alexol

It was clear that there are some misconceptions concerning many aspects of the price of gas, the whys and wherefores of production and price drivers.

While this video isn't perfect, it is quite informative and reasonably straightforward without seemingly pushing an agenda. It is obviously highly simplified and there are certainly bits missing - it's hard to compress what is arguably the world's most important industry into an easily digestible 10-minute video.

Hope you find in interesting. You won't feel better about high gas prices, but you may have a better understanding;)

https://www.youtube.com/watch?v=ww0yRj81eX0

rcarol

What I don't fully understand is why is it that gas prices in California are consistently about $2.00 more a gallon than in the rest of the USA.

alexol

I think that is explained in the video. It's basically an exaggerated version of why gas is $.75 more in one state than another, just a question of degree.

Old Coot

Taxes

Canisdirus

State taxes ...is why.

She sidesteps the issue affecting the US today.

The current administration has thrown cold water on fossil fuels in every way possible.

Just by announcing that publicly affects investments straight away... within minutes.

Btw...given the mess we are all in...will the WH come to its senses?

Of course not...they want to tap into our national security reserve (again) rather than open up the fossil fuel industry.

Would rather weaken our national security...it bears repeating.

sippyjug104 Loc: Missouri

Many often forget that there are over 6,000 products that are derived from crude oil and manufacturers depend on a reliable supply of crude to be "cracked" for the products that they make and sell.

Parking lots and roads rely on asphalt, roofs rely on shingles, plastics are used in just about everything. There are very few, if any, items in our daily lives worldwide that have not relied on a form of petroleum in one way or another.

alexol

We've had this conversation before too.

It isn't simply a question of opening up the faucets (in any country), there are all sorts of ramifications.

Two facts worth bearing in mind:

- for offshore oil (which comes from high production, long producing wells, unlike the sale stuff) from the first geological discussion of potential reserves to gas-in-your-tank, is usually around 7 years & beaucoup money.

- Right now, we have somewhere around 5,000 wells in the US which have been drilled and capped, waiting for the appropriate time to produce, whatever that means to the well owner.


Regarding the 6,000 products - certainly true. But you can take it a step further, and ask anyone to name any process or product - newer than something out of the Middle Ages, a thousand years ago or so - which is not dependent upon oil, directly or indirectly.

Canisdirus

Sorry...the USA has more than enough energy...we were EXPORTING it a few years ago.

There is more supply than we need.

It's political...100%...and dangerous...100%

srt101fan

By looking at it strictly from a national supply-demand perspective you are ignoring that U.S. production and distribution of oil and gas is an inextricable part of global trade, no?

Canisdirus

Of course it is...and I am not.

We are talking about US prices...which are currently a DIRECT result from the current administrations POLITICS.

It has zero to do with shortages...we are awash in fossil fuel energy.

We are ESPECIALLY a part of the global oil issue...when we have to IMPORT.

We don't have to... politics.

srt101fan

Would you please refrain from introducing politics into this discussion? Can't you just discuss specific factors that have caused gas pump price increases?

sodapop Loc: Bel Air, MD

Explain how you could do that?......... without including the fact that politics has a large influence on the price

neillaubenthal

Mostly higher taxes and since they don’t like oil refineries or pipelines more transportation costs.

neillaubenthal

His statement is partially correct…current admin policy has definitely contributed to the problem…cancelling pipelines and drilling permits, etc. However…the energy industry is way more complicated than that…and there are dozens of other factors involved. Refineries adjust the type of output depending on whether they want more gasoline, diesel, or heating oil…and making those adjustments is more complicated than flipping a switch. Then both crude and refined products have to be shipped…mostly via pipeline…and there is limited pipeline capacity. Oil price, state taxes, and state regulations also play into the mix.

So no…it isn’t all Biden’s fault…but he certainly contributed to it.

Renewable is all well and good…but still has major issues. It’s more expensive today than fossil and you can’t simply legislate costs our scientific progress. Storage huge problem…renewables can’t throttle up and down as easily as fossil. What happens when the wind isn’t or when it’s dark. But the biggest issue is NIMBY and folks who don’t want them near them…and to be truthful the best places to put solar and wind are in the emptier middle sections of the country…and the transmission systems to get it from there to CA and NY simply don’t exist and would take decades and multiple trillions of dollars to build. And EVs are not the solution for long distance…and high speed rail is again horribly expensive and yada yada. We could use nuclear and that helps carbon wise…but greenies don’t like it either.

lbrande

There are at least 3 refineries in El Segundo, CA.