High Gas Prices Result of Huge U.S. Oil/Gas Exports; New Drilling/Pipelines Obviously Not Meant for U.S.

 

U.S. oil and gas exports are at their highest in 62 years! http://sfgate.bloomberg.com/SFChronicle/ Story?docId=1376-M03ZSG0YHQ0X01-5JR0G692MBGTE60AIHP5SP9EJ8.  Demand for oil/gas from foreign countries has increased tremendously while the U.S. has drastically reduced demand over a short period of time. What does this mean? It means that the big push to open up drilling in pristine Arctic wildlife areas, or to abscond land from private citizens in order to run a new pipeline, or the rounding up and slaughter of our free range wild mustangs, bison, wolves, etc., in order to clear them from the land like scooping up garbage instead of living creatures has nothing at all to do with our own energy welfare but for foreign countries.  It means we’ve pretty much gained energy independence from terrorist nations.  It means that we’re not running out of oil for our own consumption or that we need to drill baby drill. It simply has to do with big oil supplying that which we no longer need to foreign nations for big profits because there is demand out there. And when supply keeps up with increasing demand prices go up everywhere. It’s economics 101 http://www.investopedia.com/university/economics /economics3.asp#axzz1ny6hzw4F plain and simple that has little to do with us, except the fact we pay for it dearly at the pumps, while we still subsidize big oil. http://thinkprogress.org/green /2012/03/01/436001/obama-tells-congress-to-eliminate-outrageous-big-oil-tax-breaks/.

Now do we understand why there is such an outrage among some of us over subsidies, over the destruction of wildlife, and over the destruction of land for drilling/pipelines for a private, wealthy industry like big oil? Subsidies are taxpayer dollars to help big oil find new places to drill, places we do not want them to drill, places we do not want pipelines, yet we help these mega, mega rich private entities with our money. Feels like some sort of investment to me. We helped the U.S. auto industry out one time with a finite sum of money, most of which has been paid back, but not before there was a huge outcry that we’d better get it back and we shouldn’t have done that. Yet our taxpayer dollars consistently fund big, mega rich entities like big Ag and big Oil. Our payback right now from big oil is a continual increase in gas prices at the pumps. One would think that we should have some say so over that. Oh that’s right in most of the commercials about taxing big oil, or stopping subsidies, the people on the street remark, “Oh, don’t do that. That would mean a big increase for us and we can’t afford it.” So who’s the bully here and why is the bully so free to raise prices whenever? Oh that’s right too, we’re told those pesky government regulations/interference hinder big business and jobs. What’s happening at the gas pumps is what unfettered capitalism looks like. If Obama stepped in on our behalf, all hell would break lose. http://www.blogsmonroe.com/world/2012/01/oil-lobbyist-publicly-warns-president-obama-xl-pipeline-or-lose-presidency/.

Now that we’ve seen the proof that there is enough U.S. oil/gas to export so much of it, we must also be aware that any new pipelines from new sources of oil, like Canada’s tar sands via the XL pipeline, isn’t destined for us either. As I explained in another blog the XL pipeline will be carrying filthy tar sands to China mostly http://www.blogsmonroe.com/world/2011/11/xl-pipeline-looks-to-be-a-good-deal-for-china-not-americans-alternate-route-through-british-columbia-being-considered/.  It will cause demand for the stuff to go sky high, with a huge supply in the waiting, and we’ll see another hike at the pumps.

It’s almost as if this is big oil’s payback to us for declining use of their product for environmental reasons. It looks that way in congress too with lackeys for big oil stifling any incentives for wind projects even though wind looked like the most promising alternative for the U.S.  The U.S. mid-section is a corridor of constant wind, as well as, our huge shoreline. But congress stifled wind subsidies/incentives http://www.democraticunderground.com/101454189. And solar, well, solar is quiet right now after the dragging of feet to get Solyndra going before China flooded the market with their cheap, incomparable products http://www.blogsmonroe.com/world/2012/01/solyndra-a-model-of-why-the-u-s-wont-be-a-contender-in-the-new-world-order/.  All of these scenarios–threatening commercials to raise prices if subsidies decline or taxation increases, stamping out the competition through congress, and creating more and more demand abroad, look as if we’re being coerced back to using oil. And if demand for our oil gets too outrageous, a shortage crisis will emerge—MARK MY WORDS—where it will be imperative that we drill everywhere and anywhere. We will be told our own resources are dwindling and there just aren’t enough alternatives to take up the slack. What a setup. If incentives to create and nurture a new green sector for the U.S. are cut out of the picture what choice will we have though? Looks like a plan to me.

Throughout my previous blogs I made comments about the progression of control I was seeing relative to energy and the environment. I began in the Bush era by saying, “The kings are polishing their crowns. From there it was, “The kings have donned their crowns but just haven’t announced it yet.”  When SCOTUS announced corporations are considered citizens, my comment was, “This is the announcement (new kings).” Now we’re seeing a little more clearly those that are sporting crowns and one of them is big oil, king and ruler of U.S. energy, whether we want to move away from it or not.

