I am frustrated at the ongoing rise of gas in our town. Just over two weeks ago I filled up (non-ethanol) at 3.299.
This evening the same station has the same gas at 3.949. That's a 64 cent per gallon increase! That is OUTRAGEOUS!
Looking at GasBuddy, gas in Los Angeles is what we're paying here. What the heck is going on??

That's why I fired up the Prius this week. Found gas still at $3.55 this morning and a full tank was only $32 and will get me 460+ miles.

Leave it to a little newspaper in central Minnesota to ask the same question given all the positive circumstances. It's a good question!
U.S. has glut of oil, but gas prices continue to rise - what gives? | BrainerdDispatch.com | Brainerd, Minnesota (http://brainerddispatch.com/opinion/2013-05-08/us-has-glut-oil-gas-prices-continue-rise-what-gives)

Leave it to a little newspaper in central Minnesota to ask the same question given all the positive circumstances. It's a good question!
U.S. has glut of oil, but gas prices continue to rise - what gives? | BrainerdDispatch.com | Brainerd, Minnesota (http://brainerddispatch.com/opinion/2013-05-08/us-has-glut-oil-gas-prices-continue-rise-what-gives)

That article was so inaccurate that it could have only been written for the gullible and stupid.

So close to the ignore button. Lately, you've just resorted to nothing but name calling. Go have a beer or something, but it's getting old fast.

On the ignore button please feel free because that article is for the uneducated or worse.

:(

sid, obviously ou84A is one of the few educated people who post here (or so they think). LOL

Memorial Day?
Switch to summer blend?
Either way 50 cents or more in 2 weeks is rediculous.

On the ignore button please feel free because that article is for the uneducated or worse.

ok... if it's inaccurate, why not discuss *why* you think it's inaccurate? -M

Number 1 way to not be affected by gasoline prices - don't use it. For example, I don't care what the cost of caviar is.

The author of that story seems to think that from ground to gas pump only one all-powerful company touches the oil when in fact there are lots of handlers and owners along the way. My understanding is that refiners need $4 per gallon to run a profit, but at that price the economy goes in the tank. That is not a good combination.

Number 1 way to not be affected by gasoline prices - don't use it. For example, I don't care what the cost of caviar is.

The author of that story seems to think that from ground to gas pump only one all-powerful company touches the oil when in fact there are lots of handlers and owners along the way. My understanding is that refiners need $4 per gallon to run a profit, but at that price the economy goes in the tank. That is not a good combination.

Not biting on your caviar comparison. None of us needs caviar to function in our daily lives. Can't say the same for gas prices.

Even if you stay home - so many other things in your life are indeed effected by fuel prices.

That article was so inaccurate that it could have only been written for the gullible and stupid.

"Sir, you have no call to get snippy with me . . . I'm just doing my job here."
http://cdn2.hark.com/images/001/149/072/1149072/original.jpg
-Marge Gundersen, Chief of Police, Brainerd, Minnesota

Number 1 way to not be affected by gasoline prices - don't use it.

that sounds good in theory, but since fuel prices affect the whole supply chain and therefore affect the price of pretty much anything you buy, you're affected whether you personally use or not. -M

Yes, but every gallon of fuel I don't use is one more gallon available for the people that deliver stuff. Plus, the embedded price of fuel in the goods I buy pales (and I mean PALES) in comparison to the price of filling up a gas tank. Besides, most of the 'stuff' getting delivered is powered by diesel fuel anyhow and one CSX freight train can move 2,000 pounds of 'stuff' 450 miles on a single gallon. Step 2 is then rearranging our development patterns to reduce how far local stuff has to move.

I am actually surprised gas in OKC hasn't always cost close to the most in the country given the local populations near 100% dependency on it. If gas went to $10 per gallon today you would have to buy it.

Number 1 way to not be affected by gasoline prices - don't use it. For example, I don't care what the cost of caviar is.


