Join the Unexplained Mysteries community today! It's free and setting up an account only takes a moment.
- Sign In or Create Account -
Sign in to follow this  
Followers 1
DieChecker

U.S. Overtakes Saudi Arabia in Oil Production

21 posts in this topic

http://www.bloomberg.com/news/2014-07-04/u-s-seen-as-biggest-oil-producer-after-overtaking-saudi.html

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.

U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.

I wonder when fracking will begin to be unemployable, and overly expensive, resulting in the US not being able to extract shale oil? All the Doom-sayers said that oil shale would not be profitable, yet here we are....

http://fuelfix.com/blog/2014/03/26/study-shale-oil-still-profitable-with-price-drops/

While some have worried that shale production slows at a more rapid pace that conventional plays, York echoed many in the industry who say they’re confident technological advancements can help turn the tide.

“The industry has a track record of solving problems,” York said. “It’s part of the DNA of the industry.”

There’s not universal acknowledgement of that view. Some skeptics have said that shale plays cost too much to be financially sustainable in the long-term.

Share this post


Link to post
Share on other sites
 

I can't wait until 15-25 years down the line the health results start to rear their heads.

It will be an interesting and great time to be a lawyer.

Share this post


Link to post
Share on other sites

Posted (edited)

http://www.bloomberg...king-saudi.html

I wonder when fracking will begin to be unemployable, and overly expensive, resulting in the US not being able to extract shale oil? All the Doom-sayers said that oil shale would not be profitable, yet here we are....

http://fuelfix.com/b...th-price-drops/

Sure, It's profitable, at the price it's products are being sold at... but ya.. when will it become, as you say, overly expensive ? I think it's overly expensive now. The price of Oil/Fuel is one of the main factors ruining the U.S. economy. EVERYTHING moves by Oil. Land Sea and Air. A belabored point, but a good one.

* just want to add... If we are the biggest Oil Producers now.. why does fuel just keep rising... and how does that square with the excuse constantly fed to us that it's "INSTABILITIES!" in the middle east to blame for the price of Oil/Gasoline ?

Price gouging ... pure and simple.

Edited by lightly
2 people like this

Share this post


Link to post
Share on other sites

Because we are also the worlds largest importer of oil.

Share this post


Link to post
Share on other sites

I think we need to start switching to other forms of energy.

But until we do that we definitely need to get off our dependency of oil from other countries. So this is a good thing.

I dont think we should get rid of fracking all together but I do think we should regulate it in some ways so that to avoid the possible health drawbacks from it. (There has to be a way to do both)

And as for the gas prices It dosent help that the government treats gas tax the same as tobacoo, basically as a sin tax they feel they can tax at insane percents. ( and thats not counting the taxes and "fees" we see before it gets to the pump.

3 people like this

Share this post


Link to post
Share on other sites

Posted (edited)

http://www.bloomberg...king-saudi.html

I wonder when fracking will begin to be unemployable, and overly expensive, resulting in the US not being able to extract shale oil? All the Doom-sayers said that oil shale would not be profitable, yet here we are....

http://fuelfix.com/b...th-price-drops/

Doom-sayers...is that another name for Skeptics?

Edited by Hawkin
1 person likes this

Share this post


Link to post
Share on other sites

Doom-sayers...is that another name for Skeptics?

Yeah. It has more flavor, don't you think?

Share this post


Link to post
Share on other sites

Sure, It's profitable, at the price it's products are being sold at... but ya.. when will it become, as you say, overly expensive ? I think it's overly expensive now. The price of Oil/Fuel is one of the main factors ruining the U.S. economy. EVERYTHING moves by Oil. Land Sea and Air. A belabored point, but a good one.

A google check shows that gasoline in Portland Oregon is about $3.85 a gallon, or about $1.01 per liter. While in Europe gasoline costs about $8 (US$) a gallon. Gasoline in the US is not expensive.

1 person likes this

Share this post


Link to post
Share on other sites

Yeah. It has more flavor, don't you think?

When Henry Ford invented the Model T he caught a lot of flack from people about his horseless carriage.

They would yell at him to get a horse. Where would we be today if he let them discourage him?

1 person likes this

Share this post


Link to post
Share on other sites

So how come gas is 4 bucks a gallon here in my area these gas stations don't use American made gas lol

Its all bull there killing us at the pump

Share this post


Link to post
Share on other sites

Posted (edited)

A google check shows that gasoline in Portland Oregon is about $3.85 a gallon, or about $1.01 per liter. While in Europe gasoline costs about $8 (US$) a gallon. Gasoline in the US is not expensive.

