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ebuddy · Oct 7, 2012, 03:19 AM

Originally Posted by Wiskedjak

Do you honestly believe that the untapped US domestic supply is enough to put a dent in the global supply that will force global costs to drop?

Hard to know for certain. If you take our consumption out of the equation by producing domestically, we could bring our costs down. We could also export more of the commodity which I believe could skew speculation downward.

Wiskedjak · Oct 7, 2012, 07:15 AM

Originally Posted by ebuddy

Hard to know for certain. If you take our consumption out of the equation by producing domestically, we could bring our costs down. We could also export more of the commodity which I believe could skew speculation downward.

In order to reduce domestic consumption through domestic production, wouldn't you have to force the companies to sell on a domestic market (which doesn't exist presently) rather than sell onto the much more profitable international market?

As for skewing prices downward through export, my understanding is that the volume available for extraction in the US is most likely a drop in the bucket compared with international quantities. If that's the case, any domestic production would likely have very little effect on international prices.

subego · Oct 7, 2012, 12:32 PM

Originally Posted by hyteckit

There's a gas shortage in California.
If your car needed gas, you option is to fill up at the closest gas station unless you want to risk running out of gas and having to walk or call a tow truck.
Some stations are just price gouging.

I'd have to pin this on the shortage rather than gouging. Specifically, it looks like some stations didn't alter their prices enough and ran out.

This station probably doesn't mind raising their prices so high because they have so little to begin with.

ebuddy · Oct 7, 2012, 12:38 PM

Originally Posted by Wiskedjak

In order to reduce domestic consumption through domestic production, wouldn't you have to force the companies to sell on a domestic market (which doesn't exist presently) rather than sell onto the much more profitable international market?
As for skewing prices downward through export, my understanding is that the volume available for extraction in the US is most likely a drop in the bucket compared with international quantities. If that's the case, any domestic production would likely have very little effect on international prices.

It's my understanding that with the development of new extraction techniques such as fracking, there's a wealth of resources available in the US (Kansas alone) that rival the global market and could have quite an impact not only on domestic production, but would be more readily available for usage in the US market without as much in transport logistics. One thing's for sure, at the least it would employ a lot of people. It's a something-policy in contrast with the nothing-policy status quo and I'd like to see the US pursue this ideal.

ShortcutToMoncton · Oct 8, 2012, 06:38 AM

You're talking about natural gas, aren't you? The US has massive natural gas resources that should be able to be accessed by techniques such as fracking - assuming we can solve the current problems with fracking (such as minor earthquakes and contamination of groundwater, although at least some of that seems to be company-specific incompetence/negligence), and we don't find any other side effects that turn out to be any more serious.

Having said that, there's a huge difference between oil and natural gas - it's a different energy source with its own set of problems, not the least of which is "it isn't oil": there will be a not-inexpensive transition process to have energy users switch from oil to natural gas. So sure, it could eventually lower demand for oil in the US, but given the unlikelihood of this having much of an impact on consumer oil consumption - i.e. gas stations, as I imagine it would be very expensive to switch that sort of infrastructure - and other 3rd-world counrties coming online and increasing their oil consumption.......I just can't see much of a lowering in the demand for oil, and thus its price.

And by all accounts, natural gas is only a transition fuel in itself - assuming production continues to increase, even the US only has enough reserves for perhaps the next 80 to 100 years of production as I understand. So in no way does it seem to be any more than a short-term transition fuel, from oil to whatever comes afterward - renewable/nuclear I assume?

subego · Oct 8, 2012, 09:24 AM

If we don't have fusion in 100 years I want a refund.

ShortcutToMoncton · Oct 8, 2012, 10:14 AM

From who?

subego · Oct 8, 2012, 10:27 AM

The New World Order.

ebuddy · Oct 9, 2012, 02:41 AM

Originally Posted by ShortcutToMoncton

You're talking about natural gas, aren't you? The US has massive natural gas resources that should be able to be accessed by techniques such as fracking - assuming we can solve the current problems with fracking (such as minor earthquakes and contamination of groundwater, although at least some of that seems to be company-specific incompetence/negligence), and we don't find any other side effects that turn out to be any more serious.
Having said that, there's a huge difference between oil and natural gas - it's a different energy source with its own set of problems, not the least of which is "it isn't oil": there will be a not-inexpensive transition process to have energy users switch from oil to natural gas. So sure, it could eventually lower demand for oil in the US, but given the unlikelihood of this having much of an impact on consumer oil consumption - i.e. gas stations, as I imagine it would be very expensive to switch that sort of infrastructure - and other 3rd-world counrties coming online and increasing their oil consumption.......I just can't see much of a lowering in the demand for oil, and thus its price.
And by all accounts, natural gas is only a transition fuel in itself - assuming production continues to increase, even the US only has enough reserves for perhaps the next 80 to 100 years of production as I understand. So in no way does it seem to be any more than a short-term transition fuel, from oil to whatever comes afterward - renewable/nuclear I assume?

I'm talking primarily about oil and how fracking and horizontal drilling is transforming Kansas through new oil extraction for example, but yes -- a wealth of natural gas can also be produced by these techniques.