I am so old, I remember when we were told to "Drill, Baby, Drill," and we'll achieve "Energy Independence," and low, low domestic oil and gasoline prices. Seems like only yesterday:
Since 2008, we certainly HAVE been drilling. We've fracked up every place we can sink a drill into-- onshore, and offshore, and by-gum-- It's WORKED!
We're producing TONS of oil, again. We're producing more Domestic Oil than we have in decades. WOOT! Let the good times ROLL! Happy days are here, again! $1.00 Gas is on the way! Hurray!!! Hurray!!
Waitaminit, here. Something is horribly wrong with this picture. It doesn't add up to what we were told only four years ago.
Today, WTI is at $107.12 per barrel as I type, and Brent is at $123.80. I am still paying over $3.60 per gallon of gasoline.
US Demand remains at its lowest in decades.
We all know the concept of Supply and Demand: When Supply is High and demand low, prices drop, and vice-verse. But, this concept is now turned on its head, and inside-out.
As it stands, oddly enough, our beloved Oil Corporations are EXPORTING our Domestic Surplus, while CONTINUING to IMPORT Foreign Oil. The US is now a NET EXPORTER of oil for the first time since 1949.
Wall Street Journal
Quote:U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years.
Bloomberg News: http://www.bloomberg.com/news/2012-02-29...-2011.html
A combination of booming demand from emerging markets and faltering domestic activity means the U.S. is exporting more fuel than it imports, upending the historical norm.
According to data released by the U.S. Energy Information Administration on Tuesday, the U.S. sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels.
That the U.S. is shipping out more fuel than it brings in is significant because the nation has for decades been a voracious energy consumer. It took in huge quantities of not only crude oil from the Middle East but also refined fuels from Europe, Latin America and elsewhere to help run its factories and cars.
As recently as 2005, the U.S. imported nearly 900 million barrels more of petroleum products than it exported. Since then the deficit has been steadily shrinking until finally disappearing last fall, and analysts say the country will not lose its "net exporter" tag anytime soon.
"It looks like a trend that could stay in place for the rest of the decade," said Dave Ernsberger, global director of oil at Platts, which tracks energy markets. "The conventional wisdom is that U.S. is this giant black hole sucking in energy from around the world. This changes that dynamic."
Quote:The U.S. exported more gasoline, diesel and other fuels than it imported in 2011 for the first time since 1949, the Energy Department said.
USA Today: http://www.usatoday.com/money/industries...52053236/1
Shipments abroad of petroleum products exceeded imports by 439,000 barrels a day, the department said today in the Petroleum Supply Monthly report. In 2010, daily net imports averaged 269,000 barrels. U.S. refiners exported record amounts of gasoline, heating oil and diesel to meet higher global fuel demand while U.S. fuel consumption sank.
Quote:Looking at your heating bills or gas prices, you may find it surprising that the United States is enjoying a mini oil boom. It's producing more crude oil and, for the first time in decades, has become a net exporter of petroleum products such as jet fuel, heating oil and gasoline.
The U.S. exported more oil-based fuels than it imported in the first nine months of this year, making it likely that 2011 will be the first time since 1949 that the nation is a net exporter of such goods, primarily diesel.
That's not all. The U.S. has reversed another decades-long trend. It began producing more crude oil in 2008 than the year before and accelerated that upswing 3% in the first nine months of this year compared with the same period in 2010. That production has helped reduce U.S. imports of crude oil by about 10% since 2006.
"It's dramatic. It's transformative," Edward Morse, a former senior U.S. energy official who now directs global commodities research at Citigroup, says of the historic shifts. He says the U.S. is importing a smaller share — 49% in 2010, down from 60% in 2005 — of the oil it uses, adding: "We're moving toward energy independence."
Yeah. "Drill, Baby, Drill," "Domestic Energy Independence, Self-Reliance and Self-Sufficiency," "Lower Gas Prices." So many people fell for that bullshit.
And here we are.
So. We're EXPORTING our dwindling, hard-earned, difficult and expensive to extract Domestic Oil Supplies to countries like China, and other places not overly-friendly to the U.S., and all the while, we are CONTINUING to IMPORT oil from places definitely not friendly to our better interests, and all the while we're paying PREMIUM PRICE for oil, and oil products.
Call me nutty, but this just simply does not seem like a sound long-term strategy for our Energy Future. Seems to me that such costly, and destructive Oil Production should AT THE LEAST provide for some price reduction, and a very needed break to those who can really boost the REAL ECONOMY. Lower fuel prices would allow for cheaper domestic transportation costs to Small Businesses, allowing them to expand, and hire more employees, and on, and on. Capping those new discoveries of known reserves would make for real long-term Domestic Energy Self-Sufficiency Policy.
But Wall Street, and our Oil Corporations don't seem to give a rat's ass about long-term policy or planning, or the Good of the Country any more-- it's all short-term, short-sighted gains. Gimme mine, screw the future, screw everyone else.
And the "Drill, Baby, Drill" crowd bought it all-- hook, line, and sinker.
I'll take the slings and arrows from those supporters of Sarah Palin's legs, right now.
But ten years from now, when those fracked shale oil wells are all played out, and sold off to Foreign Countries
; and the Ground Water and Fresh Water Aquifers are all polluted from the fracking process; and we all need to drink Corporation-produced bottled water, and shower with tanked-in Corporation-Produced fresh water; and the crops are dying because we're irrigating with corrupted water; and the LLC corporations who polluted those fresh water supplies are bankrupt; and the Conglomerate Corporations that set up those front companies wipe their hands of the problem in our Courts of Law, I hope you'll remember this post, and realize how badly you were duped.
And yes-- I am quite pissed that Obama's SEC, Department of Interior, and Department of Justice are allowing all this to continue.
Oil Independence and lower Domestic Energy Prices for you and me, or Small Businesses was never part of The Plan for either Party's Agenda. Corporate Profits, and their Super-PAC donations is all that concerns those in power right now.
This is a real problem, and BOTH Parties are in bed with the Corporations to continue it. Yes, I blame Palin and the Tea-Partiers for making it happen, but it is much, much bigger than that
. WE THE PEOPLE must come together and demand this bullshit be corrected for the Long-Term Good of the Nation.
They can spout "Energy Independence," or they can sell our Oil to not-so-friendly Countries. They cannot have it both ways while charging US, down here, a PREMIUM.
They either want the U.S. Economy to grow, and WE THE PEOPLE to live in prosperity, or they want us to simply live enslaved to Corporate interests.
We have a very serious Reality Dysfunction in this Country of ours.