Obama: Anyone who says we can lower gas prices by more drilling (6 Viewers)

[SaintsInDome2006]

Oil futures plunged Wednesday on a government report showing a surge in supplies of U.S. oil and a record level of gasoline production.

The U.S. is awash in oil, with record levels of production meeting a rising tide of imports. The U.S. Department of Energy said oil stocks rose by 7.26 million barrels, while analysts had expected a decline of 1.8 million barrels.

http://www.cnbc.com/id/102294437#.

Gas is plummeting in my neighborhood, I've seen it under $2.00 recently, even in the 1.80-1.90 range, the increased production seems to have had an impact. No?

 

[SaintsInDome2006]

In 2008 Barack Obama told us he liked gasoline prices at $4 per gallon. Obama thought that along with destroying the coal industry, high oil prices would push us to use less energy and to drive electric cars and travel more by bicycle. In December 2008, when Obama was putting together his White House team, Dr. Steven Chu was selected to become Secretary of Energy. Prior to the General Election, Chu was even more enthusiastic about raising gasoline prices than was Obama, "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe," Mr. Chu, who directs the Lawrence Berkeley National Laboratory in California, said in an interview with The Wall Street Journal in September. http://m.lubbockonline.com/interact/blog-post/may/2011-03-05/4-gasoline-was-obama%E2%80%99s-plan

In 2008 Barack Obama told us he liked gasoline prices at $4 per gallon. Obama thought that along with destroying the coal industry, high oil prices would push us to use less energy and to drive electric cars and travel more by bicycle.

In December 2008, when Obama was putting together his White House team, Dr. Steven Chu was selected to become Secretary of Energy. Prior to the General Election, Chu was even more enthusiastic about raising gasoline prices than was Obama,

"Somehow we have to figure out how to boost the price of gasoline to the levels in Europe," Mr. Chu, who directs the Lawrence Berkeley National Laboratory in California, said in an interview with The Wall Street Journal in September.

http://m.lubbockonline.com/interact/blog-post/may/2011-03-05/4-gasoline-was-obama%E2%80%99s-plan#gsc.tab=0

 

[StrikeS2k]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

It's increased oil production.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

 

[SaintsInDome2006]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

 

[SaintsInDome2006]

The last time a sittong President threatened to drill, the price dropped immediately. The ME nations aould be reluctant to cut production and the prospect scares the speculators

This happened.

The funny thing is that Obama felt it necessary to couch his announcement with the statement that he was further buttressing alternative energies, which was plainly false.

And lo and behold we are reopening relations with Cuba and their Gulf oil fields and next up is the XL pipeline when the GOP comes to power. Really curious if Obama will veto that.

 

[cstu]

The last time a sittong President threatened to drill, the price dropped immediately. The ME nations aould be reluctant to cut production and the prospect scares the speculators

This happened.

The funny thing is that Obama felt it necessary to couch his announcement with the statement that he was further buttressing alternative energies, which was plainly false.

And lo and behold we are reopening relations with Cuba and their Gulf oil fields and next up is the XL pipeline when the GOP comes to power. Really curious if Obama will veto that.

Obama has done a combination of things to scare oil producing countries:

- Increasing CAFE standards

- Giving legitimate support for alternative energy

- Promoting drilling - in environmentally safer areas.

In other words, Obama 'gets it' while Republicans are stuck in a simplistic 'Drill, baby, drill' mentality.

 

[tommyGunZ]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

Obama was right. It's a perfect storm of conditions right now contributing to lower gas prices inot simply drilling. And this is only temporary.

 

[Maelstrom]

From a different thread:

Cut to 2012, Obama actually expanded drilling permits and stood aside from the fracking debate... while at the same time pretending he was really for a "kitchen sink" approach while pushing all energy sources.

Cut to today and oil and gas production is through the roof.

Here are the number of permits he's approved:

2010 - 4090

2011 - 4244

2012 - 4256

2013 - 3770

While permits where up for 2011/2012, they were down pretty significantly for 2013. The gas prices have way more to do with what the Saudi's are doing rather than anything we're doing here at home.

 

[msommer]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

Don't forget the demand drop in China.

