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U.S. awash in oil, but global demand drives prices

Chron.com -- At midnight on April 11, a 940-foot tanker maneuvered into the dock at the oil terminal in Valdez, Alaska, carrying an unusual cargo for a returning ship.

Sloshing in its tanks were more than 12 million gallons of Alaskan crude, at least a quarter of the cargo the ship had carried away from Valdez two weeks earlier.

The Alaskan Explorer had sailed to a Washington refinery but was forced to return to Alaska with 300,000 barrels because the onshore storage tanks were too full to accept it, confirmed Anil Mathur, CEO of the Alaska Tanker Co., which owns the ship.

"Not the normal course of business," said John Kotula, one of the few outsiders privy to the incident because of his position as manager of the state of Alaska's environmental office in Valdez.

The tanker's inability to offload


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Submitted Apr 29, 2012 By: angel4me
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: U.S. awash in oil, but global demand drives prices Back to Topics
REPLIES (newest first) Post a Reply
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honda0105
Champion Author Tallahassee

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Message Posted: May 3, 2012 4:53:38 AM

fuel2use: thank you for the reminder.
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fuel2use
Champion Author Seattle

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Message Posted: Apr 30, 2012 8:47:46 AM

Cherry Point was still rebuilding after a major fire.
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WalRus49
Champion Author Boston

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Message Posted: Apr 30, 2012 5:28:04 AM

More organized mayhem and pillage...............
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NedW
Champion Author Indianapolis

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Message Posted: Apr 30, 2012 4:59:43 AM

True.
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epf
Champion Author Grand Rapids

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Message Posted: Apr 30, 2012 4:26:15 AM

How true, how true!
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Jeff4U
Champion Author Atlanta

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Message Posted: Apr 30, 2012 3:25:53 AM

Politics and greed are the primary sources that drive prices.
Global pricing would be totally irrelevant if we had FULL access to OUR resources.
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Tomeboy
Champion Author Twin Cities

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Message Posted: Apr 30, 2012 12:56:18 AM

"If there is so much crude oil around, why is the price of gasoline so high? Why is the price of heating oil so high?"

The answer is the power of the world market. "We are tied to the global market, the global price for oil," "We cannot secede."

The profitable oil production industry benefits from the fact that it operates within a global market. Fuel conservation in the United States cannot overcome the rising hydrocarbon demand in emerging markets like China and India, Newell said. The price stays up even where more local market pressures might force it down.

"The dynamics in the United States are the opposite of what is occurring at a global level,"

Global market rules!!

Drill Baby Drill = Export Baby Export!!
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kgbellman
Champion Author Ann Arbor

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Message Posted: Apr 30, 2012 12:47:58 AM

We have no control over pricing in general
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RENEGADEGAS
Champion Author Missouri

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Message Posted: Apr 30, 2012 12:34:45 AM

ShadowACE ... You are absolutely right. If supply and demand were still the rule we wouldnt be paying these prices.
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jtfftj
Champion Author New Hampshire

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Message Posted: Apr 30, 2012 12:34:11 AM

NOT poor planing. Lack of a comprehensive energy Policy. And Sec. Chu can't even figure out how to get a bonus. Poor guy.
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zaq001
Champion Author Atlanta

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Message Posted: Apr 30, 2012 12:33:21 AM

ok.
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Ready Eddie
Champion Author Twin Cities

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Message Posted: Apr 30, 2012 12:32:25 AM

Greed and stupidity are the problem.
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Topless2012
Champion Author Twin Cities

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Message Posted: Apr 30, 2012 12:27:00 AM

Poor planning.
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5kvdave
All-Star Author Los Angeles

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Message Posted: Apr 30, 2012 12:22:08 AM

SUCH B.S.
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DirtDauber
Champion Author San Antonio

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Message Posted: Apr 30, 2012 12:21:50 AM

This has happened several times, every time we have a gasoline "crisis."
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ShadowACE
Champion Author Boston

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Message Posted: Apr 30, 2012 12:21:02 AM

Used to be supply and demand drove the market. That used to be a "law" years ago when I took EC101. Doesn't seem to apply much anymore.
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blueBMW480
Champion Author Nashville

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Message Posted: Apr 30, 2012 12:15:43 AM

Interesting
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bsg75
All-Star Author Chicago

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Message Posted: Apr 30, 2012 12:13:56 AM

Title "U.S. awash in oil" will of course imply to the dim Palinite "drill baby drillers" that we have sufficient domestic oil reserves to lower global market price very much. False, and not what the article is claiming if you break Palin protocol and actually read.
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tobasco
Champion Author Los Angeles

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Message Posted: Apr 30, 2012 12:13:41 AM

No news here.
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windows7isfast
Champion Author Winnipeg

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Message Posted: Apr 30, 2012 12:11:17 AM

ok
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Jmac2008
Champion Author Missouri

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Message Posted: Apr 30, 2012 12:10:43 AM

if they refine less oil they can charge more for gas and get richer
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Ron77095
Champion Author Houston

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Message Posted: Apr 30, 2012 12:03:35 AM

ok.
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nwsynthetics
Champion Author Oregon

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Message Posted: Apr 30, 2012 12:03:18 AM

Duh@!
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knifeman9
Champion Author North Carolina

