So we pay higher prices for gas because oil companies are exporting excess crude overseas?

aggiealum

aggiealum

Member
So oil refineries have a glut of crude oil, and instead of producing more gas in the US to bring gas prices down, they export it to foreign companies for a bigger profit. This is one reason the Obama Administration put a hold on the Keystone Pipeline debacle. The majority of that oil coming from Canada was expected to be shipped out to foreign countries. Data shows that the Midwest states would see a spike in gas prices if the pipeline did go through.

http://money.msn.com/saving-money-tips/post--price-of-gas-rises-in-us-as-refiners-export-more-overseas
 
2quills

2quills

Well-Known Member
The keystone pipeline is about Canada's oil. Keystone is the last faze of a pipeline network that's already in place. Most of this was all retro work to convert old gas pipe into handling crude. Companies here will refine and export it. The increased production also brings jobs for towns like yours and mine. Last time I checked we were still below the world average for fuel prices.
 
aggiealum

aggiealum

Member
Quote:
Originally Posted by Bang Guy http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543843
What country is paying less for gas than us?

I have no issue with increasing our exports.
Why do I care what other countries pay for gas? So your logic is, let the oil companies make billions in profits selling their products overseas, and we get the shaft by having to pay higher gas prices? I could care less whether we have the lowest price for gas in the world. When gas costs me $1.00 more per gallon simply because Exxon is selling their excess to Mexico (which has one of the largest oil producing companies in the world - Pemex), that affects MY bottom line. When I go overseas and pay $5.50/gallon when renting a car, I accept it because that's what they charge. But I don't live there full time, so I could care less how high it goes.
 
aggiealum

aggiealum

Member
Quote:
Originally Posted by 2Quills http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543845
The keystone pipeline is about Canada's oil. Keystone is the last faze of a pipeline network that's already in place. Most of this was all retro work to convert old gas pipe into handling crude. Companies here will refine and export it. The increased production also brings jobs for towns like yours and mine. Last time I checked we were still below the world average for fuel prices.
Reports show that pipeline will only produce 2,000 - 3,000 jobs during the entire project. That number will be severely reduced once the pipeline goes online. It won't reduce our gas prices, because as you stated, the majority of oil coming down that pipeline from Canada will be exported out of the country. The Midwest states are expected to see gas prices RISE because of the diversion of that oil. As I said, I could care less how much 'cheaper' our gas is compared to other nations. You sit here and whine about how Obama is limiting oil companies from drilling more areas around the country, thereby lowering production in the refineries and causing our gas prices to increase, yet you applaud these same oil companies for exporting their glut of oil to other countries, thereby raising our gas prices anyway. So which one is it?
 
2quills

2quills

Well-Known Member
Reports show that pipeline will only produce 2,000 - 3,000 jobs during the entire project.  That number will be severely reduced once the pipeline goes online.  It won't reduce our gas prices, because as you stated, the majority of oil coming down that pipeline from Canada will be exported out of the country.  The Midwest states are expected to see gas prices RISE because of the diversion of that oil.  As I said, I could care less how much 'cheaper' our gas is compared to other nations.  You sit here and whine about how Obama is limiting oil companies from drilling more areas around the country, thereby lowering production in the refineries and causing our gas prices to increase, yet you applaud these same oil companies for exporting their glut of oil to other countries, thereby raising our gas prices anyway.  So which one is it?
I don't see where I whinned about Obama.
The work on the pipeline itself aren't the only jobs that would be created. The increased production, transportation and expansion of refineries all mean more work for a lot of business.
You don't really think that gas prices are ever really going to go backwards do you?
Again, it's Canada's oil, not ours. Tar sands oil makes dirtier fuel, it doesn't burn as clean. I wouldn't use it in my vehicle anyway. California would never allow it which os why it's slated for poorer countries.
 
bang guy

bang guy

Moderator
Quote:
Originally Posted by AggieAlum http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543856
Why do I care what other countries pay for gas? So your logic is, let the oil companies make billions in profits selling their products overseas, and we get the shaft by having to pay higher gas prices? I could care less whether we have the lowest price for gas in the world. When gas costs me $1.00 more per gallon simply because Exxon is selling their excess to Mexico (which has one of the largest oil producing companies in the world - Pemex), that affects MY bottom line. When I go overseas and pay $5.50/gallon when renting a car, I accept it because that's what they charge. But I don't live there full time, so I could care less how high it goes.