And the very steep price curve for oil when defecit goes to surplus and vice versa

 

[msommer]

From a different thread:

Cut to 2012, Obama actually expanded drilling permits and stood aside from the fracking debate... while at the same time pretending he was really for a "kitchen sink" approach while pushing all energy sources.

Cut to today and oil and gas production is through the roof.

Here are the number of permits he's approved:

2010 - 4090

2011 - 4244

2012 - 4256

2013 - 3770

While permits where up for 2011/2012, they were down pretty significantly for 2013. The gas prices have way more to do with what the Saudi's are doing rather than anything we're doing here at home.

Saudi Arabia is keeping the oil output steady.

The US is increasing output.

China is reducing demand

Q: Who is ultimately to blame

A: The supply demand balance is

in 2015 it is estimated that supply will outstrip demand by 1m bopd if no one reduces output.

Remember to save to $ you don't spend at the pump to make the next price shock easier to handle, once supply and demand meet again.

 

[SaintsInDome2006]

The growth in U.S. production, largely from shale drillers, is at the heart of OPEC's campaign to maintain its market share.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year,

Obama has pretty much stood aside from the larger fracking areas, no? This is a really weird discussion. You have people who are typically maybe on the independent or moderate to conservative side who are trying to give credit to Obama for domestic oil exploration policies and you have people on the liberal to progressive side trying to deny that credit while at the same celebrating domestic gas prices falling, it's really weird considering Obama ran on getting comfortable with high gas prices, on considering gas taxes, on promoting alternative fuels, and on decreasing domestic consumption .

 

[greenroom]

Let's be honest, if Obama said he could get the prices down to where they are today everyone would of laughed!

I do not know of anyone that thought we would see the prices we are seeing today.

 

[SaintsInDome2006]

The last time a sittong President threatened to drill, the price dropped immediately. The ME nations aould be reluctant to cut production and the prospect scares the speculators

This happened.

The funny thing is that Obama felt it necessary to couch his announcement with the statement that he was further buttressing alternative energies, which was plainly false.

And lo and behold we are reopening relations with Cuba and their Gulf oil fields and next up is the XL pipeline when the GOP comes to power. Really curious if Obama will veto that.

Obama has done a combination of things to scare oil producing countries:

- Increasing CAFE standards

- Giving legitimate support for alternative energy

- Promoting drilling - in environmentally safer areas.

In other words, Obama 'gets it' while Republicans are stuck in a simplistic 'Drill, baby, drill' mentality.

This may be. I think you should definitely add in fracking policies though. I guess what I'm getting at is that presidents do or can influence gas prices?

I think you can also add in increased exploration, even if this has not led to drilling in those areas I'm guessing it drives down futures prices:

http://www.huffingtonpost.com/2014/07/18/east-coast-oil-exploration-_n_5599674.html

The Obama administration is reopening the Eastern Seaboard to offshore oil and gas exploration, approving seismic surveys using sonic cannons that can pinpoint energy deposits deep beneath the ocean floor.

Friday's announcement is the first real step toward what could be a transformation in coastal states, creating thousands of jobs to support a new energy infrastructure. But it dismayed environmentalists and people who owe their livelihoods to fisheries and tourism.

The cannons create noise pollution in waters shared by whales, dolphins and turtles, sending sound waves many times louder than a jet engine reverberating through the deep every ten seconds for weeks at a time. Arguing that endangered species could be harmed was the environmental groups' best hope for extending a decades-old ban against drilling off the U.S. Atlantic coast.

Oil lobbyists say drilling for the estimated 4.72 billion barrels of recoverable oil and 37.51 trillion cubic feet of natural gas that lies beneath federal waters from Florida to Maine could generate $195 billion in investment and spending between 2017 and 2035, contributing $23.5 billion per year to the economy.

These estimates describe the total amount of energy "technically recoverable" from the nation's outer continental shelf, but the Atlantic seabed from New Jersey through New England remains off limits for now. While some states have passed drilling bans, Virginia and the Carolinas asked for the surveys, bureau officials explained Friday.

"I honestly feel we can go offshore and harvest the energy that's out there," said South Carolina state Sen Paul Campbell. "I think we're kind of foolish not to."