Well... it could be even less Not Expensive.. if we didn't export so much?

http://www.washingtontimes.com/news/2014/may/11/us-energy-giants-use-crude-oil-loophole-to-post-re/?page=all

U.S. energy giants use crude oil loophole to post record petroleum exports

Even as big U.S. oil companies call for an end to a 1970s-era law banning exports of crude, they are exploiting a loophole that last year enabled them to export record amounts of gasoline and other petroleum products.

The loophole allows oil companies to export products that they refine from crude oil, though not the crude itself. With a major surplus of high-quality crude extracted by shale oil wells from Texas to North Dakota — and a declining appetite among American drivers — the little-known provision has resulted in an unprecedented boom in petroleum exports that is drawing down chronic U.S. trade deficits for the first time in decades.

Exports of gasoline, diesel, distillate, propane and other petroleum products soared to a record 4.3 million barrels a day in December, more than twice the 2.1 million barrels a day of petroleum products that the U.S. imported on average last year, according to the Energy Information Administration. The average 3.5 million barrels of petroleum exports a day in 2013 was double the 1.7 million five years ago.

“The U.S. is one of the largest petroleum exporters in the world,” even without lifting the ban on crude exports, said Energy Information Administration chief Adam Sieminski.

He said the U.S. is exporting gasoline primarily to Latin America and diesel to Europe.

Edited by lightly
1 person likes this

Share this post


Link to post
Share on other sites

We buy and sell oil globally. Even Keystone will be for export. Why should a company sell gas to the US for $4 a gallon when it can sell it elsewhere for $10 a gallon? Free market and all that.

2 people like this

Share this post


Link to post
Share on other sites

When Henry Ford invented the Model T he caught a lot of flack from people about his horseless carriage.

They would yell at him to get a horse. Where would we be today if he let them discourage him?

Are you saying that Oil Skeptics = Inventor Henry Ford? It would seem more like Prospecting Oil Companies = Ford Motor Company. As both were/are being told they were/are going to ruin the world.

Share this post


Link to post
Share on other sites

When Henry Ford invented the Model T he caught a lot of flack from people about his horseless carriage.

They would yell at him to get a horse. Where would we be today if he let them discourage him?

Riding horses?

Share this post


Link to post
Share on other sites

Any way you cut it it is still a rip off. What happened not to long ago when every politician said we need produce more here and not be dependent on foreign oil???

1 person likes this

Share this post


Link to post
Share on other sites

Are you saying that Oil Skeptics = Inventor Henry Ford? It would seem more like Prospecting Oil Companies = Ford Motor Company. As both were/are being told they were/are going to ruin the world.

I'm glad to have a truck. A lot has changed in the automobile since Henry Ford's model T except for one thing. The use of fossil fuels.

There are all kinds of alternatives like electric and compressed air for fuel. Even Harley Davidson has a prototype Electric Bike.

The stone age didn't end because we ran out of stones. Just found something better and need to use it.

3 people like this

Share this post


Link to post
Share on other sites

Posted (edited)

Any way you cut it it is still a rip off. What happened not to long ago when every politician said we need produce more here and not be dependent on foreign oil???

What happened!? The fact that companies can import sour crude (instead of sweet) and distill it here and make more money off of it (and charge Americans less for it) is the primary reason. It is all about money, but isn't it always?

Refinery A has no coker and is thus restricted to either buying light crude or buying heavy crude and selling a lot of low-value asphalt and roofing tar. Refinery A pays $100 a barrel for the generic light, sweet crude illustrated by the graphic. It will convert that barrel into 0.909 barrels of liquid fuel product, which let’s say has a value of $120/bbl (in reality, the volume would be slightly greater due to something called refinery processing gain; simply stated the volume “swells” as it is processed). Per the light assay above, 4.4 percent ends up as gas and 4.7 percent as resid.

