Quote:
Originally Posted by DudeRick
The futures market dictates the price of gas. Increased supply drives down futures prices. Look at the current price of natural gas as an example what happens to prices after several years of increased production and supply. Does it mean that gas will go to $1a gallon and stay there, no, but it doesn't mean that we shouldn't supply more of our own demand. I am all for new technology and green energy, but it has to be able to compete in the free market at competitive prices. What has been happening here is that our current President has been trying to make its price competitive by pouring billions of tax payer dollars into its development while cutting oil drilling and supply (Keystone Pipeline) to drive up the price of gas. All for the sake of kissing the asses of his environmental supporters. I am all for letting the free market develop it all, providing jobs and economic growth. The competition between them will help drive each others price down. And for you information I drive a Honda Civic and my wife drives a Honda CR-Z hybrid.  |
This is bullshit. Keystone won't do anything for the POO in America. Firstly the XL is to EXPORT THE OIL TO ASIA so right there, that's shot down. Secondly pretending all 500k bopd went into the American market it would only mean an extra 2.6% supply (pretending there wasn't a similar decrease in oil imported from other markets which there would be). Basically it's enough for a few pips for the futures traders for a week to sell the news. Oil production and drilling (although not leases) is up under the Obama administration (but not because of them), it's why there is a gas glut and all the shale producers are hunting condensate rich gas and shale oil. Unlike with oil, America doesn't have the infrastructure to export gas in any great quantity. Hence low prices as the supply can't be soaked up by the world market. As soon as producers build the infrastructure LNG will be exported as well bringing local gas prices back up. It's totally different with oil.
Seriously most of you guys have no idea of the timelines and scale involved in hydrocarbon exploration and the macroeconomics of oil. Neither Obama nor Romney is going to change the price at the pump more than 1% one way or the other with regulation, certainly not within the timeframe of a presidential term (unless they socialise it, which they won't).