Well, well, this morning while trying to procure more of my diesel fuel needs for the up coming, soon to be crop season, I did not like what I learned. While doing so with one of my fuel Jobbers, arguing my disgust with the current, and future fuel prices, he got my attention. He got me riled up more than I already was. He explained, and said the US is, and has been so called "energy independent" now for a considerable period of time, 22 months. Never before has Oil and Ngas production come anywhere close to whats happening now. Surpassing the old Crude production record by 100K barrels a week long ago. Twice as much now as to 11 years ago. Okay that said I asked him why are our prices still much higher than I would like. Same oh, same oh, Exports! Worst yet is he said not to get to excited about my costs coming down even a little if any at all.. Seems the more we, the US produces, the less the Big Producers in the Middle East, and other places do. They are doing so to Control the price of Oil, and NGas. Floor price of crude at $74, and up. This so called world market demand sucks, and has us held hostage! I still say Gouging! I can't survive without the export of what I produce, and don't like limits on any kind of business! However, our fuel prices were much better, and way more stable before 2014, and the lifting of the volume limits the crude oil, and refined products exported. The limits were established back in the days of the Arab oil embargoes. Yeah, I remember that well. Sucks as it seems we're stuck! He did tell me to be ready to purchase my fuel in the near future. That's the same advice my market adviser service told me yesterday. Can you say coincidence? It's all about the $$$ always.
"Energy Independence", eh?
- Thread starter old abe
- Start date
pclark
Well-known member
I think the gouging began at least a year or so ago on everything but bottom line all goods are much higher because of diesel fuel. OA, I know you follow the markets way closer than I do on fuel but your comments just verified what I have been thinking all along. The bad part is that it will continue and it will cause the American people lots of hardship. In my mind it is Capitalism but it is also crooked and they will pay someday for what they are doing. There is no reason for this, it can all be fixed but evil is in charge now.
dfattack
Well-known member
Some might not like this comment but it is the American Marxists fault. They want this problem and if Trump gets elected into office this will be fixed. We don’t need to be controlled by the Middle East and he won’t allow it. There are ways to get this straightened out. I don’t even have to be an expert to have this opinion but I believe it. If the left is successful in stealing another election due to republicans being stupid which they are then all bets are off and prices won’t go down unfortunately. Remember the left WANTS THIS
saber1
Active member
Its gauging that 2014 law that the oil companies lobbied to get thru allowed them to sell US produced oil on open world market thus having less oil in to refine in US and tying us into what ever price OPEC wants to charge Repeal that law and lets see what happens its a national security problem as well
dfattack
Well-known member
We CANNOT depend on foreign countries to survive, especially energy, computer chips, medicine among others. If we were ever to get into a world war we would be screwed initially. Possibly doomed. Hate to think about it but we can only blame our leaders and a percentage of our citizens for voting them in.
It's all apart of the risks of farming, and there are many. Any business for that matter. I certainly agree pclark, most all people don't understand how the price of diesel fuel basically effects everything the consumer, and businesses purchase. And even as they pump, and complain about the high priced gas for their car.
Back in my LTL trucking of many years, I can remember making more $$ from the fuel surcharges than what the actual freight/cargo paid. It was the only thing that saved us, and kept us rolling. However, another cost added to the consumer, eh.I bought my first diesel pickup in 2002 or 3 and fuel was under a $1 i believe but shortly after that granholm decided that we needed to tax it at a much higher level to fix the roads that the trucks were wrecking and the price skyrocketed over the next few years and never really stopped.
those were the good ole days when diesel fuel was cheaper than gas, the miliage was so much better for hauling and the cost to upgrade didnt seem so extreem.....
(time to listen to the theme song from archie bunker, read the lyrics, freaks were in a circus tent,, i dont know what went wrong, those were the days!!!)
those were the good ole days when diesel fuel was cheaper than gas, the miliage was so much better for hauling and the cost to upgrade didnt seem so extreem.....
(time to listen to the theme song from archie bunker, read the lyrics, freaks were in a circus tent,
, i dont know what went wrong, those were the days!!!)
indy_500
Well-known member
Last time I checked the scamdemic didn’t start until 2020, and we were darn near halfway thru the year when people started “staying home in fear”… weird the gas prices started dropping 2 years prior because of that… nice try though
Oil compaines are multinational corporations and will sell their proiduct on the open publically traded market. The middle east has the cheap easy oil and of course they will cut/increase production to help control prices (OPEC). Over production can cause price decreases but there is a limit on oil refining. The largest oil refinery in the US (port Arthur is owned by the Saudi Arabia (sold in 2017) and they are not our friends. The US currently is setting records for oil extraction at around 13 million barrels a day and will probably contuinue to rise, the US currently uses 20 million a day. The US has never been energy independent within near current times. The oil companies are a for profit corporations and are not going to give the US a "home town" discount, nor should they as I invest in those compaines and I want to make my money off of them. During the pandemic (2019/2020)the amount of oil wells in production plummeted to at least a 40 year low. It has streadily rebounded.
Yep, spot on you are saber1! Crude dropped into minus values, minus $40 a barrel. Many Oil producers were forced out of business, some permanently. Small US producers were hit the hardest. And the Ultra Easy, Cheap times of Fracking were in the past. Ocean oil tankers loaded with crude, and refined products were dead in the water all over the worlds oceans. Barges also on the US waterways. Nowhere to go, as not being able to unload due to no one buying, or wanting to as all storage facilities had been filed up to the max. Industry investors were chased away like a wild fire, and with absolutely no interest in getting back in with oil businesses ever again. They had been cleaned out, and ripped off hard! No Bull, Just Facts! Anyone thinking otherwise is only deceiving themselves. Fantasy Land, and Wishful Thinking, is just that, Wishful Fantasy, not even close to being Real. It's been proven oh so very many times, to be a absolute failed business model to follow.
All True Fact durphee. And the over production, oil glut started well before the pandemic. However, it did exasperate the glut to burdensome supplies. Just as my deflated corn prices are now. Over bearing supply, glut, and low demands. Market demand always sets prices. Always does.
saber1
Active member
Is a little rigged as we are producing record oil now but prices still climb
saber1
Active member
U.S. Producers Break Annual Oil Production Record
Based on oil production data from the Energy Information Administration at noon on December 15, the U.S. set a new oil production record.
www.forbes.com
Yeah, well, sadly so it is, Fact.
pclark
Well-known member
Durphee, I agree with your points. But, it’s just too bad at this point that US Companies can’t work with the people that support them in times of despair like we are in right now. We’ll never get anywhere with greed like this. I’m out….
Spot on pclark X10! It's just as Gouging out of Greed. Plus it seems the US oil leases are very $$$ cheap as compared to anywhere else.