According to a recent report by Bank of America, the United States has surpassed Saudi Arabia as the world’s biggest producer of oil:
“The U.S. increase in supply is a very meaningful chunk of oil,” Francisco Blanch, the bank’s head of commodities research, said by phone from New York. “The shale boom is playing a key role in the U.S. recovery. If the U.S. didn’t have this energy supply, prices at the pump would be completely unaffordable.”
Oil extraction is soaring at shale formations in Texas and North Dakota as companies split rocks using high-pressure liquid, a process known as hydraulic fracturing, or fracking. The surge in supply combined with restrictions on exporting crude is curbing the price of West Texas Intermediate, America’s oil benchmark. The U.S., the world’s largest oil consumer, still imported an average of 7.5 million barrels a day of crude in April, according to the Department of Energy’s statistical arm.
Ask yourself how this is possible. The US is the world’s biggest oil producer, and yet gasoline prices here in the states are higher than they’ve ever been. Which means that oil consumption in the US is so prodigious that it’s outstripping record-high oil production both here and in the world.
There’s really only one solution to this—we need to cut back on our consumption. Especially for private consumers, developing “green” technologies for the local production of electricity and concurrently developing a good electric car would go a long way to reducing our oil consumption, since the majority of our oil consumption goes toward transportation.
Also, I think it is important to recognize that fuel prices are being allowed to rise for political reasons. I think that it is likely that fuel prices absorb inflation much more than other prices do, and that this is one way the civil government pressures consumers into thinking that government-subsidized crony greenism would be good for the country. Most people believe that fuel prices are high because of discontinuities in Middle Eastern oil supply. But the majority of our oil imports come from Canada, which wouldn’t be very much impacted by a war in the Middle East. Most food products are subsidized by the federal government, thus reducing prices for the consumer. Without those subsidies, it is likely that there would be an even greater public outcry concerning the rising cost of living. Ultimately, prices are not being allowed to reflect the true state of the market, and consequently, we are being manipulated by a politically-motivated conglomerate of power brokers.
In the end, de-regulation and the destruction of crony capitalism would do wonders for this situation. I don’t think that will happen anytime soon, but eventually the system will collapse under its own weight. It’s just a matter of time. Either we make decisions about our future now, or those decisions will be made for us while we’re unprepared.
So much for the Supply/Demand economic theory of pricing. Can you say price fixing?
yes I can,it’s called “the obama administration”.
Prices are determined by Wall St. speculators.
No, it’s determined by Queen Barry Hussein (Dicktator) of the Muslim State of Kenya. Your hero.
Well said Lawton.
Wonder how many capitalistic losers (by Wall Street’s standards) come here to bitch about a socialist-loving, welfare-loving, economy-wrecking-loving, Muslim Brotherhood-loving, Kenya-loving, dictator-loving President Obama?
. . . . .Not defending Him ~ save your time. Just wondering?
You haven’t made any serious $ in the almost tripling stock market, have you?
If you are middle or lower class, chances are you don’t have the resources to do such things. I still don’t understand why people that defend the stock market’s high numbers, point at it and say we are doing great, when many MANY people cannot benefit from it. Not enough jobs, lowest work participation rate in decades, and more on welfare and food stamps than ever. How is this great? All these numbers have done, as the article points out, is higher food, energy, and gas prices than ever!
This is what your dollars worth has dropped to. The high numbers on wall street as well as on main street, all relate to the devaluing of the dollar by the Federal Reserve (so-called) Bank. The more they print, the less your dollar is worth. At the same time the numbers on wall street in my opinion are the effect of a devalued dollar. And this devalued dollar relates to inflation for the price of everything food to gas to wall street fake numbers. Don’t get so excited about those wall street numbers or your 401k for that matter, it will all fall soon enough, when the printing presses are forced to stop. The Feds just want to keep prices high to keep deflation from occurring! We would then be in a depression. Gas and food prices would fall, but also, jobs would go away, because Big Business would hoard their $$, not spend them on a hopelessly falling economy. This is why Ben Bernanke said we were doomed. Not his exact words, more like we were all f***ed
wrong, oil prices are determined by opec.
