And there was much rejoicing in the land.... Gas Prices

[Strychnine]

Why don't we just stop importing, fuck opec.

Because math.


In 2013 the US produced around 7.5 million barrels of crude per day.

In 2013 the US consumed an average of 18.89 million barrels per day.

[Nash B.]

Can you expand on that?

Because it's cheaper to import certain goods produced outside the US than it is to produce those goods here.

Because math.

We can just use Texas Devil Dog math and it'll work out.

[Ruffdaddy]

Can you expand on that?

Lol seriously?

[Baron Von Crowder]

Lol seriously?

yes, please.

[Ruffdaddy]

yes, please.

You're worse off than I thought you were if you truly don't understand...

Do you understand why or not?

[Baron Von Crowder]

You're worse off than I thought you were if you truly don't understand...

Do you understand why or not?

I'd really like you to explain it.

[Ruffdaddy]

I'd really like you to explain it.

Lots of reasons, starting with the data that strych posted.

Going further than that, most recent US oil production is from unconventional sources. They are simply more expensive to produce.

Combine the US position as a net importer of crude with a product that is already more expensive to produce, and prices would raise if we didn't allow imported crude.

[Baron Von Crowder]

Lots of reasons, starting with the data that strych posted.

Going further than that, most recent US oil production is from unconventional sources. They are simply more expensive to produce.

Combine the US position as a net importer of crude with a product that is already more expensive to produce, and prices would raise if we didn't allow imported crude.

I figured you were going that route.

We cant stop importing oil because we dont produce enough, so we have to import it. The price would go up due to supply and demand if we stopped importing, morose because of a shortage than cost to produce. Sure, cost to produce plays a part, but by your theory, there is no need to produce any in the US at all, since we can import it cheaper than we can produce it.

[Ruffdaddy]

I figured you were going that route.

We cant stop importing oil because we dont produce enough, so we have to import it. The price would go up due to supply and demand if we stopped importing, morose because of a shortage than cost to produce. Sure, cost to produce plays a part, but by your theory, there is no need to produce any in the US at all, since we can import it cheaper than we can produce it.

Yep...figured you were just being a twat.

That's why I first alluded to strychs data...and that's what the term net importer means. I'm sorry you can't comprehend the correlation of net importer and supply and demand.

And you're a completely wrong in claiming "my theory" means there would never be oil production in the US. US producers will produce if the price per barrel is high enough period. Are you seriously saying that someone won't make a profit because someone else has high enough margins?

Regardless of supply and demand, oil is more expensive to produce in unconventionals so it will always be more here..especially of you give us producers a monopoly. But if you also reread what I said, I'm saying it's a combination of many factors. You're trying really hard to make an argument from nothing because I'm saying price is driven by both, even if you remove one or the other element...it's more expensive here.

[Baron Von Crowder]

Because the us producers would have to charge more for the same product. This can be said about any import that is also available in the US.

Lots of reasons, starting with the data that strych posted.

Going further than that, most recent US oil production is from unconventional sources. They are simply more expensive to produce.

Combine the US position as a net importer of crude with a product that is already more expensive to produce, and prices would raise if we didn't allow imported crude.

Yep...figured you were just being a twat.

That's why I first alluded to strychs data...and that's what the term net importer means. I'm sorry you can't comprehend the correlation of net importer and supply and demand.

And you're a completely wrong in claiming "my theory" means there would never be oil production in the US. US producers will produce if the price per barrel is high enough period. Are you seriously saying that someone won't make a profit because someone else has high enough margins?

Regardless of supply and demand, oil is more expensive to produce in unconventionals so it will always be more here..especially of you give us producers a monopoly. But if you also reread what I said, I'm saying it's a combination of many factors. You're trying really hard to make an argument from nothing because I'm saying price is driven by both, even if you remove one or the other element...it's more expensive here.

Wait, How was I ever wrong here? How have I never understood what we are talking about?

I understand that us unconventional wells take more money to run, and thus $/brl proffit is higher. Nobody was arguing that but you. Either way, it doesnt matter if they can produce it for $.05 a brl or $100 a brl, the shortage will create the increase. Also, if the oil companies cant suck it out of the ground and make a profit at whatever oil is selling for, they wont. Then there will be a shortage, and the price goes back up. It's pretty damn simple economics.

[Ruffdaddy]

Wait, How was I ever wrong here? How have I never understood what we are talking about?

I understand that us unconventional wells take more money to run, and thus $/brl proffit is higher. Nobody was arguing that but you. Either way, it doesnt matter if they can produce it for $.05 a brl or $100 a brl, the shortage will create the increase. Also, if the oil companies cant suck it out of the ground and make a profit at whatever oil is selling for, they wont. Then there will be a shortage, and the price goes back up. It's pretty damn simple economics.

Are you saying cost to recover reserves has no bearing on price?

[Baron Von Crowder]

Wait, How was I ever wrong here? How have I never understood what we are talking about?

I understand that us unconventional wells take more money to run, and thus $/brl proffit is higher. Nobody was arguing that but you. Either way, it doesnt matter if they can produce it for $.05 a brl or $100 a brl, the shortage will create the increase. Also, if the oil companies cant suck it out of the ground and make a profit at whatever oil is selling for, they wont. Then there will be a shortage, and the price goes back up. It's pretty damn simple economics.

Are you saying cost to recover reserves has no bearing on price?

[Ruffdaddy]

Then what on earth were you trying to argue with me about in your first response regarding my "angle".

[Baron Von Crowder]

Then what on earth were you trying to argue with me about in your first response regarding my "angle".

I asked you to define why oil companies would raise prices, like there's one fat dude in a stetson smoking a cigar and setting the price of oil from his office.

[Ruffdaddy]

Yep...making absolutely no sense like always...just trying to argue.