US Oil Boom and Fuel Prices


October 24, 2012 by esarsea

ABC News reported this morning that, “America’s oil boom is surging so fast the US could soon overtake Saudi Arabia as the world’s largest producer.” The article goes on to say that US production is on pace to rise 7 percent this year – the fourth straight year of crude increases, and the biggest single-year gain since 1951 (read full article here).

Maybe someone can explain to me why we’ve had 4 straight years of increases in crude oil production in the US, and at the same time (according to the US Energy Information Administration) gas prices have been as follows:

Unleaded Regular Gasoline – Average US Retail Prices

2009: $2.350 per gallon
2010: $2.788 per gallon
2011: $3.527 per gallon
August 2012: $3.707 per gallon

Am I missing something?

2 thoughts on “US Oil Boom and Fuel Prices

  1. Bill says:

    You should live in Utah. We have refineries here in the capital city that serve local outlets and the reasoning behind pricing is as sensible and logical as a clown conference at the circus.

    We are higher than the national average most days, BUT! There’s that winter blend of gas that’s supposed to be less expesive that isn’t, there’s the industy’s broad excuse of ‘supply-and-demand that supposedly explains why prices jump up on holidays (gouge) and then, it gets crazy on Wall Street: A single barrel of crude oil falls off a transport ship in the middle of the Atlantic Ocean and the market reacts by selling off or buying up A- stock in steel barrel manufacturers B-investments in foreign oil producers C-stock in oil tankers and shipping companies D- stock ion the 401K funds of the unionized Crude Oil Barrel Handlers Local #45.

  2. torqdog says:

    Yeah…… there seems to be no rhyme or reason to oil prices. I hauled my little 19′ travel trailer down to Barstow Columbus day weekend for the breast cancer offroad race and round trip of 750 miles cost me 318.00 bucks. It was the same weekend when gas prices in Caifornia shot up to over 5 bucks a gallon due to some sort of refinery problem. Well, my understanding is that the refineries that supposedly caused the spike in prices are still offline yet gas prices have been dropping precipitously the past week or so. So what gives…… there really wasn’t any kind of shortage other than the shortage of cash folks were experiencing every time they filled up their tank.

    It’s all bullshit. The oil companies know that we’re gonna pay regardless and the cliche “take advantage” comes to mind. All I can say is they had better be careful as regulation just might be in their future. They already regulate Natural Gas, Electricity and Water so the mold has been cast.

    BTW; the highest price we saw on our trip was in Lee Vining, a little town on the shores of Mono Lake just east of Yosemite. 5.60 a gallon. Yikes! Needless to say there was nobody filling up in Lee Vining.

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October 2012

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