In any case, the area to be mapped is farther offshore in federal waters, beyond the reach of state law.

http://www.huffingtonpost.com/2014/07/18/east-coast-oil-exploration-_n_5599674.html

We can say that drill baby drill is a false concept, perhaps, but what is clear is that production is up, and I'm guessing consumption is up. - I'm not sure what CAFE and alternative energy have to do with what's happening here.

Again, this is not what Obama ran on. This is a tried and true campaign maxim: the economy and the people love cheap gas. I think his administration is a bit conflicted in trying to take credit for this - which I am not sure they have. And I can understand why not if not, because they once stood for something else.

Btw, look at your link about "safer" areas including public parks. We are happy about this? The environmental issue is another thing, not really part of this or the other thread, but I don't feel fully confident that Obama has done what is necessary to protect our coastlines after what happened with BP.

 

[SaintsInDome2006]

Let's be honest, if Obama said he could get the prices down to where they are today everyone would of laughed!

I do not know of anyone that thought we would see the prices we are seeing today.

Well that's just it, he encouraged people to not expect it. The campaign was on decreased consumption, environmental protection, maybe gas taxes, maybe prices at or near Euro levels, and increased reliance and promotion of alternative fuels.

I'd be really surprised if Obama came out and included fracking, increased imports and increased exploration (as opposed to permitting, I agree, that's stayed down) as part of his menu of developments that have helped bring the prices down. But clearly production is up.

I think it's also interesting if we (royal we, the public) can all agree that presidents can influence gas prices.

 

[Apple Jack]

$204 RT DC to Denver first week of February. Effing Obama.

 

[shadrap]

Obama is not a supporter of oil whether you agree or disagree with oil. He has tried to eliminate the "deduction" for the cost of drilling. This would have shut down the U.S. oil & gas drilling almost immediately. Drilling is up in oil producing states in spite of Barack. He wants the fed's to regulate all drilling permits. States won't go along. He wants the Fed's to have final approval on all fracking. States won't go along. He does have control over drilling on federal lands & as a result, drilling(on federal lands) is down. The bakken oil play in ND & MT have contributed a lot to lower gas prices.

IMO gas prices are low in spite of Obama & not a result of anything he did for the industry.

 

[SaintsInDome2006]

$204 RT DC to Denver first week of February. Effing Obama.

Well that's just it, isn't it?

Obama says fracking can be a ‘bridge’ to a clean-energy future. It’s not that simple.In his State of the Union address, President Obama heaped praise on the boom in natural-gas production across the United States. And he made a comment about fracking that triggered some grumbling from green groups.

"If extracted safely," Obama said, natural gas is "the 'bridge fuel' that can power our economy with less of the carbon pollution that causes climate change."

Other administration officials have made this "bridge fuel" comment before. If fracking is done right, the idea goes, then all that natural gas can provide somewhat lower-carbon electricity as an interim step as we develop more carbon-free sources of energy. That's how we'll tackle global warming.

...

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/29/obama-says-fracking-offers-a-bridge-to-a-clean-energy-future-its-not-that-simple/

Look don't get me wrong about this, LA has felt the impact of oil and gas drilling on the environment, and now fracking is here in a big way or about to be.

But it sure looks to me like fracking is a big piece of what's going on here and the Obama administration has been facilitating it.

Do you think that's a good thing or a bad thing?

 

[SaintsInDome2006]

Obama is not a supporter of oil whether you agree or disagree with oil. He has tried to eliminate the "deduction" for the cost of drilling. This would have shut down the U.S. oil & gas drilling almost immediately. Drilling is up in oil producing states in spite of Barack. He wants the fed's to regulate all drilling permits. States won't go along. He wants the Fed's to have final approval on all fracking. States won't go along. He does have control over drilling on federal lands & as a result, drilling(on federal lands) is down. The bakken oil play in ND & MT have contributed a lot to lower gas prices.

IMO gas prices are low in spite of Obama & not a result of anything he did for the industry.

It seems to me the Obama administration has largely stood aside from the fracking regulation issue. He has provided some sops to environmental groups but they are not happy at all with Obama's policies in that regard.

