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  1. #1 Oil imports plummet 
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    Lots of good news in this article. Some of it was surprising to me.

    I believe the shift to natural gas by some sectors is around the corner. Power production and heavy trucks, I believe will shift, but I don't think cars will.
    Still. Energy independence? Really?! Some believe, and here's their case.
    http://www.energyandcapital.com/arti...s-plummet/2623

    Domestic oil production is at a fifteen-year high.

    Foreign oil imports are down.

    The U.S. has announced production records at two of its major shale deposits this month.

    Is it possible we're finally on track for that elusive thing we call energy independence?

    Let's back up and look at the numbers...

    The EIA announced last week domestic oilfield production hit a high not seen since 1997: an average 6.509 million barrels per day.

    On top of that, foreign oil imports fell to 7.55 million barrels per day — a drop of 2.25 million bpd.

    Foreign oil imports have, for the most part, been declining year over year for a while now...

    In 2006, we imported an average of 13.7 million bpd; by 2009 that figure had dropped to 11.69 million bpd; and last year we imported 11.5 million bpd. For the first six months of this year, average daily imports were at 10.86 million.

    Last week's plummet was a sharp one.

    As it turns out, domestic oil stockpiles dropped alongside imports (from 2.45 million barrels to 365.18 million barrels).

    All of this sent the price of oil futures on the New York Mercantile Exchange below $90 a barrel...

    But interestingly enough, demand has slowed.

    What does it all mean?

    Well, for one thing, it means we aren't as close to achieving energy independence as those numbers might have you believe. The drop in imports was deceptive because it was supplemented with a drop in the inventories.

    But it also means we can cut back imports without being in any immediate danger, since demand dropped while domestic production increased.

    Earlier this month, North Dakota announced its Bakken Shale Formation hit a new high for oil production. Wells pumped 609,580 barrels per day — up from 598,510 the previous month and a mere 360,820 the year before.

    Roughly a week later, the Texas Railroad Commission announced the Eagle Ford Shale hit its own record in July, pumping out 310,370 barrels per day. A year ago the Eagle Ford was only pumping 120,532 barrels.

    In the first half of 2012 the EIA reported the United States had already met 83% of its energy needs — and should this pace last through the end of the year, we will be at our most self-sufficient level in 19 years.

    What do we make of this mixed bag of data?

    Demand and prices are dropping, but so are imports — while domestic production continues to climb.

    Domestic energy independence certainly isn't just around the corner. I'd say it was bad news, but there's just no way to ignore the potential...

    A steady uptick in domestic production is here and growing as drillers in the Bakken allow us to continue to wean ourselves from foreign oil.

    Add to that new and improved enhanced oil recovery technologies that can get us there even faster, as they provide oil producers methods to access oil left in wells after initial recovery.

    We can't expect our domestic oil addiction, which has been slowly declining in the past years, to suddenly plummet. It just doesn't work that way.

    But we can get those drops to be a little bigger each year.

    We just have to rely on the technology at our disposal — and make the most of it.
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  2. #2  
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    So why is reg gasoline at $3.45 in Florida?
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  3. #3  
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    Quote Originally Posted by Novaheart View Post
    So why is reg gasoline at $3.45 in Florida?
    I suppose because oil is sold - as I'm sure you know - on an international market, and the price is $97.83 a barrel, which - as I'm sure you know - is for a 42 gallon barrel, which - as I'm sure you know - is $2.32 for just the raw oil.
    And that raw material - per barrel - yields only 19.8 gallons of gasoline, which is then modified according to the whims of the EPA. The rest is put to use for the hundreds of other products that are made from raw oil.

    You may not know that the above price is for West Texas Intermediate (WTI); the stuff from the middle east is graded differently and priced differently. Brent Crude is one classification you may have heard of. It runs about 20$ a barrel higher than WTI

    Natural Gas, on the other hand, is not traded on a large scale international market, so what we produce in the U S is priced in the U S.

    There was only one line in your post, so forgive me if I try to read between it. Drilling more in the U S will not, I think, reduce the price of oil. What it will do is emasculate the Arab nut cases who believe they have the U S by the nuts, and reduce the huge transfer of wealth from our country, which has a myriad of industries, to their countries, which have about 2 industries one of which is explosive vests.
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  4. #4  
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    The import may go down. But until we stop selling to foreign countries, the prices will still be way too high. When you take into account the taxes, and profits for the oil companies and businesses that sell gas; there is no reason for gas to be above .90 cents a gallon.

    I love my God, my country, my flag, and my troops ....
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    Senior Member TVDOC's Avatar
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    Quote Originally Posted by LukeEDay View Post
    The import may go down. But until we stop selling to foreign countries, the prices will still be way too high. When you take into account the taxes, and profits for the oil companies and businesses that sell gas; there is no reason for gas to be above .90 cents a gallon.
    Starbuck just told you (correctly) that oil is sold on an international trading market.......and the price for raw, unrefined crude is $2.32 per gallon at the wellhead.......how in the hell can you get to $0.90 for the refined product?????

    Short answer: Never gonna happen.........crude would have to sell in the range of $10 - $15 per barrel to result in finished gasoline to be sold at that price. If crude prices dropped that low, all of our new domestic production methods (like Bakken and Eagle Ford, as well as most of the offshore rigs) would become too expensive to compete, and would be shut down......we'd be back in the import business.....

    doc
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  6. #6  
    Senior Member LukeEDay's Avatar
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    Quote Originally Posted by TVDOC View Post
    Starbuck just told you (correctly) that oil is sold on an international trading market.......and the price for raw, unrefined crude is $2.32 per gallon at the wellhead.......how in the hell can you get to $0.90 for the refined product?????

    Short answer: Never gonna happen.........crude would have to sell in the range of $10 - $15 per barrel to result in finished gasoline to be sold at that price. If crude prices dropped that low, all of our new domestic production methods (like Bakken and Eagle Ford, as well as most of the offshore rigs) would become too expensive to compete, and would be shut down......we'd be back in the import business.....

    doc
    How did they get .90 cents before? The prices are going up because the speculators and opec are fixing the prices. Get them out and you will see the prices go back down. When I said .90, I was referring to where it ends after the government, the gas stations, and the oil companies get their share. Anything over that is gouging and more money in the pockets of the speculators and opec.

    I love my God, my country, my flag, and my troops ....
    _ WELFARE IS NOT AN ENTITLEMENT! _
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