“There’s really only one solution to this—we need to cut back on our consumption.” Bovine feces. I really hope there was more than a little tongue in cheek when that was written. The only thing we need to cut off completely is the bogus authority of one Federal Reserve that keeps printing money at record levels making what few Federal Reserve Bank Notes (dollars) in our wallets worth less and less every day.
don’t know how to cut down on consumption,still have to go to work.maybe the head spook want’s us all on welfare so we don’t have to drive anywhere? our houses still need heat,do we move to where obama is from,kenya?tell the govornment to stop helping might work too.
I thought Birthers moved on “from Matches to Mobile ~ from Birthers to Benghazi ~ I’ve been in some big towns …….”
and your point?
Bravo, Pat2! Agreed 100%
This is All just political misinformation being forced down our throats.
Some people stand tomake Trillions on bogus “green technology” like battery powered cars….
We ALREADY HAVE CARS RUNNING ON PURE WATER, Using on board hydrogen generators.
This is NOT b.s. or undeveloped technology. These cause ZERO harmful emissions and they are “cheap to build” and practically FREE to operate.
the oil companies along with the federal government have completely bought up and silenced all of this technology purposely.
this practical technology has been available for mass production over 10 years now and it has been hidden from the public view.
THIS is big government and big business working together for their own interests and against the interest of the American people.
It truly makes any discussion about oil pricing & availability,
and those ridiculous electric cars, moot.
all of the automobiles & trucks in production today can be converted and run on hydrogen with their own hydrogen generator for only two to three thousand dollars Maximum.
Just try to google information about this technology.
It was completely removed from the internet years ago already…..
We Are ALL being duped……
The oil companies want to be able to ship all the oil and products to countries around the world, and make prices soar for them before allowing this technology out of the bag!
Think of all the faulty ignitions that GM has had to recall. This could be a sign or not! But, the Congress and Senate will know when to invest in this “NEW” technology before the IPO hits the market. So they will make a fortune. And we will have invested our 401Ks in Big Oil by then and Big Oil will have invested in Water Cars. No wonder the EPA is trying so hard to get all the water rights, Now!
Oh, my what a tangled web we have weaved
Ground AF1. Let the fool walk.
Bringing the oil out of the ground is one thing refining it is another. With so many regulations and different blends required with so few facilities the only result could ever be is high prices.
Grampa
I would like to know why these oil companies are selling to China rather than keep it in America so that we can benefit with lower prices ?
We trade oil on the world market, prices reflect West Texas Light Crude for our oil prices. Other parts of the world pay higher than that standard, so oil companies make more that way, than keeping it here. Knowing we buy under WT Crude prices. They still are regulated as to how much they can sell worldwide, which helps keep our prices, somewhat steady. The govt could regulate they sell less worldwide, but this would put the dollar in jeopardy!
Seems to be a lose/lose situation for us at this time. We do need to try and protect the dollar right now. But the Fed Res. has got to get out from under the printing to prop up wall street first. Then gradually step up interest rates. I think we are to unstable to do what Reagan did, and make major adjustments quickly.
america is exporting more oil then anyone else, we are also exporting more oil then we use. why are we slaves to opec and middle eastern countries that hate us? because we pay off middle eastern countries to not fight against us ( directly ) they just support other middle eastern countries and terrorist groups to do the fighting for them while they teach their children to hate all non-muslims at school and children’s tv shows. we are being played like suckers, russia and china are playing in the game also.
And trying to destroy the dollar in the process! I don’t know why they think we need their help on that front??? The Feds are doing a pretty good job of destroying the dollar, all by themselves.
We don’t need their stinking help, we are headed to the demise of the dollar, now!
We are gonna wake up one morning soon, go to get our morning cup of Joe, and it will cost us $ 75.00, instead of $7.50! Look at what the amount is carefully, buyer beware!
China and Russia are looking to stop trading the US dollar for oil. When the dollar is no longer used to trade oil, it will collapse. And every country that owns US Treasury and Bonds will demand payment for them in gold! When this happens, we do not inthe US have enough gold to pay them, Big OOPS!