Oil exports are rising, and this is KEEPING GAS PRICES HIGH

[Enrique]

Posted here because the GOP idiots and the debate moderators are all debating a fantasy energy situation.

http://www.latimes.com/business/la-fi-gas-prices-20110907,0,3637683.story

By Ronald D. White, Los Angeles Times

September 7, 2011

Oil prices have fallen, but U.S. motorists aren't benefiting because the nation's refineries continue to boost exports and reduce supplies available domestically.

The results could be seen in the Energy Department's weekly survey of service stations around the U.S. In California, the average price of a gallon of regular gasoline jumped 13.5 cents in the last week, to $3.944, the Energy Department said. That's also 90.3 cents a gallon higher than the average a year earlier.

Nationally, the Energy Department said, the average price climbed 4.7 cents a gallon to $3.674 over the last week — 99.2 cents higher than a year earlier.

"The U.S. petroleum balance of trade continues to shift in a sea change that is both literal and figurative," said Tom Kloza, chief oil analyst for the Oil Price Information Service. "For the 10th week in a row, Energy Department numbers show that the country exported considerably more refined products cargoes than were imported."

(...)

[orpupilofnature57]

1. Ship it around the world or to Iraq ,it's all offshore to me.

[texastoast]

2. China is thirsty. And the American oil companies want to accommodate it

It, India, or whomever. And the oil companies will tear up the U.S. to make an extra buck overseas. When will people get that our oil companies do not give a flying fuck about the U.S.?

I saw a bumper sticker on a car here saying, "Drill Here. Drill Now. Pay Less." CLEWLESS.

[krispos42]

3. They are not just clueless...

...they actually have a negative value.


If they had a clue, they'd increase to the level of clueless.

[happyslug]

4. Mexico has always been a prime market for US refined oil

Mexico has always shipped is oil to Texas to refine, and then import it back. With recent drop in Mexican oil production, I suspect this is a good area where exports of refined po; have increased to (Remember the issue is exporting of REFINED oil, NOT export of oil actually from wells in the US, both Mexico and Venezuela export crude to Texas to refine, and import the refined oil back to their own countries to sell.

Thus the real issue is who is buying the refined oil? The Article says Central and South America, which can include Columbia and its recent increase in the use of Helicopters to put down various revolts. Venezuela and Columbia have suffered some recent droughts, forcing them to cut back electricity do to the dams that produce the electricity are extremely low. I suspect this is the main reason, both the Government of each country and the people in those countries have turned to Oil to run generators till the dams are full again.

http://green.blogs.nytimes.com/2010/03/09/venezuela-looks-to-wind-and-nuclear-power-amid-drought-and-hydropower-slowdown/

http://news.nationalgeographic.com/news/2010/03/photogalleries/100305-church-exposed-drought-venezuela-pictures/

The drought ended in the beginning of 2011, but demand for electricity still exceeds supply:
http://blog.inkerman.com/index.php/2011/06/20/venezuela-energy-crisis-blackout-infratructure/

Mexico has had a drought this summer:
http://latimesblogs.latimes.com/laplaza/2011/06/mexico-weather-drought-dry-rain-season-tropical.html

The problems with any drought in any country with a modern infrastructural (And the continuing problem with electricity supply in Venezuela even as the drought ended there) is much of modern electrical power comes from Hydro electrical plants. Such plants stop producing electricity when the water runs out. In such situation is is common for people to opt for Generators powered by oil to provide the electricity they want. This is complicated in Mexico given the general unrest in Mexico, so people will protect their electrical supply by buying generators and oil to run that generator. Together this adds up to increase demand for refined oil products AND in most situation they are willing to pay any price for the oil.