I think you just uncovered how to avoid the high cost of clothes, food, education, fuel and housing..... "don't use it."

..... wait.

Not biting on your caviar comparison. None of us needs caviar to function in our daily lives. Can't say the same for gas prices.

That is what I am saying. Surely you see the danger inherent in that setup.

I think you just uncovered how to avoid the high cost of clothes, food, education, fuel and housing..... "don't use it."

..... wait.

Well, not to get to far off topic, but those items are dirt cheap and have lots of competition in the market place at all price points. 100 shirts might have 100 different prices - from 10 cents at a yard sale to $500 at Harrods. Gasoline - sold within a few pennies no matter how many outlets there are.

According to gasbuddy.com the OKC average is more than $0.25 above the national average now. Certainly unusual.

ou48A, are you going to share why you think the article is inaccurate? Why are gas prices rising so quickly?

ou48A, are you going to share why you think the article is inaccurate? Why are gas prices rising so quickly?

Would love the insight from someone who has been a major defender of anything oil/gas related on this forum.

It is pretty insane on how far off we are from the national average right now. Some stations in Norman are over $4/gal now. I feel like I'm back in Chicago.

I'm generally loathe on conspiracy theories, but I'm having a hard time accepting conventional answers at this point.

I filled up 15 days ago at $3.03. Same station is now $3.89. Normally, big bumps are tied to economic upheaval, warfare, cataclysm, something. But even then we haven't (or at least I don't recall) having seen a 25% jump in so short a time. I've heard about refinery maintenance, blend changes, summer price increases, etc., but nothing explains this size of change.

Part of me wonders if there's something going on in currency markets that is having some obscure but tangible affect on pump prices. It was barely three weeks ago we were hearing about ample supplies and lower consumption. Something doesn't add up.

*puts on tinfoil hat*

Lower consumption = low oil company profits?

*returns to "reality"*

Seriously though Dave, I agree. Something is odd about this.

That article was so inaccurate that it could have only been written for the gullible and stupid.

That wasn't an article. It was an editorial.

If you know the answer, ou48A, please share. I'm fully aware that that the price of gas at the pump is not as simple as one evil oil guy with a handlebar mustache pressing a button. But I also am not "gullible and stupid" enough to believe there's no reason for this huge price increase. So, as I said, if you know the answer, please share.

Just in time for my fill up... I am just under 1/4 tank. Wondering if I should fill up today after work or wait it out and see if I can avoid driving this weekend and fill up Monday or Tuesday.

The great wait debate!

C'mon - there have to be enough people on this forum to make all the connections between refiners and consumers, including the commodities guys who are placing bets on higher and lower prices.

At this rate, we will probably see $4/gal. this weekend. My local 7-11 (the cheapest in my area) is already $3.89. It was $3.27 last week. The big question is ... what is the breaking point for most people on fixed budgets? $4.00 would be hard to deal with. Already cut my Cox bill by eliminating TV. No more Netflix. Tightening the belt and eating out less. All these things I'm doing to save myself money is hurting the economy. I'm spending less to budget for gasoline.

... and then there's the trucking issue, when gas goes up the prices at the store goes up.

If we reach $5/gal by this summer ... I'll have to cut back even more.

ok... if it's inaccurate, why not discuss *why* you think it's inaccurate? -M



The author says that “It’s not because we have fewer barrels of oil. It’s not because demand is up.”

Crude is traded on a world market. World demand for crude is up.

The price depends on what world investors think the price of oil will be in the future. When world traders think oil will be high, they bid it up even higher. Traders around the world know demand for gasoline rises in the summer. They therefore start buying oil futures contracts in the spring in anticipation of that price rise.

There are costs differences in the different blends of gasoline at certain times of the year…The author write like he doesn’t believe so.

Refinery’s shut downs have a significant impact on price particularly when there are unscheduled shut downs.
The author says “that oil refineries have been running at or near capacity.” The current refinery utilization rate is at 88.0%. But it’s been as low as 81% this spring… That’s not near capacity.