I'm sorry you're getting the shaft.
 
theclemsonkid

theclemsonkid

Member
Yet another reason "capitalism" is awesome. American companies will do anything and everything to increase profits, even if that means screwing over their own people. If the CEO of Exxon's mother was standing in the way of a new drill, I'm pretty sure he'd just run her over. Gotta make that money!
 
2quills

2quills

Well-Known Member
Yet another reason "capitalism" is awesome.  American companies will do anything and everything to increase profits, even if that means screwing over their own people.  If the CEO of Exxon's mother was standing in the way of a new drill, I'm pretty sure he'd just run her over.  Gotta make that money!
A bit hypocritical for someone living in and taking advantage of the freedoms that the richest nation in the world has to offer.
When gas prices here shoot well above the worldaverage then you'll have a leg to stand on. Untill then we can continue to let obama hold up progress here so that his renewable energy buddies can remain happy getting rich while dems whine about prices at the pump.
Too funny.
 
aggiealum

aggiealum

Member
Quote:
Originally Posted by 2Quills http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543870
A bit hypocritical for someone living in and taking advantage of the freedoms that the richest nation in the world has to offer.
When gas prices here shoot well above the worldaverage then you'll have a leg to stand on. Untill then we can continue to let obama hold up progress here so that his renewable energy buddies can remain happy getting rich while dems whine about prices at the pump.
Too funny.
How is he "holding up progress" in regards to the oil industry? As I stated, what does it matter if they open up new fields? Apparently all these oil corporations will pump it out of the ground, then ship it out to whoever will pay top dollar for a barrel of oil. Your rationale is we should just accept it on the basis we have the "lowest price fuel in the world". Well, that's the reason the price has gone up 40 cents in the last two weeks. Will it ever get back down to the $2.00 level? Highly doubt it. But you seem to want to accept the mid $3.00 range as the norm. If someone doesn't push back on the oil companies, then the next thing you'll accept is the low $4.00 range as the norm.


This debacle doesn't just affect fuel costs for your car. I have a trip planned in July to Puerto Vallarta, and a couple of weeks ago, a round-trip ticket was going to cost me $470/ea. Then this Ukraine incident occurred, and now that exact same flight costs $800. My mistake was trusting Kayak when their Price Trend gave a 78% confidence that the ticket prices would drop from the $470 range within the next 7 days. Guess their trends don't factor in world crisis or whether the oil industry jacks up their prices anytime anyone in the Middle East sneezes.
 
2quills

2quills

Well-Known Member
Aggie, it's called inflation and it happens in every industry, period!
Where have you been living that gas doesn't spike at the beginning of every travel season? That has nothing to do with keystone.
What do you think is going to happen when reserve's are practically gone? You think prices will stay stagnant? Think again. Obama is holding up keystone for political reasons, not because he's worried about a spike in gas.
 
bang guy

bang guy

Moderator
Quote:
Originally Posted by AggieAlum http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543871
How is he "holding up progress" in regards to the oil industry? As I stated, what does it matter if they open up new fields? Apparently all these oil corporations will pump it out of the ground, then ship it out to whoever will pay top dollar for a barrel of oil. Your rationale is we should just accept it on the basis we have the "lowest price fuel in the world". Well, that's the reason the price has gone up 40 cents in the last two weeks. Will it ever get back down to the $2.00 level? Highly doubt it. But you seem to want to accept the mid $3.00 range as the norm. If someone doesn't push back on the oil companies, then the next thing you'll accept is the low $4.00 range as the norm.


