Looks Like We May Be Prepping for War.

[Red Arrow]

and the oil companies hate democrats.

Assuming that is actually true and not just "nobody likes me", I wonder why.

[nathanm]

Assuming that is actually true and not just "nobody likes me", I wonder why.

I'm not vouching for the veracity of RM's assertion, but I wouldn't be terribly appreciative of environmental regs if I were them. The oil business is a dirty business and environmentally sound practices often cost more (to the oil company, anyway). Of course, my personal opinion is that they can go get bent because allowing them to externalize costs like that is yet another gigantic corporate subsidy we have in this country.

[Teatownclown]

RM is absolutely correct. Those powerless players in the oil and gas business may support the Dims. But in reality, inbreeding has always made industry Pubs hateful of the Dims in power.

I was at dinner two weeks ago with an industry "big wiggie" and shot down every single argument laid down before me on why Obama must go.
The others attending whispered to me later, "way to go".... I just had to hold back the race card which no doubt is the organic reason for that single individuals problem. The industry can't control Obama and hence their hatred for the guy.

I shouted out who killed the Kennedy's? It was a nut case who heard the voices of Southerners who had no respect for the President. And most of them were either paranoid of commies or absorbed in the hateful rhetoric spewed from leaders in the oil and gas industry.

[AquaMan]

I completely agree. The price of oil has always been used as a political weapon and the oil companies hate democrats.

We sit in the middle of oil country so I can see how you make that conclusion. I think you have the order incorrect though. We are in the midst of an area that hates democrats and most of our employment is in the oil industry. Therefore the oil industry is perceived to hate Dems. Otherwise how do you explain the hatred for a democratic president under whose leadership more wells have been drilled, more profits accumulated and less intervention foisted upon them than any president in the last decade? A republican led decade I might add.

I believe the oil industry is as confused as its ever been and is looking for answers like the rest of us. They latch on to what ever the latest craze seems to be to explain the industry. Speculators, global markets, lack of refining capacity, regulations, too little drilling, too little exploitation of domestic sources, transportation problems, aging systems...you name it they've used it. Prices will drop but the trend remains.

Any one person who thinks they know the real problems and thus the real answers is probably talking the loudest and knows the least about either topic.

[Gaspar]

I completely agree. The price of oil has always been used as a political weapon and the oil companies hate democrats.

So, we're talking a global conspiracy?

Our domestic production has increased modestly, but the percentage it contributes to satisfying our total demand is anemic.  We produce less than half the petroleum energy we demand, and do not have the refining capacity to process it.  So, we pull a rabbit out of our hat by selling and shipping a portion to other countries to be refined and then repurchased in the form of gasoline and diesel, and reshipped back to the us.  All because it's too expensive to permit a new refinery.

If anything, the petroleum industry is 100% dependent on Democrats, as are the massive tankers they own, and the regulations that bar entry from any new independents or vertical producers.

Democrats have created the protective layer here in the US that allows other countries develop petroleum based economies with little or no concern for the environment, human rights or the health, wellbeing, and freedom of their people.

Any manufactured idea that big oil is conspiring against Democrats is laughable.  Democrats are the tit they feed from.

[Townsend]

Our domestic production has increased modestly, but the percentage it contributes to satisfying our total demand is anemic.  We produce less than half the petroleum energy we demand, and do not have the refining capacity to process it.  So, we pull a rabbit out of our hat by selling and shipping a portion to other countries to be refined and then repurchased in the form of gasoline and diesel, and reshipped back to the us.  All because it's too expensive to permit a new refinery.

For the first time since the 50's we're exporting excess gasoline.

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

Woops, bad memory...first time since 1949.

[Teatownclown]

For the first time since the 50's we're exporting excess gasoline.

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

Woops, bad memory...first time since 1949.

Shameful....and the Keystone Pipeline is an election year shenanigan.

Refineries pay no taxes and nobody complains....not about the welfare nor the air we breathe.

[Teatownclown]

So, we're talking a global conspiracy?

Our domestic production has increased modestly, but the percentage it contributes to satisfying our total demand is anemic.  We produce less than half the petroleum energy we demand, and do not have the refining capacity to process it.  So, we pull a rabbit out of our hat by selling and shipping a portion to other countries to be refined and then repurchased in the form of gasoline and diesel, and reshipped back to the us.  All because it's too expensive to permit a new refinery.