I realize the point about the drilling permits being down (and cstu posted a really good chart on that btw proving that point) but it was Obama himself who made the point about exploration and efficiency of production being more important than drilling. He's expanded exploration on the East Coast, in public lands and parks and reinstituted drilling offshore in the Gulf.

I'm perfectly happy to give the man credit, but he doesn't appear eager to take it himself. I think it's because he stood for policies opposite to what's been getting production to sky high levels.

 

[SaintsInDome2006]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

Obama was right. It's a perfect storm of conditions right now contributing to lower gas prices inot simply drilling. And this is only temporary.

That's an interesting take. You don't give Obama any credit for what's going on?

That's what I used to think, that presidents didn't really affect oil prices (I mean with domestic policies or regulation).

 

[Insomniac]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

Can anyone explain why it took until the last 6 months for the increase in US/World production to cause the drop in oil prices.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=A
US Oil Production 1000 barrels/day
2009 5350
2010 5482
2011 5645
2012 6497
2013 7442
looking at the monthly data for this year
SEP14 8864

Worldwide Oil Production barrels/day
2009 84951.2
2010 87580.6
2011 87870.7
2012 89758.7
2013 90136.0
Sept14 93,251.2

$/barrel WTI
http://www.indexmundi.com/commodities/?commodity=crude-oil-west-texas-intermediate&months=60
DEC 2009 $74.49
DEC 2010 $89.22
DEC 2011 $98.61
DEC 2012 $88.19
DEC 2013 $97.90
DEC 2014 $55.84


The 1.4 million barrels per day in US production this year only increased the World supply of oil by about 1.5%. That doesn't seem like that would be enough to cause the ~45% price drop since last year. Even the worldwide increase doesn't seem to be enough to cause this kind of decline.

 

[SaintsInDome2006]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

Yes.

Spurred by the use of hydraulic fracturing or fracking in shale rock deposits, U.S. oil production has jumped from 5.0 million barrels per day in 2008 to 7.4 million last year and is expected to average 8.5 million this year and 9.3 million next year, according to the EIA, the analytical arm of the Department of Energy.

http://americasmarkets.usatoday.com/2014/07/08/u-s-oil-production-in-2015-to-be-highest-since-1972/

A boom in U.S. shale-gas production has flooded the global oil market and sent gas prices tanking.

http://time.com/3643558/saudi-arabia-gas-prices-opec/

Thanks. And this is what the president said the American people were "stupid" for for believing? I'm surprised this hasn't come to the fore recently, he should be reminded of his foolish statement.

Can anyone explain why it took until the last 6 months for the increase in US/World production to cause the drop in oil prices.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=A
US Oil Production 1000 barrels/day
2009 5350
2010 5482
2011 5645
2012 6497
2013 7442
looking at the monthly data for this year
SEP14 8864

Worldwide Oil Production barrels/day
2009 84951.2
2010 87580.6
2011 87870.7
2012 89758.7
2013 90136.0
Sept14 93,251.2

$/barrel WTI
http://www.indexmundi.com/commodities/?commodity=crude-oil-west-texas-intermediate&months=60
DEC 2009 $74.49
DEC 2010 $89.22
DEC 2011 $98.61
DEC 2012 $88.19
DEC 2013 $97.90
DEC 2014 $55.84

The 1.4 million barrels per day in US production this year only increased the World supply of oil by about 1.5%. That doesn't seem like that would be enough to cause the ~45% price drop since last year. Even the worldwide increase doesn't seem to be enough to cause this kind of decline.

Well isn't the US price decrease going to be related to the effect on US supply, not world supply? What was the % effect on US supply?

 

[msommer]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

 

[SaintsInDome2006]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Thanks. So are gas prices down globally as well?

How do you fall on whether we should expect our presidents to affect the price of gas?

 

[shadrap]

What Obama can control is BLM(bureau of land management=feds) leases issued to oil companies.

Since he took office number of leases & number of lease acres issued has declined significantly.

http://www.blm.gov/style/medialib/blm/wo/MINERALS__REALTY__AND_RESOURCE_PROTECTION_/energy/oil___gas_statistics/data_sets.Par.80157.File.dat/numberofacresleasedeachyear.pdf

 

[msommer]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Thanks. So are gas prices down globally as well?