The author says that “Oil company profits have not slumped during the nation’s Great Recession.”
While they have come back, it totally false to say they did not go down during parts of the “nation’s Great Recession”
Furthermore most of the major integrated oil companies profit margins that are close to the averages of many other major companies.


The author makes several inaccurate statements. The author lacks specific information and engages in way to many broad generality’s. Its lazy journalism and a low information article that only a low information reader would find acceptable.

There are many shorter term reasons that have helped cause the current price spike in the USA and around the world.
But the 2 biggest long term reasons why prices are rising in my view is the increases of world crude demand, and in the USA the drop in value of the dollar that was caused by the decision to massively increase federal government spending and borrow the money.

double post

$4.00 would be hard to deal with. Already cut my Cox bill by eliminating TV. No more Netflix. Tightening the belt and eating out less. All these things I'm doing to save myself money is hurting the economy. I'm spending less to budget for gasoline.

I have been saying for a while now - if we want to keep the economic lights on we better find a way to live without gasoline.

OU48a, Come join us in the No Spin Zone. It couldn't have a simple answer? You know, Occam's razor?
Speed Trap: Big Oil Profits from High Gasoline Prices | Center for American Progress (http://www.americanprogress.org/issues/green/news/2013/02/06/51967/big-oil-profits-from-high-gasoline-prices/)

OU48a, Come join us in the No Spin Zone. It couldn't have a simple answer? You know, Occam's razor?
Speed Trap: Big Oil Profits from High Gasoline Prices | Center for American Progress (http://www.americanprogress.org/issues/green/news/2013/02/06/51967/big-oil-profits-from-high-gasoline-prices/)

The article states how they are 'sitting on leases and not drilling'.....these are in the Gulf, very expensive to drill compared to the new technologies in the continental US. This is the reason Devon exited offshore drilling a couple of years back. They were ahead of the curve...

I don't blame them one bit for cutting the risk of off shore drilling for the less risky on shore drilling reward.

Not only that, that article bases its substance from politicians....you really want to go there ?

I have been saying for a while now - if we want to keep the economic lights on we better find a way to live without gasoline.

I thonk almost anyone can agree that society needs to find a cheaper and sustainable alternative to gasoline. I think it is more difficult for an individual to abstain from gas right now. It depends on their situation.

I thonk almost anyone can agree that society needs to find a cheaper and sustainable alternative to gasoline. I think it is more difficult for an individual to abstain from gas right now. It depends on their situation.

$4/gal gas and higher is definitely going to be a killer for a commuter/sprawl prone area like OKC - which Kerry has been saying for ages. Perhaps we need to push for it to get to $5-6/gal to force things to finally change. Of course at that time we might see an all out riot against the Oil/Gas industry coupled with another recession. There really should be a major push to have all new build cars utilized CNG or have a gas and CNG version that people can pick from.

. There really should be a major push to have all new build cars utilized CNG or have a gas and CNG version that people can pick from.

The best solution IMHO would be to manufacture duel fueled vehicles that use both NG and gasoline.
The NG would work well for shorter trips and the gasoline for longer trips.

Perhaps this is where a government mandate is needed. For most, there are currently very few options for duel fueled vehicles.
A mandate to produce a few each year might be worth a look?

You can make a car that runs of dried leaves and dry leaves will start costing $3.95 per gallon equivalent. If CNG ever becomes common place the price will skyrocket (newsflash - that is what the NG companies want). The only real solution is to eliminate the distance between point A and point B that makes the car a requirement in the first place. Instead of living 3 miles from the Super Wal-Mart grocery store - live 3 blocks from the corner grocery store, and then who cares how much transportation fuel cost - it isn't needed.

I was in Ft Worth Wed/Thur and stopped at the gas station at Walmart. It was 3.25 there and yes there was a line but I was able to fill up fairly quickly.