This debacle doesn't just affect fuel costs for your car. I have a trip planned in July to Puerto Vallarta, and a couple of weeks ago, a round-trip ticket was going to cost me $470/ea. Then this Ukraine incident occurred, and now that exact same flight costs $800. My mistake was trusting Kayak when their Price Trend gave a 78% confidence that the ticket prices would drop from the $470 range within the next 7 days. Guess their trends don't factor in world crisis or whether the oil industry jacks up their prices anytime anyone in the Middle East sneezes.
What does the Ukraine issue have to do with Exxon exporting oil?
 
aggiealum

aggiealum

Member
Quote:
Originally Posted by 2Quills http:///t/397575/so-we-pay-higher-prices-for-gas-because-oil-companies-are-exporting-excess-crude-overseas#post_3543872
Aggie, it's called inflation and it happens in every industry, period!
Where have you been living that gas doesn't spike at the beginning of every travel season? That has nothing to do with keystone.
What do you think is going to happen when reserve's are practically gone? You think prices will stay stagnant? Think again. Obama is holding up keystone for political reasons, not because he's worried about a spike in gas.
Look at the margins, the rise in fuel costs is nowhere near the rate of inflation. Yes, it fluctuates based on season, and even when there's heavy travel periods. I see a spike in the price of a gallon to more than a dime every year in March and April due to Spring Break season for the schools. They'll jack it up for Memorial Day weekend, but claim it has nothing to do with the holiday. Some refinery in Louisiana has to shut down for a couple of days, and they jack the price up a dime, then drop it back down a week later. ANYTHING that happens in the Middle East will cause a spike, yet you read how they have all these reserves sitting around. The price has gone up here 40 cents in the last few weeks. For what? Apparently because of this Ukraine debacle. The US gets NOTHING from them in the way of oil reserves, so why should that affect our costs? Prices don't remain stagnant, but they also didn't have the massive swings we've seen over the last few years. Reserves gone? What do you think all that fracking north of you is doing? Of course he's holding it up for political reasons. That's what politicians do. Republicans have done the same to satisfy their own agendas for whatever contentious issue is going on for them at any given time. If you think it's just something Obama and the Democrats do, then you've buried your head REAL deep in that sand down in Port A.
 
2quills

2quills

Well-Known Member
Fracking is for gas not crude.
If you want to know why gas here has gone up so much then you can thank all of the abundant regulations that have been slapped on refineries and gas companies over the years.
Gas prices in California for instance are so high because of the extra refining processes to make it burn cleaner and safer for the environment. Its a catch 22. We want cleaner air but no one wants to pay the costs to get there.
Companies would love to export because they can refine it for cheaper and sell it to other countries for higher profits. So who do we blame for prices? Is it greedy oil companies or regulation? If it's regulation then we all blame ourselves.
Driving or flying is a privilege not a right. If you want to save on gas perhaps you should look into a chevy volt or something along those lines. That way when your warranty runs out and it costs you 12k for a new set of batteries you can blame all of the renewable energy guys for raping you on battery cost.
 
darthtang aw

darthtang aw

Active Member
Oh, and you are complaining about 3% of all U.S. crude oil.
Gasoline exported is 16 million barrels a month. we use about 9 million barrels of gasoline a day.
if we didn't export, oil prices would be higher as would the cost of many of our goods....I will let you try and figure out why.
There also refining capabilities to take into account.....there are different grades of crude oil and not all refineries can process every grade of crude. in fact most are set up for heavy dirty crude, compared to what we pump out of the ground.
 
beaslbob

beaslbob

Well-Known Member
FWIW here's my take.
Oil is a world market.
the only reason we import oil is because it is less expensive then producing locally.
The only reason we export is because it is more profitable then selling locally.
 
You must log in or register to reply here.
Top