pro1driver
I don't wanna go fishing, even though i got stuff
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Gas prices rising but glut coming.(???)
- Thread starter pro1driver
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kantgetryte
TB Legend
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I think it all just an excuse to screw the public, we have oil so why import from others-same if russia has a bad crop of wheat,how/why would it effect us
Let's get one thing perfectly clear here, the oil and gas industry in the United States (as much as I loath to see it demonized because I make a living off of it) they still have to turn a profit and they don't want prices to tank either. They have no intention of flooding our markets with "too much" because of all the regulations and red tape they have to jump through makes producing it here in the States much more costly.
So as much as we think ending our oil dependency on foreign countries would solve our problems, these guys are still in it to make bank.
Just on the natural gas side of the coin, EnCana (who has been here since the bust in the 80's) steadily drilling and tapping wells in our Roan plateau for the last 20 years is pulling out.. there isn't enough money in it right now to make the kind of $$$ they want. So they will just cap the wells while the pipelines are full and sit on it.. sit on it until we need it and pop the top on those bad boys when they will make bank again. Instead of allowing us to create more pipelines and send it off to new venues and keep the prices reasonable the government continues to make it more costly to produce, the government is at the wheel of this madness, and to boot none of the oil companies really mind, they can sit on it until the demand goes high enough in the states to warrant opening them back up.
All of it is bureaucracy, all of it designed to make us pay more for less.
To answer your question, if Russia has a bad crop of wheat someone in the market makes up for that, if the demand goes up we pay higher prices because wheat will be sold to a more demanding market where exporters can get more money for it elsewhere. Same for oil/gas/any commodity.. economics 101.
So as much as we think ending our oil dependency on foreign countries would solve our problems, these guys are still in it to make bank.
Just on the natural gas side of the coin, EnCana (who has been here since the bust in the 80's) steadily drilling and tapping wells in our Roan plateau for the last 20 years is pulling out.. there isn't enough money in it right now to make the kind of $$$ they want. So they will just cap the wells while the pipelines are full and sit on it.. sit on it until we need it and pop the top on those bad boys when they will make bank again. Instead of allowing us to create more pipelines and send it off to new venues and keep the prices reasonable the government continues to make it more costly to produce, the government is at the wheel of this madness, and to boot none of the oil companies really mind, they can sit on it until the demand goes high enough in the states to warrant opening them back up.
All of it is bureaucracy, all of it designed to make us pay more for less.
To answer your question, if Russia has a bad crop of wheat someone in the market makes up for that, if the demand goes up we pay higher prices because wheat will be sold to a more demanding market where exporters can get more money for it elsewhere. Same for oil/gas/any commodity.. economics 101.
D
Deleted member 5115
Guest
The ability to transport merchandise of all forms to all parts of the world with ease has created a world market for everything EVERYTHING. That includes wheat, oil, propane and natural gas, corn, beef, etc, etc. Before they were able to move lobsters around the world live overnight they were cheap eating in Maine. Now the price is up but so are someone's profits. It's a double edged sword.