You can make a car that runs of dried leaves and dry leaves will start costing $3.95 per gallon equivalent. If CNG ever becomes common place the price will skyrocket (newsflash - that is what the NG companies want). The only real solution is to eliminate the distance between point A and point B that makes the car a requirement in the first place. Instead of living 3 miles from the Super Wal-Mart grocery store - live 3 blocks from the corner grocery store, and then who cares how much transportation fuel cost - it isn't needed.

Someone drove the groceries to the corner market, in a smaller, less efficient vehicle than at the super-center, where economy of scale is less and groceries cost more as a result...

The other option is to dramatically improve the well to wheel efficiency, (or tree to wheel, or fusion reactor to wheel.)

2013 Ford Tauras EPA Combined 23 MPG. Most of the electrics are around 100 + or -.

You can make a car that runs of dried leaves and dry leaves will start costing $3.95 per gallon equivalent. If CNG ever becomes common place the price will skyrocket (newsflash - that is what the NG companies want). The only real solution is to eliminate the distance between point A and point B that makes the car a requirement in the first place. Instead of living 3 miles from the Super Wal-Mart grocery store - live 3 blocks from the corner grocery store, and then who cares how much transportation fuel cost - it isn't needed.

Transportation fuel is most certainly needed, which is why I would still care about it if I didn't own a car. The food that you purchase from the corner market was delivered there by some method of transportation. The food was transported off the farm or ranch to the distributor or the seller via some method. What is that method? Almost certainly a truck that runs on fuel. So higher fuel costs lead to higher food and product costs. Even if you don't own a car and never have to put gas into a vehicle, you're still paying for the high costs in every product you buy. So, we won't find a way to live without transportation fuel as suggested earlier.

Now, if most people moved to the urban core, where it was highly walkable and you didn't need a car, the demand for that transportation fuel, ceteris paribus, would drop, leading to a decrease in the transportation costs.

2013 Nissan Altima 2.5 Litre 4 cyl. 38 mpg Highway - 31 mpg avg

2013 Nissan Altima 2.5 Litre 4 cyl. 38 mpg Highway - 31 mpg avg

Doesn't that seem kind of sad, though? We used to aspire to much higher mileage cars. It's like satisfaction at just going to the contest rather than winning it. Why are we still content with 38 hwy/31 avg?

Vehicles that get better gasoline mileage help, but they won’t slow down the world’s increased demand for gasoline / crude that is much larger than what is saved.

If we want lower prices more production is needed along with better government fiscal responsibility.
A stronger dollar helps lower oil prices.

Someone drove the groceries to the corner market, in a smaller, less efficient vehicle than at the super-center, where economy of scale is less and groceries cost more as a result...

Time to crawl out from under that rock ... the local food movement started over 20 years ago. Places like the Earth in Norman grow their own produce.

I read not too long ago that oil based fuels was the USA's number one export for the first time in some number of years YET prices didn't drop as predicted by the drill baby drill crowd.

I never pay attention to gas prices and had no idea they had risen so much in the last few weeks and heck I just filled up yesterday. Hopefully they'll drop back down soon.

I read not too long ago that oil based fuels was the USA's number one export for the first time in some number of years YET prices didn't drop as predicted by the drill baby drill crowd.

I never pay attention to gas prices and had no idea they had risen so much in the last few weeks and heck I just filled up yesterday. Hopefully they'll drop back down soon.

If you will consider how much higher prices would be without it, drill baby drill works and would work much better with lower prices if not for a government that slows massive energy development in several areas.

If you will consider how much higher prices would be without it, drill baby drill works and would work much better with lower prices if not for a government that slows massive energy development in several areas.

Absolutely. Prices are assuredly lower relative to what they would be without the extra drilling. If we could get better, faster government approval of energy development, we could become the world's largest exporter of oil and gas within five years.

