Gas prices- food for thought

Mike (WA) · Jan 12, 2012

This was posted on another board I frequent. Fits in with the revelation a few days ago that our single biggest export is now fuel (primarily gasoline and diesel)- exporting so much that we essentially wouldn't need foreign oil if we weren't shipping it out. What's up with that?
Poke here

rrlund · Jan 12, 2012

NAFTA. We get the bulk of our imported oil (we only import 47% now by the way) comes from Canada and Mexico. We import their oil and in exchange,we refine it and send back the refined product. Simple as that. We're exporting ethanol to Brazil too by the way.

Old Roy · Jan 12, 2012

Simple.. we were forced into world trade because our leaders ran out of money, and now we owe other countries that now holds the deed to the US.

LAA · Jan 12, 2012

Huh, I guess all the corn and wheat exports ought to be stopped as well so that the only competition for those commodities is within the borders of the United States, the guy that wrote the referenced article is espousing socialist nonsense, in a free market economy people and companies sell the product of their labors and investments to the highest bidder, period.

5020s rock · Jan 13, 2012

this is a good topic (and complicated im sure)
i heard that on the radio. we are exporters of gas.....i heard this driving into the station to gas up with 3.25 gas (a month ago). gas has been over 3 for what 3 yrs now? it makes me mad and doesnt add up...with basic economic sense.

Dodgeit · Jan 13, 2012

(quoted from post at 06:59:10 01/13/12) this is a good topic (and complicated im sure)
i heard that on the radio. we are exporters of gas.....i heard this driving into the station to gas up with 3.25 gas (a month ago). gas has been over 3 for what 3 yrs now? it makes me mad and doesnt add up...with basic economic sense.

I felt much the same until I heard a talking head say that the same would be true if the US stopped exporting Gasoline. Because of the following reason(s)

Cause=US stops exporting gas. Effect=price drops

Cause=price drop. Effect= less gas produced to meet demand= less oil needed=less oil imported / produced=refining output drops=higher prices at the pump because of more demand than supply. It's a vicious circle that will not end until the world decides that only [b:1eb09d5865]pertrolium products [/b:1eb09d5865][b:1eb09d5865]producers[/b:1eb09d5865] can buy oil on the open market. as it stands now anybody with a few bucks can buy oil to hedge against the declining dollar. If only refiners could buy oil and gas stations could only buy refined products, there would no wild swings like you see today. Gasoline would still be higher due to world demand. But probably around $1.80 ish per gallon. All the rest is your hedge / retirement fund managers trying to do what they are paid to do.

Just my opinion, no need to get upset if you don't agree

Gas prices- food for thought

Mike (WA)

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rrlund

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Old Roy

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LAA

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5020s rock

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Dodgeit

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