How do you fall on whether we should expect our presidents to affect the price of gas?

They are down 20-25% in Europe. They were subsidized in Brazil so they are stable there. Overall as I understand it the gas and all other oil derivative prices are down on a global level.

I think that a world leader can only affect oil price if the supply/demand situation is very close to balanced and a policy change sends it over the tipping point.

Be it Obama, Xi, Putin or King Abdullah. Most of these guys pull in different directions though so that makes it harder to predict.

If Xi Jinping tomorrow enacted some set of laws that would increase China's demand by 1m bopd, the prices would rise, overnight.

Or if OPEC (through the Saudis) or Russia dropped production by 1.5m bopd, the price would rise overnight.

What is much more likely is that Xi will do one thing, Putin another, Obama a third and so on, and the net effect would either be big enough to tip the scales (and the prices would rise) or it would be not enough and the prices stay down.

The market is a complicated place and no single player rules it all anymore.

 

[SaintsInDome2006]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Thanks. So are gas prices down globally as well?

How do you fall on whether we should expect our presidents to affect the price of gas?

They are down 20-25% in Europe. They were subsidized in Brazil so they are stable there. Overall as I understand it the gas and all other oil derivative prices are down on a global level.

I think that a world leader can only affect oil price if the supply/demand situation is very close to balanced and a policy change sends it over the tipping point.

Be it Obama, Xi, Putin or King Abdullah. Most of these guys pull in different directions though so that makes it harder to predict.

If Xi Jinping tomorrow enacted some set of laws that would increase China's demand by 1m bopd, the prices would rise, overnight.

Or if OPEC (through the Saudis) or Russia dropped production by 1.5m bopd, the price would rise overnight.

What is much more likely is that Xi will do one thing, Putin another, Obama a third and so on, and the net effect would either be big enough to tip the scales (and the prices would rise) or it would be not enough and the prices stay down.

The market is a complicated place and no single player rules it all anymore.

So in your book Obama gets no credit for what's going on? Ok.

This just seems to be an ongoing puzzle that happens with every president.

One other thing that gets mentioned as a "theory" is that the US was pushing the Saudis to produce to put pressure on Putin and the Russians, but I guess that has no validity either.

 

[Insomniac]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Would this mean that a relatively small drop in production by the Saudis would cause a spike in prices? They may even be able to make more money by decreasing their production by a million barrels a day. OTOH they may be more motivated by political factors such as the harm lower prices do to Iran.

 

[msommer]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Thanks. So are gas prices down globally as well?

How do you fall on whether we should expect our presidents to affect the price of gas?

They are down 20-25% in Europe. They were subsidized in Brazil so they are stable there. Overall as I understand it the gas and all other oil derivative prices are down on a global level.

I think that a world leader can only affect oil price if the supply/demand situation is very close to balanced and a policy change sends it over the tipping point.

Be it Obama, Xi, Putin or King Abdullah. Most of these guys pull in different directions though so that makes it harder to predict.

If Xi Jinping tomorrow enacted some set of laws that would increase China's demand by 1m bopd, the prices would rise, overnight.

Or if OPEC (through the Saudis) or Russia dropped production by 1.5m bopd, the price would rise overnight.

What is much more likely is that Xi will do one thing, Putin another, Obama a third and so on, and the net effect would either be big enough to tip the scales (and the prices would rise) or it would be not enough and the prices stay down.

The market is a complicated place and no single player rules it all anymore.

So in your book Obama gets no credit for what's going on? Ok.

This just seems to be an ongoing puzzle that happens with every president.

One other thing that gets mentioned as a "theory" is that the US was pushing the Saudis to produce to put pressure on Putin and the Russians, but I guess that has no validity either.

Not really no, no more than King Abdullah, Putin or Xi Jinping gets credit or blame. In Jim11's stupid thread from six months ago I'm pretending I am.

I'm not really a conspiracy theory guy. There is no doubt that geopolitically the effects of the current price drop are mostly beneficial to the US and it's allies and detrimental to it's enemies..

