Blue Mass Group

Reality-based commentary on politics.

U.S. crude oil production on track to surpass imports for first time since 1995

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According to the U.S. Energy Information Administration, the U.S. crude oil production on track to surpass imports for first time since 1995. This information contradicts the Verbal Diarrhea about the Keystone Pipeline coming from the Koch Brothers, the Lynch campaign, and some grossly misinformed people from Waltham, who make foolish claims about how “Supply and Demand” is going to reduce the price of Gas at the pump, when in reality, this will only serve to further increase exporting and not reduce the price of Gas by so much as one red cent.

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  1. Most of the production is coming on private land, not public land. In fact, Obama rescinded the permits for oil producers to explore on public lands, he even said it in the debates.

    Notice where the spike in oil production is? North Dakota and Texas, I think Mitt’s best states. Besides, don’t you recall the oil spikes of the 70’s when OPEC limited oil production (the supply side). When Reagan got to town, he deregulated the oil industry, America began pumping oil along with Mexico and other countries, the supply increased and prices fell. The economy took off like a MX Missle, creating 20 million high paying jobs. Now Carter fans will say his conservation measures helped but I see no value in Americans driving around in K-cars or other 4 cylinder put-puts. There were plenty of trucks and older cars on the road.

    More recently, during the spike in gas under W, he opened up the east coast to oil drilling, and immediately, prices began to fall. Gov. McDonnell of VA wants to drill but Obama says no.

    • Since I do not work for the Koch Brothers, they can stick it in their Pipeline and smoke it.

    • because one of your main reasons for supporting Lynch has just been blown out of the water, you want to make this a petty fight about Hating on Obama.

      DFTT

  2. but keep on digging.
    Drivers endure high gas prices despite US oil boom.

    The money quotes are:

    So is the high price of gasoline a signal that markets aren’t working properly?

    Not at all, experts say. The laws of supply and demand are working, just not in the way U.S. drivers want them to.

    U.S. drivers are competing with drivers worldwide for every gallon of gasoline. As the developing economies of Asia and Latin America expand, their energy consumption is rising, which puts pressure on fuel supplies and prices everywhere else.

    The U.S. still consumes more oil than any other country, but demand is weak and imports are falling. That leaves China, which overtook the U.S. late last year as the world’s largest oil importer, as the single biggest influence on global demand for fuels. China’s consumption has risen 28 percent in five years, to 10.2 million barrels per day last year.

    ‘‘There’s an 800-pound gorilla in the picture now — the Chinese economy,’’ says Patrick DeHaan, chief petroleum analyst at the price-tracking service GasBuddy.com.

    U.S. refiners are free to sell gasoline and diesel to the highest bidder around the world. In 2011, the U.S. became a net exporter of fuels for the first time in 60 years. Mexico and Canada are the two biggest destinations for U.S. fuels, followed by Brazil and the Netherlands.

    Ergo, the Keystone Pipeline will do nothing to bring down gas prices because it is a GLOBAL Market.

    • First you say it’s not supply vs demand, then you quote experts who say it is, which is what I said.

      I hope you are the one not hating on Obama when he approves Keystone. Too many jobs and tax revenue on the line, can’t say no to that. As far as impacting the gas prices, every little bit helps. For every no Mike, you need to say yes somewhere else.

      • Not at all, experts say. The laws of supply and demand are working, just not in the way U.S. drivers want them to. Or DFW wants them to. was the point. The market is Global, so the only thing that a Pipeline from Canada to the Gulf Coast will accomplish will be greater exports. Since I don’t work for the Oil Companies, they can go take a flying leap, for all I care. Lynch was wrong to support this stupid project. The jobs can be created now by fixing the crumbling bridges in America. But no, you Republicans don’t give a damn about jobs, only in making rich people richer while the environment gets raped.

        • Yep, North Dakota, 3.1%, due to oil and gas production. Hell, McDonalds starts their new hires at $15 an hour and $300 signing bonuses. Strippers make $2K to $3K on a good night. Oil workers make $100K-$150K. You are crazy to say just rich tycoons make money in the oil industry. In fact, it is the greatest way to lift people out of poverty, from what I can see.

          What sad about your last post is you don’t give a damn about anyone but yourself. Since you don’t work in the oil industry, everyone else who does and screw, right? Too bad we don’t have a few rigs of Cape Cod, create some jobs and a product we all need and use.

          • What garbage. I would prefer that people don’t die when the bridges they are driving over crash to the ground, so you conclude I only care about myself. In 38 days, Lynch will be history, and hopefully, the Keystone Pipeline will be history soon as well.

            • Keystone XL is a private project, won’t cost the taxpayers anything, in fact, it raises revenue for local taxes and with the thousands of new jobs, more federal and state taxes.

