More Reasons to increase ACTUAL supply.
Hey folks,
Happy Tuesday to you. Back in the Chair. Got in late Sunday, feeling OK. Not GREAT, but OK. Time to try to get into a semi normal routine at lease.
So it seems that the US Energy Battle has focused on Virginia as of late. Our friends over at Energy Tomorrow have a Great piece about this posted Friday U.S. Energy Policy is 'Stuck in Neutral' And Another Step Toward Offshore Drilling posted on Thursday. So why is this so important? Why is it so important that America use it's OWN Natural Resources, instead of throwing all this money at Alternatives and "Going Green?" What is the point?
The point is articles like THIS. From RTE Business - Oil lower on concerns over demand Monday, 15 March 2010 07:35
Oil prices extended losses in in Asian trade on worries of weak demand in the US, the world's biggest energy consumer.
New York's main contract, light sweet crude for April delivery, shed 42 cents to $80.82 a barrel. The benchmark futures contract had briefly topped $83 on Friday.
Brent North Sea crude for April was down 49 cents to $78.97 a barrel.
Oil prices fell on Friday after news of a surprise decline in consumer confidence in the US, triggering concerns about demand in the world's biggest economy.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74 as analysts expected.
OK. This all makes sense. I know many of you out there have been getting EXTREMELY upset over Gas going up over $2.80 again, when the Economy remains stagnant at best. This last two lines are WHY so many people DO get upset with Speculators, Traders, and "Big Oil" in general.
Meanwhile, the International Energy Agency raised its forecast for global demand in 2010 Friday citing an 'astonishing' growth trend of 28% in China as advanced economies emerge from recession.
The agency revised its forecast to 86.6 million barrels per day from its projection last month of 86.5 million - a 1.8% increase from 2009 demand levels.
Yeah I know. We here in America, losing our home, Jobs, and financial securities, WE DO NOT CARE about what is going on in China. But OIL IS a World Wide Commodity. Hence, it is controlled by Supply and Demand on that World Scale.
Now the raw estimates remain that the United States consumes about 20 million barrels of oil products per day (bbl/d) Of that, almost half is used for motor gasoline. The rest is used for Distillate Fuel Oil, Jet Fuel, Residual Fuel and other Oils. Each Barrel of Oil contains 42 gallons (159 L), which yields 19 to 20 gallons (75 L) of Gasoline. So, in the United States, something like 178 million gallons of Gasoline is consumed every day. If we have to stop driving as much, demand goes down. This SHOULD, in all logical sense, bring the Price of gas down. Yet, LOGIC and REALITY dictates, that if we reduce by 10 percent, yet somewhere like China INCREASES like 12 to 15 percent, OUR Gas Prices will either remain that same high level, or may even go up. Supply and Demand still very much in effect, just NOT the US controlling it.
So what do we do? DRILL HERE, DRILL NOW, USE OUR OWN RESOURCES! Remember what happened when Bush just said, "We will Drill." ???? Prices World Wide CRASHED. Over night. Gas prices started to plummet. Then the Libs go into office, and started playing games and stalling. Then Obama and Crew got in? Prices started to and continue to rise. We just mention drilling and adding to the Supply, prices react quickly. Imagine if we stopped talking about it, and actually DID.
Peter
Sources:
RTE: Oil lower on concerns over demand
Hey folks,
Happy Tuesday to you. Back in the Chair. Got in late Sunday, feeling OK. Not GREAT, but OK. Time to try to get into a semi normal routine at lease.So it seems that the US Energy Battle has focused on Virginia as of late. Our friends over at Energy Tomorrow have a Great piece about this posted Friday U.S. Energy Policy is 'Stuck in Neutral' And Another Step Toward Offshore Drilling posted on Thursday. So why is this so important? Why is it so important that America use it's OWN Natural Resources, instead of throwing all this money at Alternatives and "Going Green?" What is the point?
The point is articles like THIS. From RTE Business - Oil lower on concerns over demand Monday, 15 March 2010 07:35
Oil prices extended losses in in Asian trade on worries of weak demand in the US, the world's biggest energy consumer.
New York's main contract, light sweet crude for April delivery, shed 42 cents to $80.82 a barrel. The benchmark futures contract had briefly topped $83 on Friday.
Brent North Sea crude for April was down 49 cents to $78.97 a barrel.
Oil prices fell on Friday after news of a surprise decline in consumer confidence in the US, triggering concerns about demand in the world's biggest economy.
The University of Michigan's consumer confidence index dropped for the second consecutive month in March, to 72.5 from 73.6 in February, instead of rising to 74 as analysts expected.
OK. This all makes sense. I know many of you out there have been getting EXTREMELY upset over Gas going up over $2.80 again, when the Economy remains stagnant at best. This last two lines are WHY so many people DO get upset with Speculators, Traders, and "Big Oil" in general.
Meanwhile, the International Energy Agency raised its forecast for global demand in 2010 Friday citing an 'astonishing' growth trend of 28% in China as advanced economies emerge from recession.
The agency revised its forecast to 86.6 million barrels per day from its projection last month of 86.5 million - a 1.8% increase from 2009 demand levels.
Yeah I know. We here in America, losing our home, Jobs, and financial securities, WE DO NOT CARE about what is going on in China. But OIL IS a World Wide Commodity. Hence, it is controlled by Supply and Demand on that World Scale.
Now the raw estimates remain that the United States consumes about 20 million barrels of oil products per day (bbl/d) Of that, almost half is used for motor gasoline. The rest is used for Distillate Fuel Oil, Jet Fuel, Residual Fuel and other Oils. Each Barrel of Oil contains 42 gallons (159 L), which yields 19 to 20 gallons (75 L) of Gasoline. So, in the United States, something like 178 million gallons of Gasoline is consumed every day. If we have to stop driving as much, demand goes down. This SHOULD, in all logical sense, bring the Price of gas down. Yet, LOGIC and REALITY dictates, that if we reduce by 10 percent, yet somewhere like China INCREASES like 12 to 15 percent, OUR Gas Prices will either remain that same high level, or may even go up. Supply and Demand still very much in effect, just NOT the US controlling it.
So what do we do? DRILL HERE, DRILL NOW, USE OUR OWN RESOURCES! Remember what happened when Bush just said, "We will Drill." ???? Prices World Wide CRASHED. Over night. Gas prices started to plummet. Then the Libs go into office, and started playing games and stalling. Then Obama and Crew got in? Prices started to and continue to rise. We just mention drilling and adding to the Supply, prices react quickly. Imagine if we stopped talking about it, and actually DID.
Peter
Sources:
RTE: Oil lower on concerns over demand
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