But I can't see anyone having that kind of power and not having used it a year ago, or two years ago when the economy was much worse off in the US than it is now

 

[msommer]

Saints; oil prices are down globally, not just in the US

Insomniac: In the previous years oil price was an expectation about future demand driven by China. With lower than expected GDP growth and lower than expected demand there as a result (this is simplified) that expectation has changed. The new expectation is that supply outstrips demand. And the price curve is really steep for oil when you go just a little the other way across the balance point.

Would this mean that a relatively small drop in production by the Saudis would cause a spike in prices? They may even be able to make more money by decreasing their production by a million barrels a day. OTOH they may be more motivated by political factors such as the harm lower prices do to Iran.

The Saudis produce about 9m bopd, so they would have to cut 11% of their production. Problem is that US production is set to increase by 0.4 or 0,5 bopd in 2015, so now we are talking 15%. And Brazil is putting a lot of effort into boosting their production as well by a similar amount, should the Saudis take care of that too? That's then over 20%. Russia is finding oil in the Arctic, what about that?

What I see the Saudi's doing is a classic market share play. It makes sense since they really haven't seen a budget deficit in a long time so they have credit up the wazoo (and interest rates are lower than normal pretty much globally). So they will not cede market share, and let those with higher oil price needs blink first.

OPEC is down to proviiding about a third of the worlds requirement - if they can clear out a few players by flexing their muscles (and stimulating demand longer term) that's a good thin in the long term.

Not sure the asset side will work so well for them as the shale, tar sands and arctic oil/gas finds aren't going anywhere even if they become uneconomical for a period. But stimulating demand might have a much longer term effect and could make the present value of future cash flows higher than maintaining a high price with negatively trending demand.

 

[shadrap]

While our Presidents can influence oil production in the U.S.; i.e.; tax incentives, issuing more drgl permits on federal lands, this President has done nothing in any regard to increasing oil or gas production under his watch.

High oil prices spur drilling. Break even point for spending 8 million drilling a bakken well is about 65$ a barrel. Sooooooooo drilling will be curtailed markedly because of the current price of oil.

Hostilities in the middle east can cause the price to double in a week, depending on how extreme said hostilities are.

 

[shadrap]

And true to form for socialists:

http://www.wnd.com/2008/05/65111/

 

[Josie Maran]

Love your work, Shamus.

 

[Maelstrom]

And true to form for socialists:

http://www.wnd.com/2008/05/65111/

From 2008...how is this relevant?

 

[cstu]

And true to form for socialists:

http://www.wnd.com/2008/05/65111/

From 2008...how is this relevant?

And Maxine Waters.

 

[shader]

Obama took to the stump today to lash out at his critics and claimed that they are celebrating the rising gas prices. He pointed out that oil production since he became President has nearly quadrupled under his watch, and it lowered under Bush. He went on to say that we can't lower prices by increased drilling, and anyone who says otherwise is not telling the truth. "There is no silver bullet," he says. Is he right?

President Obama, in a speech on energy development that comes as gas prices climb, tried to stress to Americans that he feels their pain at the pump -- but pushed back on the notion that there's a "silver bullet" for the problem.

As the Republican presidential candidates and others clamor for more domestic oil and gas drilling, Obama defended his record to date on domestic energy exploration.

And he empathized with Americans smarting over the impact of rising gas prices. "High gas prices are like a tax straight out of your paycheck," Obama said.

But he said anyone who claims the U.S. can drill its way out of high gas prices "doesn't know what they're talking about or just isn't telling you the truth." He said the rise is a reminder of the need to develop new energy sources.

"There is no silver bullet. There never has been," he said.

Obama said Thursday in Florida that the calls to step up domestic drilling come every year. "The American people aren't stupid, they know that's not a plan," Obama said. "That's a bumper sticker. It's not a strategy to solve our energy challenges."

Obama, as he has before, instead called for an all-of-the-above approach to energy independence -- gas, oil, wind, nuclear, solar, biofuels and more.

Does anyone know the answer to this?

Is there more drilling and fracking today leading to greater domestic oil production and so that has led to lower gas prices?

Or has there been an increase in alternative (wind/solar) energy types and that has led to lower gas prices?

What are the numbers?

I don't know why gas prices are low, there is a lot of debate.

But it's not because of wind and solar energy.