Read more about U.S. oil exports:

http://www.usatoday.com/money/industries/energy/story/2011-12-31/united-states-export/52298812/1

http://www.reuters.com/article/2011/11/30/column-us-exports-energy-independence-idUSL5E7MU6OT20111130

 

 

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7 thoughts on “High Gas Prices Result of Huge U.S. Oil/Gas Exports; New Drilling/Pipelines Obviously Not Meant for U.S.

  1. WE feed the world and that creates and supports many jobs for us. Lets create jobs here by getting more oil, refining gas and sell it to whoever wants it. JOBS FOR US!!!!!

    Also lets learn to convert natural gas to run ALL the cars…The auto companies are ready to roll with that…just need the stations. This is MUCH cheaper then oil, would seriously injure the middle east, and we have all we’d ever need!!!!!!! Can you and I agree to that?

  2. You’re totally misinformed. New pipelines will create only 20,000 jobs over 3 years and they are all temporary. None of the new oil is for us and will raise prices at the pump. Trans Canada who is pushing for the XL pipeline already admitted the jobs aren’t there as they first suggested. Read more of my older posts this year. There are links to the Washington Post about their rescinding their original estimate. Second tier jobs aren’t there either. Most of the material for that pipeline has already been purchased.

    As for more jobs when greater demand for our goods is felt world wide–we’re already doing that and there isn’t or hasn’t been a big call for more jobs in the oil industry. And big gas is a fallacy. That’s not there either. It costs more to get the stuff than is there and it is so cheap it’s not worth it. So big gas utilities like Chesapeake Energy buy up leases for U.S. land, taking citizen’s property through eminent domain, and turn right around around and sell those leases off to China. But first they hype up the big gas reserves knowing full well it’ll take a fortune to get it, and then it might not be as much as expected. China is buying these leases for up to 5 X what Chesapeake originally paid for them. It’s the new mortgage bubble only this time it’s overhyped gas leases. China will not be happy at all because they are being swindled no differently than with bad mortgage risk.

    Stay tuned for a blog about that big gas hype. And please, do some research, and get informed and quit passing around bogus info about all the lost jobs. If tar sands oil creates a bunch of new jobs then everyone in Detroit should be working. The big Marathon Oil expansion is for tar sands oil. It’s been ongoing. People are still unemployed here. There’s your proof.

  3. So what is your problem with “big Gas?”

    http://online.wsj.com/article_email/SB10001424052702304177104577305611784871178-lMyQjAxMTAyMDIwNzEyNDcyWj.html?mod=wsj_share_email

    YOu taken down my last post.

    20,000 temporary jobs? Even f that were so tell that to the guy who has no work. Listen, I’m all for green energy, but if you think it creates jobs for the long term your not thinking correctly. Solar farms employe next to no one, the sun does the work. Wind farmers employe next to no one, the wind does the work. I’m all for both, but dont call them a job creator if you are unwilling to call 20,000 3 years jobs for a pipeline “nothing.”

    Also the earth has stopped warming and the models say it should be warmer.

    Also what did you mean when you said this to me? “And please, do some research, and get informed and quit passing around bogus info about all the lost jobs.”

    When have have i done that?

  4. “that some companies such as Oklahoma City’s Chesapeake Energy Corp. are reducing investment and gas drilling.” That little line there downplays the fact that Chesapeake Energy is the 2nd largest natural gas producer in the U.S. with over a million acres tied up in leases. And Chesapeake has sold off those leases at upwards of 5x the acquisition price to China because the gas boom isn’t a boom at all. It’s too cheap and costs more to produce than the company can get for it. Chesapeake already knows that those big gas pockets don’t usually pan out. So our land that energy companies like Chesapeake acquire, many times through eminent domain, are turned over as quickly to China. The hype on natural gas is to entice foreign companies to buy up the leases. It’s a bubble no different than the mortgage bubble and China isn’t going to be happy at the outcome.

    And the way fracking is still being done is unproven and dangerous for U.S. aquifers. We need fresh water to live. We can’t drink natural gas. I began the blog about natural gas last year and never got around to finishing it. I had several reputable sources that this was happening including natural gas utilities. But Rolling Stone just came out with the story in a recent issue. It’s extensive and centers on Chesapeake Energy.

    http://www.rollingstone.com/politics/news/the-big-fracking-bubble-the-scam-behind-the-gas-boom-20120301.

  5. http://www.torontosun.com/2012/06/22/green-drivel And this about finishes the arguement. He calls your side a religon as many have for some time…..somethis IS happeneing but to the extent is not known and the “arguement is certainly not over.” SORYY you’ve wastesd so much time an energy is belittling the rest of us when you sides time could have been spent doing something constructive. I wonder how AL Gore feels today.

  6. The first factor that makes up the price of gas at your local station is crude oil suppliers. This makes up about 59% of the price you pay for gas and it is determined by the world’s oil-exporting countries, particularly OPEC, the Organization of the Petroleum Exporting Countries. The amount of crude oil that these countries produce determines the price per barrel of oil.:-

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