Absolutely. Prices are assuredly lower relative to what they would be without the extra drilling. If we could get better, faster government approval of energy development, we could become the world's largest exporter of oil and gas within five years.

If
If
If
Chugh
Chugh
Chugh
Its almost as if those in power do not care.

Time to crawl out from under that rock ... the local food movement started over 20 years ago. Places like the Earth in Norman grow their own produce.

What would be your guess of the percent of sales produce is in the average purchase at the wal-mart super center JTF compared the local market to? I'm going to make a wild guess at less than 5% of sales.

I'm with you though, I posted some things about the local food movement awhile back.

http://www.okctalk.com/general-civic-issues/33363-urban-farming.html#post623531

However, after 20 years, we have one place and it isn't local to most people in OKC. We're also in an extended drought. It's probably a good thing the majority of Oklahomans haven't relied on local produce. I'm not so sure we have the water supply. Are you?

BTW...what's going to be the energy cost to manufacture brand spanking new materials, truck it all in and build new housing for close to a million people in downtown when you move everyone from the burbs there? (Not to mention all the other resources that would be gobbled up.) Too much! There are better solutions.

If you will consider how much higher prices would be without it, drill baby drill works and would work much better with lower prices if not for a government that slows massive energy development in several areas.

Lets see... The USA has increased domestic oil production by over 25% in the last four or so years yet in the same time period gas prices have risen by well over 50%. I'm not saying you're wrong, I just have a hard time believing it.

Sounds like several refineries are shutting down all at once. So its only going to get worse until they come back up. Seems to back up the notion that it isn't a supply (raw material) problem but a refining problem. At least we finally saw the permit for the first new refinery issued this year in 30 years. Now we just need to get more built.

Of course doesn't solve the long term problem. I'm sure I am not the only one that scoffs at the commercials of "amazing low MPG of 31" and the like. We've been at that level for years. We should be well on the way to 100 mpg by now or higher. Unfortunately it'll take a gov't mandate to happen and that'll never happen.


Lets see... The USA has increased domestic oil production by over 25% in the last four or so years yet in the same time period gas prices have risen by well over 50%. I'm not saying you're wrong, I just have a hard time believing it.

We could open ANWR and everything else up to drilling and I bet everything I have prices won't go down. Oil & Gas companies aren't interested in the prices going back down. It is like the cost of water. It is something that we essentially need to function and those guys know it. They will get whatever price they feel they need to get and no one will stop them.

Sounds like several refineries are shutting down all at once. So its only going to get worse until they come back up. Seems to back up the notion that it isn't a supply (raw material) problem but a refining problem. At least we finally saw the permit for the first new refinery issued this year in 30 years. Now we just need to get more built.

Of course doesn't solve the long term problem. I'm sure I am not the only one that scoffs at the commercials of "amazing low MPG of 31" and the like. We've been at that level for years. We should be well on the way to 100 mpg by now or higher. Unfortunately it'll take a gov't mandate to happen and that'll never happen.



We could open ANWR and everything else up to drilling and I bet everything I have prices won't go down. Oil & Gas companies aren't interested in the prices going back down. It is like the cost of water. It is something that we essentially need to function and those guys know it. They will get whatever price they feel they need to get and no one will stop them.

No kidding. The 1986 Chevy Sprint got 48 MPG. You'd think with all the advances in technology since then we'd have a plethora of gas powered cars that got at LEAST 48 MPG. Id-a-make-a-no sense.

I never heard of a Chevy Sprint. I wonder if they were good cars.


25 All-time Best Gas Cars by MPG - Energy Maters - Green Transportation (http://www.motherearthnews.com/green-transportation/miles-per-gallon-cars-zb0z11zblon.aspx#axzz2TagpoU4h)

Sounds like several refineries are shutting down all at once. So its only going to get worse until they come back up. Seems to back up the notion that it isn't a supply (raw material) problem but a refining problem. At least we finally saw the permit for the first new refinery issued this year in 30 years. Now we just need to get more built.