Refinery A has therefore grossed $120*0.909 – $100, or $9.08 a barrel before we consider the value of the asphalt and the gases. The price of asphalt has risen sharply in recent years as a result of higher oil prices, and also because more refiners are turning their asphalt into higher value products, reducing the asphalt supply. Let’s say that our refiner receives $0.25/lb for its asphalt. A barrel of crude weighs around 300 lbs, so with a 4.7 percent asphalt yield, the barrel yielded 300*0.047 = 14.1 lbs of asphalt worth $3.53. Let’s value our gases at the value of propane (about $0.20/lb on the spot market), and we get a value of 300*.044*$0.20 = $2.64 for the propane. Our gross profit, or crack spread (before operating costs, taxes, etc. are considered) is then $9.08 + $3.53 + $2.64, or $15.25 per barrel for the light crude.

Now consider Refinery B. Instead of buying light, sweet at $100/bbl, it can obtain a heavy Canadian crude for $70/bbl (the current discount of heavy Canadian crudes to West Texas Intermediate is actually about $40/bbl.) Again, its barrel of oil weighs some 300 lbs, and as we can see from the assay above the resid yield may be in the range of 28 percent. So, of the 300 lbs, 84 lbs ends up as resid. But with a coker, the refinery can convert 80 percent of that resid into high-value products, and only 20 percent (16.8 lbs) ends up as low-value coke (a coal substitute).

Therefore, the overall yield from the heavy crude amounts to the sum of the cuts up to resid (71.6 percent), plus the resid that was turned into products (80 percent of 28 percent, or 22.4 percent), minus the gas cut (3.4 percent), for a total of 90.6 percent. The overall liquid yield is almost the same as for the light crude, and yet the refinery paid much less for its heavy.

So, the economics for Refinery B look like this: For the liquid fuels, it grossed $120*0.906 – $70 = $38.72 a barrel. This is four times Refinery A’s liquid fuel profit from the light crude, but Refinery B has slightly less propane yield than the previous example. The value of propane is $2.04. Finally, Refinery B ends up with 16.8 lbs of coke, which is worth only about $0.03/lb (about $0.50 total). The total gross profit then is $48.72 + $2.04 + $0.50 = $51.26.

It should be no surprise that refiners are rushing to install cokers in order to be able to process the discounted crudes.

http://www.investingdaily.com/16229/the-sweet-and-sour-economics-of-refining/

Edited by Einsteinium

Share this post


Link to post
Share on other sites

Posted (edited)

despite of all alt fuels, gasoline\diesel is still most practical, has most developed infrastructure, and in most cases still unmatched by all alt. fuels, and it also most profitable,

until electric, or even compressed air car will run 400-500mi, on single fill\charge, fill up in matter of minutes, and fuel can be stored as you can store and transport gasoline\diesel, you will not see gas cars go away.

before gasoline cars there were steam cars, they were simpler, and had more power, yet gasoline won. for the same reason they will still be around for decades, at least.

Edited by aztek

Share this post


Link to post
Share on other sites

despite of all alt fuels, gasoline\diesel is still most practical, has most developed infrastructure, and in most cases still unmatched by all alt. fuels, and it also most profitable,

until electric, or even compressed air car will run 400-500mi, on single fill\charge, fill up in matter of minutes, and fuel can be stored as you can store and transport gasoline\diesel, you will not see gas cars go away.

before gasoline cars there were steam cars, they were simpler, and had more power, yet gasoline won. for the same reason they will still be around for decades, at least.

I agree with you on that. But when you live in a world that is money driven, sticking with gas is the way to go to make profits.

If air or electric cars came into play, that would eliminated a lot of markets like those that make fuel additives. Oil companies

would downsize or be eliminated. Just think what happen when Henry Ford's Model T took off and people were buying them

for transport. It affected the Horse, Wagon and Saddle industry. Though they still exist today, they aren't as big.

Share this post


Link to post
Share on other sites

Posted (edited)

well, wagon industry started making cars , back than auto manufacturers only build frames with wheels and engines, it is coach manufacturers that were building body's, thus we had dozens upon dozens of brands, and all bodys were unique, no parts from 1 fit another, latter on competition and market did its thing, most successful stayed in business others closed. ford did not invent automobile, he just found the way to make many cheap, and all the same.

but yes saddle industries were affected. as my mother always says, "if one door closes others opens up, but you are not always looking hard enough to see them" i'm sure if electric or air cars got into play, manufacturers under smart management would adopt, others close, and others would open up new shops to deal with new demand. there would be many changes, but may be painful for some, but nothing stops progress, when new tech is good enough to be practical, cost effective and profitable, it will happen.

Edited by aztek
2 people like this

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 1

  • Recently Browsing   0 members

    No registered users viewing this page.