As gas prices drop oil production grows

Risay117 · August 03, 2017, 10:11:34 PM

"Oil subdued on high OPEC supplies, rising U.S. production" - http://www.reuters.com/article/us-global-oil-idUSKBN1AK04P

Although one would assume with falling prices that production would stall, in fact the opposite, US production has grown as demand has still grown, but OPEC production has also grown with increase in supply from African countries.

This raises questions on how long can OPEC maintain the cuts in production, and if they may attempt to crash the market again to hamper alot of investment in the oil industry in the US.

On another point, is US production tied to existing Wells or to newly explored Wells. Is exploration and installment of new infrastructure growing or are US suppliers trying to survive in their existing infrastructure.

Jono · August 04, 2017, 02:42:30 AM

I remember a few years ago when gas was like $1.50 for awhile. Those were good times indeed.

Mattie G Indahouse · August 04, 2017, 06:45:23 AM

Quote from: Risay117 on August 03, 2017, 10:11:34 PM

As gas prices drop

Just not in PA. We have an insanely high gas tax in order to fund our State Police so they can protect us by giving speeding tickets to people who are going 10MPH over the limit in their precious speed traps.

Ian · August 04, 2017, 10:59:42 AM

>Gas prices drop

Not here in fucking Florida that's for sure. It was $1.99 two weeks ago and now it's rising at $2.29. While that's not terrible the fact of the matter is it's only been going up since then.

DAS B00T x2 · August 04, 2017, 01:45:38 PM

Quote from: Mattie G Indahouse on August 04, 2017, 06:45:23 AM

Quote from: Risay117 on August 03, 2017, 10:11:34 PM
As gas prices drop
Just not in PA. We have an insanely high gas tax in order to fund our State Police so they can protect us by giving speeding tickets to people who are going 10MPH over the limit in their precious speed traps.

Makes ya wonder where all that extortion money the pigs make goes, cause it sure as hell ain't to fixing our roads.

Risay117 · August 04, 2017, 08:01:51 PM

Quote from: Mattie G Indahouse on August 04, 2017, 06:45:23 AM

Quote from: Risay117 on August 03, 2017, 10:11:34 PM
As gas prices drop
Just not in PA. We have an insanely high gas tax in order to fund our State Police so they can protect us by giving speeding tickets to people who are going 10MPH over the limit in their precious speed traps.

You forget, oil prices are very different from retail gas prices. They are two different markets. If anything the refineries are making a killing of the low oil as demand to get your unproceesed oil to the market is pushing suppliers to pay more to get their products to the market.

Another thing you have to remember is that gas prices at retail are very inelastic on the demand side.

Boomdeyadah · August 05, 2017, 02:59:43 AM

>Price of oil goes down
>Price of gas goes up

I hate living in Leaf land

Mattie G Indahouse · August 05, 2017, 07:55:36 AM

Quote from: DAS B00T x2 on August 04, 2017, 01:45:38 PM

Quote from: Mattie G Indahouse on August 04, 2017, 06:45:23 AM
Quote from: Risay117 on August 03, 2017, 10:11:34 PM
As gas prices drop
Just not in PA. We have an insanely high gas tax in order to fund our State Police so they can protect us by giving speeding tickets to people who are going 10MPH over the limit in their precious speed traps.
Makes ya wonder where all that extortion money the pigs make goes, cause it sure as hell ain't to fixing our roads.

What's great is that the tax was supposed to go towards PennDot for fixing up the roads, but the majority of it is going towards our SP. This state can't doing anything right when it comes to money. Legalizing recreational weed would bring in hundreds of millions each year, allowing PA residents to buy fireworks without that special permit would generate a good amount of revenue and it would be the same with allowing semiautomatics for big game hunting.