Gas Prices - climbing to Record Highs

[Mopsquad]

Never thought the day would come that I'd be paying more in the USA (California) than my homeland.

[headejm]

Let's go Brandon! 

[dodj]

sigh... gas prices are much more complicated than simply who is president and what technology is present.  Gasoline is a GLOBAL commodity.  Global demand, or lack of, and refinery capability, or lack of, product availability, or lack of, and geo-politics impacts prices much more often and to a greater degree than who is the US president. 

Ya...the USA has no control over the global price of oil. A small piece of the pie. Bigger than a lot, but still small.
Yet...some people think that if the president they don't like is in power at the moment, they are to blame...
If the president they like is in power if the prices go down...then he is a hero...But he still had no control over the price.

[worthywads]

sigh... gas prices are much more complicated than simply who is president and what technology is present.  Gasoline is a GLOBAL commodity.  Global demand, or lack of, and refinery capability, or lack of, product availability, or lack of, and geo-politics impacts prices much more often and to a greater degree than who is the US president. 

Ya...the USA has no control over the global price of oil. A small piece of the pie. Bigger than a lot, but still small.
Yet...some people think that if the president they don't like is in power at the moment, they are to blame...
If the president they like is in power if the prices go down...then he is a hero...But he still had no control over the price.

Just the usual blame it on Biden for something he and Trump have no control of around here.  Thanks for bring reality into this conversation, very lacking on this thread.

[GoodysGotaCuda]

I don't even bother looking at the prices, just keep putting in whatever I need.

It goes up. It comes down.

https://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_nus_w.htm

[torredcuda]

I understand you can`t just blame the Potus and there are probably a number of reasons for it but we produced the most oil ever from 2016-2019, obviuosly Covid was a big part of the drop but I would think stopping the pipeline and restrictions on gov land also had an influence on current prices.

[HP2]

Yes, our production from 2016 - 2019 was massive and had the unintended consequence of driving prices so low that many drilling outfits had to close up because they couldn't afford to pump it out of the ground at a profit. At the same time OPEC decided to cut its output for the same reasons. As I stated earlier, this increase in prices, while uncomfortable for all of us, will drive those shuttered companies to reopen, resume extraction, and employ more people.  Which, unfortunately, will create more supply of money chasing more limited goods increasing inflationary pressure on everything else.

The Keystone pipeline already exists, is in place, and moving oil. Its moving some of the dirtiest oil available in the world, BTW, and it requires extensive refining that is more expensive to produce than sweet light crude. All that was stopped was the new XL segment of the pipeline that would shortcut the delivery route. This shortcut would actually cut out significant amounts of pipeline in Saskatchewan, Manitoba, and North Dakota, while moving it all through Montana. Shortening the pipeline would likely cost jobs in those areas where its use is reduced or removed while creating jobs in places where it would be moved to. The whole job creation thing is a wash.

Restrictions on exploration and drilling on Federal lands may appear to be relevant but is actually moot. We already have proven we have access to enough oil to be a net exporter. Don't forget that Democrats were in charge of the Federal government back in the early to mid teens and their restrictive policies on access were already in place when we were producing all that oil that made us an exporter in 2016.  It was a Republican president that enacted the law in 1975 that forbid export of oil.  It was a Democrat that overturned that law in 2016. The ability to sell oil on a global scale is what allowed us to produce more than we can use.  I'd also add that with the advances in technology with horizontal boring, there is no need to have oil derricks everywhere. You can concentrate and limit the extraction points  and still gather oil for miles around. That will allows all to enjoy the views and recreation access on a lot of that Federal land without having a noisy and bustling oil operation in the background.

IMO, the US and Canada can be totally energy independent. We both produce enough oil to be so. However, doing so would destabilize global economies. You have to go all the way back to the end of WW2 to understand our policies around oil strategy and our agreements with  many other countries and why it is important to global markets for us to not only participate in the purchase of oil but have market access for the sale of our goods and services as well.  This is all much, much bigger than what we all have to pay to drive our cars and has further reaching impacts on employment and quality of life than simply isolating North America from the rest of the globe.

[BIGSHCLUNK]

Brad, western/mid state. Imagine a rough line between Milwaukee to Jefferson City Mo

[tparker]

Just to throw out some more stuff. How much does the President impact oil? Not sure. Oil is a global market, but there is a lot that happens here in the states that impact gas prices. California gas is around $4.50 and up in the $5 in some markets. The rest of the US is averaging around $3.50 with many places much less. What is different? Not the global price, but Government interference in the form of regulations and taxes. We have refineries that are going down for various reasons. From what I understand part of it has to do with switching blends and other maintenance which includes some regulatory type stuff. And of course prices are subject to supply and demand. I am sure COVD has had some impact but I haven't paid much attention here

Prices are complex and due to a variety of factors. I agree the President has little direct control other than affecting the mentality of investors. State officials probably have more direct control over what you see at the pump.

The funny part is we are a hobby were cars are commonly $50K on up and many of us have large trucks to tow them around. LOL. I'm lucky enough to have bought mine for $1,000 and only dropped about $6k into it if that. So that leaves me with atleast $44K for fuel 

[HP_Cuda]

I think you guys are missing the bigger picture. Gas right now is just the canary in the coal mine. Wait until inflation really hits and then you will see tons of commodities go up like a rocket to the moon.

Both parties have spent this country into oblivion (28+ Trillion) and at some point we have to pay the piper.

[7212Mopar]

OK. Lets trade $ for Gold to preserve future gasoline purchasing power.

[HITTER23]

A president CAN effect prices when, like already stated enacts his agenda . Closing pipelines and banning new drilling had a direct result on the price. We went from being energy independent and EXPORTING to now at the mercy of OPEC and now asking them to please up your production. Recently, Saki even said that basically climate change had a bigger importance than energy prices.

[JS29]

  With Hitter23 

[worthywads]

A president CAN effect prices when, like already stated enacts his agenda . Closing pipelines and banning new drilling had a direct result on the price. We went from being energy independent and EXPORTING to now at the mercy of OPEC and now asking them to please up your production. Recently, Saki even said that basically climate change had a bigger importance than energy prices.

Except no pipelines were closed and there is no ban on new drilling, only a moritorium on new leasing.  There are already huge land areas already leased that new drilling will happen on.

We still export oil, and it continues to increase.

[torredcuda]

Inflation due to all the spending combined with labor and product shortages -
https://www.forbes.com/sites/mikepatton/2021/08/18/inflation-surge-to-continue-here-are-3-reasons-why/?sh=78244f4b690a