I saw this in Yahoo News who got it from U.S. News. It's an explanation of the different reasons why the price of oil is going up in the U.S. But here's the one that really got to me.
Seriously? The U.S. is a net exporter of oil? We are being more fuel efficient so we're not demanding as much gas? Therefore the U.S. OIL companies are not making enough money and EXPORTING it to Asia? What???
Could this all be true?
I need to go to my happy place and it doesn't require gas. Thank goodness.
"Growing demand from Asia. The Department of Energy reported that the United States became a net exporter of oil for the first time since 1949 last year. But if we have all this "extra" oil to be exporting, why are prices at home still going up?
A lot of it has to do with demand for gasoline, which has been declining in the United States for the last 10 years, while shooting up by leaps and bounds in places such as Asia and South America. As demand has tapered of here due to more fuel-efficient vehicles and, more recently, the weak economy, oil companies have had to broaden the scope of potential markets--bad news for American consumers.
"Oil companies that have increased their exports overseas essentially are depleting the U.S. supply [and] in doing so it's creating an artificially higher price for American consumers," Laskoski says. "When consumer demand is weak [in the United States], it's a very attractive option to export and get those healthier profit margins."
That trend isn't likely to change with a burgeoning middle class in Asian economic powerhouses such as China. According to the EIA, Asia surpassed North America as the largest petroleum-consuming region in 2008, gobbling up 25 million barrels a day in 2010."
Seriously? The U.S. is a net exporter of oil? We are being more fuel efficient so we're not demanding as much gas? Therefore the U.S. OIL companies are not making enough money and EXPORTING it to Asia? What???
Could this all be true?
I need to go to my happy place and it doesn't require gas. Thank goodness.
A very good read and food for thought. Thanks Kay.
ReplyDeleteso, because demand is less here, therefore prices have gone up. But if demand were high here, than prices go up also. Do the oil companies have a bridge to sell the american consumer. Or, what.
ReplyDeleteOne nice thing about living in an urban area with mass transit is a way to avoid using too much gas. Except for a few doctor visits and my school, we never go outside the Washington DC beltway.
ReplyDeleteI told my granddaughter you can always tell when the economy is improving, the gas prices go up. Thinking about it this way makes me feel positive. Dianne
very good analysis Kay, I always learn so much here! It's scary how profit drives everything!
ReplyDeleteit's an interesting world economy we live in...
ReplyDeleteThat really does make me angry, Kay. Can I go with you to that happy place? I don't need to get upset about something I can't change. :-(
ReplyDeleteYes, I'm with DJan!!
ReplyDeleteSylvia
Okay, I lost the "reasoning" at the third paragraph. I think it's a nice cover for simple greed. This is tacky but true: All I know, is every time I saw a photo of Bush holding hands (seems to be accepted in Arab cultures,) with an Arab VIP, the oil prices went down.
ReplyDeleteMaybe Obama needs to spend more time meeting with those with the oil. DrumMajor
Frustrating isn't it? I am thinking horse, bicycle and walking. That might require moving closer to town.
ReplyDeleteThank you so much for stopping by with your words of comfort. They were greatly appreciated.
It makes me angry when I read news like that. It is so unjust and hits the people the hardest who don't have the money to pay it to get to their job to earn some money to keep their families going!
ReplyDeleteI think you know how I feel about this. I just count my blessings that my lil' Miss Ruby isn't a gas hog.
ReplyDeleteI need a bike!
ReplyDeleteFortunately, I don't drive much and fill up the car every 2 months at Chevron, which charged me $4.059 last time. David gets his gas from Costco, which charges much less. But with rising gas prices, that's all the more reason to buy an electric vehicle!
ReplyDeleteI think I'll join you in that happy place!
ReplyDeleteAll we hear about is the need to drill, baby, drill. And yet the president tells us U.S. production of oil is up. Now you're saying we actually export oil! And either way, enough oil, not enough, too much oil, the price goes up.
ReplyDeleteIt's not 'supply and demand' at all. It's investor speculation and greed. But of course we can't put any regulations on the 'money changers'.
We all need that happy place.
Well, something is very wrong with the statistics. Just checked the U.S. Energy Information Administration site. Their numbers show the U.S. imports about three times as much crude oil as it exports. That has been true for many years, according to everything I've read in the past.
ReplyDelete