Of course doesn't solve the long term problem. I'm sure I am not the only one that scoffs at the commercials of "amazing low MPG of 31" and the like. We've been at that level for years. We should be well on the way to 100 mpg by now or higher. Unfortunately it'll take a gov't mandate to happen and that'll never happen.



We could open ANWR and everything else up to drilling and I bet everything I have prices won't go down. Oil & Gas companies aren't interested in the prices going back down. It is like the cost of water. It is something that we essentially need to function and those guys know it. They will get whatever price they feel they need to get and no one will stop them.

What you need to know is that prices wouldn’t go by as much if more drilling and energy infrastructure was allowed to be built and that our economy would be better off for it.
You / we need to know the real reason why prices go up and down over the long term.

What you need to know is that prices wouldn’t go by as much if more drilling and energy infrastructure was allowed to be built and that our economy would be better off for it.
You / we need to know the real reason why prices go up and down over the long term.

So you are essentially saying we can open it all up, let them drilling to their hearts content, and even though we hear that it'll help lower energy costs in reality we are just going to keep the forced priced increase lower than what they originally would be?

If that's the case, what's the point? That's when we need to start pushing more (and improved) hybrid vehicles that would only use a couple gallons every few hundred miles. Of course I have a feeling if we do that, they are just going to turn around and charge $15/gal to make up for the drop in demand. IOW, we are in a no win situation.

You'd think with all the advances in technology since then we'd have a plethora of gas powered cars that got at LEAST 48 MPG.

it's not that the technology isn't there, it's just that current emissions and crash impact standards make that level of efficiency more difficult to obtain. -M

it's not that the technology isn't there, it's just that current emissions and crash impact standards make that level of efficiency more difficult to obtain.

As the young folks say, THIS.

That little Chevy Sprint weighed less than 2000 lb. Subcompacts today carry around 2500 lb or more, mostly to convince people that they can drive into bridge abutments and survive. Every mid-sized "family" sedan weighs at least 3100 lb; minivans are invariably over 4000 lb. Neither the Congress nor the EPA can override the laws of physics -- but they'll never stop trying.

"They" are predicting prices to increase by as much as another 20 cents. Just since my post yesterday that same 7-11 I referred has gone up another 9 cents, topping the $4 mark. That is for non-ethanol fuel. I understand the summer fuel blend excuse it happens every year, as do increases around holidays. I am just miffed at the amount of increase. Seriously, going from 3.29 April 27 to 4.03 May 17 seems excessive to me. Gas in Dallas is 3.29, Little Rock is as low as 3.19, Albuquerque 3.33, Wichita 3.65. Why so high in OK?

"They" are predicting prices to increase by as much as another 20 cents. Just since my post yesterday that same 7-11 I referred has gone up another 9 cents, topping the $4 mark. That is for non-ethanol fuel. I understand the summer fuel blend excuse it happens every year, as do increases around holidays. I am just miffed at the amount of increase. Seriously, going from 3.29 April 27 to 4.03 May 17 seems excessive to me. Gas in Dallas is 3.29, Little Rock is as low as 3.19, Albuquerque 3.33, Wichita 3.65. Why so high in OK?

News tonight is saying the refineries impacted are the main suppliers for us...so we get it the worst.

So you are essentially saying we can open it all up, let them drilling to their hearts content, and even though we hear that it'll help lower energy costs in reality we are just going to keep the forced priced increase lower than what they originally would be?

If that's the case, what's the point? .The point is to avoid another deep recession or something worse.


We now live in a world economy and should expect to pay reasonably close to the going world rates.
That’s why IMHO we should be pushing far harder for duel fueled vehicles (NG - gasoline).

Eventually NG will be exported in far greater amounts than we would ever likely use for transportation. This would cause NG to go up….The good news is that we have very large deposits of NG in the US off shore and in Canada. Drill baby drill will work very well for NG but we have to be able to build pipelines and associated facilities

The point is to avoid another deep recession or something worse.