If anything, the petroleum industry is 100% dependent on Democrats, as are the massive tankers they own, and the regulations that bar entry from any new independents or vertical producers.

Democrats have created the protective layer here in the US that allows other countries develop petroleum based economies with little or no concern for the environment, human rights or the health, wellbeing, and freedom of their people.

Any manufactured idea that big oil is conspiring against Democrats is laughable.  Democrats are the tit they feed from.

Right fielder....

[Gaspar]

For the first time since the 50's we're exporting excess gasoline.

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

Woops, bad memory...first time since 1949.

So?

If other countries are willing to purchase our gas at a higher price, how does that hurt us?  It doesn't change the fact that we are still importing gasoline.

Do you think that because we are exporting the product, we aren't also importing it?

Do you think that this means we somehow have a glut?

[Townsend]

So?

If other countries are willing to purchase our gas at a higher price, how does that hurt us?  It doesn't change the fact that we are still importing gasoline.

Do you think that because we are exporting the product, we aren't also importing it?

Do you think that this means we somehow have a glut?

We are exporting more than we are importing for the first time since 1949.  Our fuel use is down 2.5% in 2011.

Just pointing it out.

[Gaspar]

We are exporting more than we are importing for the first time since 1949.  Our fuel use is down 2.5% in 2011.

Just pointing it out.

Wonderful.

Does not change the fact that we are still importing over half of our petroleum, nor does it change the fact that we are exporting a large portion of that for refining, nor does it change the fact that we are then importing the end product.

Or do you want to celebrate the push towards energy independence through economic decline? 

[Conan71]

I completely agree. The price of oil has always been used as a political weapon and the oil companies hate democrats.

BP sure threw a lot of money into Obama's lap in 2008.

[dbacks fan]

BOT intersting article. While nothing specific, it could explain why Obama was having these discussions.

http://www.azcentral.com/news/articles/2012/03/21/20120321iran-has-conducted-surveillance-nyc-police-say.html

[AquaMan]

Wonderful.

Does not change the fact that we are still importing over half of our petroleum, nor does it change the fact that we are exporting a large portion of that for refining, nor does it change the fact that we are then importing the end product.

Or do you want to celebrate the push towards energy independence through economic decline?  

Enough already. You are wrong to assert that Democrats keep oil companies from building refineries because of onerous permitting. It is simple economics and to think otherwise is naive or political rhetoric. The idea that oil companies wouldn't or couldn't build refineries here because of regulations is balderdash. They have no problem expanding, and renovating century old refineries already in operation because the basics are already there to make it profitable to do so. New ones, not so much.

Oil companies have a choice of building refineries that don't pollute their own backyard and poison their own people and pay dearly to do so because our standard of living requires we actually pay decent wages.  Or of making use of cheap transportation (pipelines and tankers which you own and lease to other producers as well) to have the refining job done outside the borders at facilities you have financial interests in and could care less about their people and ecology. One costs you money and opens you up to litigation over Bhopal type catastrophes. Your own people, Democrats, Libertarians, Republicans and Independents will fight you if you try and build one near their city. The other method costs you less money and gives you access to global markets and lower tax rates in growing industrial countries with slave wages.

Hmmm. Decisions, decisions....

[heironymouspasparagus]

Our domestic production has increased modestly, but the percentage it contributes to satisfying our total demand is anemic.  We produce less than half the petroleum energy we demand, and do not have the refining capacity to process it.  So, we pull a rabbit out of our hat by selling and shipping a portion to other countries to be refined and then repurchased in the form of gasoline and diesel, and reshipped back to the us.  All because it's too expensive to permit a new refinery.

There is a bigger reason we ship and import oil/gas.  You must have missed - or didn't read - my note some time back about how we now export more gasoline than we import. 

Oil is fungible.  Arguably the MOST fungible of commodities.  Not much to do with or without new refineries, beyond the point that the oils will just not make a new one so they can wait until another one or two blow up, then capacity is reduced to the point of actually being a big problem, and just say, "See...we told you...".  When the reality is that a new refinery can be made starting today.  IS cost effective, and will pay itself back in a very reasonable time.  ROI is very good.  They are holding the idea hostage to make a political point.  As they have done for decades.

If somehow solar and wind manage to do an "end run" around big oil, then you will see them scrambling and jumping through hoops to get refineries built and "cheap" oil out of the ground.  Until then,...well, just guess what they got us by  (they are short...).