I just watched BBC news (bad habbit I know) - they spent 15 minutes telling us the US produced more oil in March and April than Saudi, Europe and S.America combined http://www.aei-ideas.org/2013/07/no-1-us-produced-more-petroleum-in-march-than-a-saudi-arabia-and-b-europe-central-and-south-america-combined/ and by 2020 the US will produce more oil than Saudi, Europe, S.America, Africa and UAE combined. I have since found other news agencies to back this up http://www.telegraph.co.uk/finance/newsbysector/energy/9672587/US-to-topple-Saudi-Arabia-as-an-oil-producer-by-2020.html and http://www.bloomberg.com/news/2012-11-12/u-s-to-overtake-saudi-arabia-s-oil-production-by-2020-iea-says.html which is great for America but right now on Fox News they are tellin us US 'gas' (petrol) prices have risen 15 c in 3 days due to the unrest in Egypt - who's full of shit here?
Production has to be looked at along with consumption. Certainly the oil companies are at fault for a portion of the high prices, but as long as people will drive a block to the store for a loaf of bread, or think they need that fancy 4 wheel drive that gets 8 mpg but looks so cool and will never carry a 'working' load, gas prices will be high because people 'need' gas.
Well demand will always outstrip supply because that basically controls the price - how can they blame Egypt when the US is drilling more oil than the Middle East?
I'm confused here. US gas prices reflect billions in subsidies. If we were paying what we should be paying (aka the real free market price that includes not only the obvious, but also the cost to the environment of burning fossil fuels) gas would be a lot more expensive and alternative sources of energy (aka the sources that aren't going raise the temperature of the planet) would be competitive.
You're confused? It was a simple question, if the US is sourcing more oil than the Middle East, how can they blame Egypt for high prices which still by the way is less than half the price, if not a third of, we are paying in Europe. A US gallon is about 4 litres - $3.64 1 litre in France = €1.65 which is about $2.30 - $2.30 x 4 litres = $9.20 $9.20 in France / $3.64 in US In Europe we're getting right royally screwed for petrol and I think the UK is dearer than France, I know Ireland is!
Oil is pretty much a world market. It doesn't matter who produces more, it's the total production and consumption that count. A country's price is also affected by the relative currency strengths. It also depends on what the people investing in the futures market expect to happen, and whether they were previously right about what would happen now. It's complicated. Gasoline prices are running US$3.50/US gallon right now in my area (up from a short term dip below $3.20). Taxes are highly variable from state to state, so some people may be paying over $4. But why aren't we paying the much higher prices Europe pays, like we should be? Whose fault is it?
The oil companies and the oil speculators. It all is dependent on what they think might possibly happen in the future. Yes, we should be paying much more for gas. The oil subsidies here are ridiculous. The big oil companies have way too much control. Why do you think they get subsidized while alternative, non-polluting energy sources don't? Germany invests way more in solar power, and they are at roughly the same latitude as Alaska. I once read that a 100 square mile solar panel grid in the desert could supply all or most of our energy supply needs. But Big Oil is too entrenched.
Two words: Suez Canal. The Middle East supplies about a quarter of the world's crude oil output and over 2 million barrels of oil are transported through the Suez Canal every day, and that canal is controlled by... Egypt. Any possible disruption of the flow of oil through the Suez Canal is going to drive the price higher, much like the possibility of a company having delivery issues makes it's stock price drop. As far as gas prices being higher in say, France look no further than your own government for that. The fact is that raw gas prices are quite level across the word, the difference is the taxes that countries put on the fuel. For instance, France has about a 56% tax on it's gasoline, as opposed to about 17% for the US. Which is why you pay 8 dollars a gallon, and we pay 4. Oh, sorry, I forgot this was supposed to be another 'look how much the US sucks' thread. I'll try harder next time.
Is the US producing enough oil to meet total US demand? If not, they have to get it elsewhere - and conditions in that 'elsewhere' affect the price. It doesn't really matter how much the US produces in relation to other countries - what matters is what percentage of demand that production covers.