We now live in a world economy and should expect to pay reasonably close to the going world rates.
That’s why IMHO we should be pushing far harder for duel fueled vehicles (NG - gasoline).

Eventually NG will be exported in far greater amounts than we would ever likely use for transportation. This would cause NG to go up….The good news is that we have very large deposits of NG in the US off shore and in Canada. Drill baby drill will work very well for NG but we have to be able to build pipelines and associated facilities

Or we evolve completely away from it as much as we can. In the Fusion power thread I attempted to bring this up, but you seemed to dodge it.

There is technology available that can be advanced towards more electric car usage. In pavement recharging technology existing that can keep cars powered as they travel on interstates for example. As we move electrical generation away from oil/gas towards Fusion, additional fission plants (potentially), and wind fields that would reduce the demand we have for oil/gas for transportation.

So sure, we can sit there and go to dual fueled vehicles which is a good minor step. Much like hybrids were a good first step there. We can still do better, which probably will require the Fed coming down and doing forceful mandates - not these decades long plans. The sooner we break any reliance on oil/gas the better off we'll be.

Or we evolve completely away from it as much as we can. In the Fusion power thread I attempted to bring this up, but you seemed to dodge it.

There is technology available that can be advanced towards more electric car usage. In pavement recharging technology existing that can keep cars powered as they travel on interstates for example. As we move electrical generation away from oil/gas towards Fusion, additional fission plants (potentially), and wind fields that would reduce the demand we have for oil/gas for transportation.

So sure, we can sit there and go to dual fueled vehicles which is a good minor step. Much like hybrids were a good first step there. We can still do better, which probably will require the Fed coming down and doing forceful mandates - not these decades long plans. The sooner we break any reliance on oil/gas the better off we'll be.

We should evolve away from crude oil usage it as much as we can….. but as long as there is oil production due to the cracking process there will always be gasoline. I’m pretty sure the physics of the cracking process can’t be changed very much or by enough to not still have large amounts of gasoline. We have still got to do something with it.

Baring a major break though with electric cars they are far more expensive and are not really very practical for most people. There are also limits to what the electric power grid will support.

Right now the most cost effect fuel we have that can displace gasoline is NG. Right now nothing else even comes close. That’s why dual fueled vehicles are the most cost effective and practical alternative. Even if only 25% of commuters used NG for their commutes it would displace significant amounts of oil.

Strong national leadership on this issue would help. Nobody else in the world has as much natural gas potential as the USA. If we displace a decent percentage of our crude oil usage with NG we can become a net exporter of crude oil and its products in a world market that will need our expensive crude/ products.

This would significantly strengthen our national economy and our ability to influence world events.

This is not to say we shouldn’t be working on cheaper energy alternates…. But basic laws of economics mean that high energy prices cause serious economic turmoil on the consuming end. It’s better to be a producer of energy.

What is to keep Chesapeake and other major NG producers from just rocketing up the price of NG to keep it comparable to Oil to where there is no advantage? If we have so much supply than the price shouldn't really jump all that drastically. Would it be something that the Fed would need to step in and regulate pricing until the market is well adjusted to the switch in our primary fuel for cars?

What is to keep Chesapeake and other major NG producers from just rocketing up the price of NG to keep it comparable to Oil to where there is no advantage? If we have so much supply than the price shouldn't really jump all that drastically. Would it be something that the Fed would need to step in and regulate pricing until the market is well adjusted to the switch in our primary fuel for cars?


The trading markets basically set the price for Chesapeake and other major NG producers.
We have far more NG than oil + crude oil is much easier and much cheaper to ship across the oceans.
Even if NG is roughly the same price as crude per BTU it’s a national advantage to use more NG gas as a transportation fuel. As I said we could export the excess crude. This is an area where we have a huge potential economic advantage over China and most other low cost producers.
We have tried regulating NG nationally and it was a dismal failure.