              The bridge work is paid for by the gas tax and what not, but totally different subject. You are making a false choice for some reason. And whenever you say bridges are “crashing down”, it reminds me of a song “London Bridge is falling down”. So silly. Thanks for not saying I will be history in 38 days….

                • that bridge collaped. Perhaps if the Big Dig didn’t divert so much federal monies, more could have been spent fixing other bridges and tunnels across the nation.

                  Still don’t get it, why can’t we do both, unless the fellas building Keystone are the same ones who would fix the bridges.

                • Once again, first you claim that it is “SILLY” to care about create jobs that would repair bridges, and when I demonstrate that people are dying because bridges are collapsing, you instead want to talk about something entirely different, and then complain about the Big Dig.

                  Do you even know how to have a conversation?

                  Your claim is that we need the Keystone Pipeline to drive down gas prices and create jobs. The USA is on-track to produce move oil than it imports and is also on-track to record setting oil exports. We could be investing in clean energy to create jobs and help the environment, but the no, let’s destroy the environment and kill any attempt at clean energy. Let’s keep supporting coal (one of you issues) and fossil fuel (your issue), and just screw the environment.

                  This exchange is deteriorating into non-sense, so I will revert to DNFT!

                • I hate to contribute more troll-feed, but the failure was not caused by deferred maintenance or tax cuts. In fact, the straw that broke the bridge’s back was — wait for it — heavy equipment standing on the bridge to maintain it. The cause was identified by the NTSB and cited in the report linked above (next to the image) (emphasis mine, with apologies to kbusch):

                  A formal investigation took more than a year, but once it was finished the National Transportation Safety Board said the cause of the I-35W Mississippi River bridge tragedy was a simple design flaw in the bridge’s gusset plates — metal plates that help connect one steel beam to another. At that time, NTSB acting chairman Mark Rosenker said the board’s investigation would “provide a roadmap for improvements to prevent future tragedies.”

                  Meanwhile, the actual cause of increased gas prices is, in fact, global demand — as noted above. The cited piece now has a new URL (it moved to bostonglobe.com), and it destroys the Walthamite’s argument.

                  Let me just run an instant-replay of the quote from mick_cote’s comment above:

                  Not at all, experts say. The law of supply and demand is working, just not how US drivers would want.

                  US drivers are competing with drivers globally for every gallon. As the developing economies of Asia and Latin America expand, their consumption rises, which puts pressure on fuel supplies and prices everywhere else.

                  The United States still consumes more oil than any other country, but demand is weak and imports are falling. That leaves China, which overtook the United States late last year as the world’s largest oil importer, as the single biggest influence on global demand for fuels. China’s consumption has risen 28 percent in five years, to 10.2 million barrels per day last year.

                  “There’s an 800-pound gorilla in the picture now: the Chinese economy,” said Patrick DeHaan, chief petroleum analyst at GasBuddy.com.

                  US refiners are free to sell gas to the highest bidder around the world. In 2011, the United States became a net exporter of fuels for the first time in 60 years. Mexico and Canada are the two biggest destinations for US fuels, followed by Brazil and the Netherlands.

                  In fact, it is good old-fashioned petroleum industry greed that keeps gas prices high. That has nothing to do with environmental restraints, and the proposed pipeline will not change it.

                  The primary beneficiaries of the pipeline are the companies who will profit from selling the oil it carries overseas consumers.

                • but that does not mean that bridges overall, need some infrastucture work, which would create jobs. The following Link is more on-topic. The money quote is:

                  Over two hundred million trips are taken daily across deficient bridges in the nation’s 102 largest metropolitan regions. In total, one in nine of the nation’s bridges are rated as structurally deficient, while the average age of the nation’s 607,380 bridges is currently 42 years. The Federal Highway Administration (FHWA) estimates that to eliminate the nation’s bridge deficient backlog by 2028, we would need to invest $20.5 billion annually, while only $12.8 billion is being spent currently. The challenge for federal, state, and local governments is to increase bridge investments by $8 billion annually to address the identified $76 billion in needs for deficient bridges across the United States

                • Several lawyer friends of mine have, over the years, drilled into my thick skull that choosing correct examples is crucial in any debate, especially when the other side does not share my interest in getting to a correct (as in “supported by the facts”) answer.

                  Our infrastructure is in desperate need of massive investment. As we learned in the Big Dig, any large expenditure of money requires similarly large efforts to curtail corruption — whether that investment is public or private.

                  One of the more scurrilous lies of today’s GOP is that “smaller” government will somehow magically result in “better” results. Surely the growing number of failed regulatory entities — and the catastrophic consequences of those failures — reveals the absurdity of that dogma.

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