on them. The so called laws of supply and demand have nothing to do with the price. Wall st bankers will be in cuffs long before there will ever be a price fixing investigation against big oil.


Did you miss the part where it says "China overtakes the USA for importation"? Twenty or thirty years ago Chinese roads were filled with bicycles.  Today half that country* has cars, and there are traffic jams that last for days on end.  India is also booming and becoming wealthy -- in any case there are a few hundred million new customers for gasoline, and production hasn't kept pace.

*I'm over-estimating, but even if it's just a tenth of the country that's 130 million new drivers.
 
2013-10-16 09:00:01 AM
Fracking is done at depths of 5,000-20,000 feet, far below how deep wells go and the fluid which is only 0.5% chemicals isn't left in there, so how does it contaminate groundwater?
 
2013-10-16 09:15:51 AM

Cloudchaser Sakonige the Red Wolf: Fracking is done at depths of 5,000-20,000 feet, far below how deep wells go and the fluid which is only 0.5% chemicals isn't left in there, so how does it contaminate groundwater?


Mishandling of the chemical on the surface or leaking retention ponds.  With a splash of incomplete cementing of the liner allowing for the material to seap from the middle of the hole.
 
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