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Message Posted: Apr 30, 2012 12:03:08 AM

Now how did that happen
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tampacrvdriver
Champion Author Tampa

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Message Posted: Apr 30, 2012 12:02:23 AM

Greed drives prices.
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heartbroken2010
Champion Author Ottawa

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Message Posted: Apr 30, 2012 12:02:16 AM

it is but to laugh at this.
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bobdec
Champion Author Miami

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Message Posted: Apr 29, 2012 11:55:23 PM

Would be different if we drilled here to capacity
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BobD2009
Champion Author Long Island

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Message Posted: Apr 29, 2012 11:55:08 PM

China and India can buy all we have. Nice not to be in debt.
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BWJM
Champion Author KW

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Message Posted: Apr 29, 2012 11:54:25 PM

ok
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miiike572
All-Star Author Phoenix

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Message Posted: Apr 29, 2012 11:52:38 PM

Hopefully we will be out from under of the thumb of an American hating socialist president on Jan 21 2013 and the free market will start to prevail.
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granitestater
Champion Author New Hampshire

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Message Posted: Apr 29, 2012 11:48:29 PM

Our demand is down. But world demand is up...
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TBONE3
Champion Author Pennsylvania

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Message Posted: Apr 29, 2012 11:44:34 PM

Thought provoking information. In short, we are being shafted!
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lunarrv15
Champion Author Cincinnati

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Message Posted: Apr 29, 2012 11:43:15 PM

okay....interesting
thanks for posting
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Point__man
Champion Author Raleigh

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Message Posted: Apr 29, 2012 11:41:27 PM

duh, people drive less due to gasoline being overpriced ;) if it is due to the global market, why hasn't that oil been delivered elsewhere. they seem to be sitting on the oil until drivers give in and pay their high prices. in some ways, they are on strike ;)
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KrsnaDragon
Champion Author Montreal

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Message Posted: Apr 29, 2012 11:39:33 PM

Speculation breeds despair.
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umitb
Champion Author Indianapolis

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Message Posted: Apr 29, 2012 11:39:18 PM

ok
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THZebra
Champion Author Indiana

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Message Posted: Apr 29, 2012 11:38:40 PM

Few report this but the real cause of high oil prices is oil is traded by the bbl in US Dollars. The US Dollar is deflated due to the overspending, borrowing and printing of worthless dollars. The more the Fed prints the less the dollar in your pocket is worth.

Thus, when the Dollar is worth less (or worthless) the more Dollars it takes to buy the same bll of oil. The higher the oil the higher the gasoline.

Simple high school econ. If the dollar was worth today as it was in the Clinton administration (1997) a US gal of gas would be 96 cents. That's not conjecture..that's fact.

[Edited by: THZebra at 4/30/2012 12:40:20 AM EST]
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abacus44
Champion Author Toms River

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Message Posted: Apr 29, 2012 11:37:36 PM

Between EPA and NIMBY, new refineries are almost impossible to build.
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miser709
Champion Author Grand Rapids

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Message Posted: Apr 29, 2012 11:37:20 PM

Did Obama do this too?
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papa56NC
All-Star Author North Carolina

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Message Posted: Apr 29, 2012 11:36:41 PM

The head of the goverment knows because they're getting a piece of the action.
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GryphonX
Champion Author Nevada

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Message Posted: Apr 29, 2012 11:36:35 PM

Still...you'd think finding it domestically would lower the price some?
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judgemobile
Champion Author Ohio

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Message Posted: Apr 29, 2012 11:35:19 PM

figures lie and liars figure (creed of Washington and most other politicians).
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TIGERPAW46
Champion Author Florida

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Message Posted: Apr 29, 2012 11:35:15 PM

As I'v said over & over. Tax the heck out of Oil & petroleum Distillates Exported out of the USA. Make it so high they can't sell overseas. Then they would have to market in the USA only. That would force prices down. Or the Gov. could simply pass a law they couldn't Export the oil & distillates. \
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GordoM
Champion Author Detroit

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Message Posted: Apr 29, 2012 11:35:12 PM

China or Japan would buy that crude, but our "brilliant" politicians decided that Alaskan crude can only be sold in US. I believe this law still stands so we have to take oil back to Valdez. Politicians can't keep their hands out our markets so we have this type of stupidity everywhere.
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min_fuel
Champion Author Philadelphia

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Message Posted: Apr 29, 2012 11:32:48 PM

We need to build refineries, and I have said that for 30 years.
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bbigred
Veteran Author Lansing

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Message Posted: Apr 29, 2012 11:28:41 PM

We don't buy because the prices are too high...big oil doesn't make money...sounds like a good plan to me
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pizzaman09
Champion Author Indiana

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Message Posted: Apr 29, 2012 11:25:19 PM

ok.
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Chris46
Champion Author Dayton

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Message Posted: Apr 29, 2012 11:25:15 PM

Well, that's something! Too much oil! Not enough refineries.
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Rooster922
Champion Author Wilmington

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Message Posted: Apr 29, 2012 11:21:21 PM

Really
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HA4CNN
Champion Author Toronto

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Message Posted: Apr 29, 2012 11:19:59 PM

Lets get back to normal and start using the supply and demand equation.
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