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Thanks for the gasoline USA!!!!!

Whitewing

Well-known member
Despite producing more oil than we have in decades, prices at the pump aren't budging. The culprit? We've been increasing the amount of our gasoline that is being exported. While this is great for the profit margins of refiners, it's not so wonderful for our wallets.

We've actually been a net exporter of gasoline since 2009. Overall, our exports of finished gasoline products have grown at a compound annual growth rate of 15.7% since 2000. However, as we've used less gas domestically over the last few years, our export growth has shifted into high gear and since 2010 that annual growth rate has jumped to 35.4%.

To put some numbers behind this trend, this past January we exported 16.981 million barrels of finished gasoline products. When you compare this to the 6.841 million barrels in January 2010, and the 3.936 million barrels in January 2000, you can see just how phenomenal our export growth has become.

One of the driving forces behind this export push is that gasoline demand has been dropping here in the U.S. We're simply not driving as much as we used to, which is creating what appears to be a structural shift in our demand. However, this has quickly been displaced by increased demand for gasoline outside our borders. The market is simply selling gas to the highest bidder, which you will see is an unlikely buyer.

Traditionally, a bulk of our finished gasoline products had been shipped to Mexico. Since January 2000, 66.8% of all finished gasoline exports went just south of the border. However, Mexico has been pulling back lately and now represents only 32% of exports as of January 2013.

Picking up the slack is none other than Venezuela. The OPEC country had been a virtual non-entity in our export market until December 2011. This January it accounted for 20.6% of all exported finished gasoline product exports, which is up from 15.9% in December 2012. It's also well above the 2% total it had been importing going back all the way to 2000.

Here's why this could make your blood begin to boil. The Venezuelan government subsidizes its citizens' gasoline so that that average price of gas is just $0.18 cents a gallon. I don't know about you, but I no longer give much thought when gasoline prices fluctuate that much in one day. Worse yet, our government, on average, taxes us at twice that rate per gallon.


Those exports are one of the reasons why, as you can see by the map below, you're still paying a pretty penny every time you fill up at the gas station.

gasoline_prices_map-large_large.gif
 

Steve

Well-known member
yep back in the ol days when we were dependent on the middle east prices were low..

while exports balance the trade deficit a bit.. they do not lower prices..

supply and demand in the past lowered gas prices.. but now lack of demand causes low profit refineries to shut.. (like the half dozen locally have)

and a lack of refineries artificially decrease supply...

darn economics.. just never works out like the liberals want..
 

okfarmer

Well-known member
How much do we pay at the pump so that our government can steal from us and give to Venezuelan government to subsidize the gas for its citizens so that they will vote for its leaders?
 

Whitewing

Well-known member
okfarmer said:
How much do we pay at the pump so that our government can steal from us and give to Venezuelan government to subsidize the gas for its citizens so that they will vote for its leaders?

95 Oct had been running about $0.06/gallon but with the recent devaluation, I imagine it's technically about $0.09 now. And that's using the official exchange rate. Use the black market exchange rate and it's even lower, maybe the lowest in the world. Not sure where they get the $0.18/gallon as I've never seen prices anywhere near that.

Diesel is so cheap it's practically given away.
 

Steve

Well-known member
I am sure they get a decent bulk deal.. :mad:

Gasoline price in Venezuela down to USD 0.01 upon devaluation

No adjustment in the price of Venezuela's gasoline has been reported in 17 years. After several devaluations in such a long time, Venezuela's gasoline has turned out to be the cheapest in the world.

Upon the latest devaluation of the Venezuelan currency from VEB 4.30 to VEB 6.30 per US dollar, the value of a liter of gasoline of 95 octanes slipped from USD 0.022 to USD 0.015, based on the official foreign exchange rate.

Economists Luis Oliveros and Domingo Sifontes have explained that upon the 46.5% devaluation, subsidies in gasoline may account for USD 1.7 billion a year. This is just the result of production costs, which are 10 times the price of gasoline

since your now paying about .. .06 cents a gallon how do you afford that kind of increase just since February?

cause it is tough when we see twice that increase in costs in a day or two.. :mad:

could you imagine how much our economy would take off if we had cheaper fuel?
 

Steve

Well-known member
in thinking about it.. you guys getting cheap gas might not be so bad after all

The loss opportunity cost to the country? Estimating, conservatively, 500,000 bbl per day internal consumption, if sold at the international market price of ~$120 per barrel of refined product, less the $3.50 actual sales prices, is about $58 million per day (BsF 267 million). Annually comes to $21 BILLION.

had dead dictator been given an extra 21 billion... what would he have spent it on?

homes for the poor?

or
weapons...

terrorist activities

a nuke?

either way.. we get paid for the gas at market prices.. and now have an export,.. which will help our economy a bit,.. it isn't much.. but it is a good start...
 

hypocritexposer

Well-known member
We've been increasing the amount of our gasoline that is being exported. While this is great for the profit margins of refiners, it's not so wonderful for our wallets.

I wonder what the profit margin is on the gasoline exported to WW? :lol:
 

gmacbeef

Well-known member
I heard the other day that the U.S. gasoline inventory was at a 22 year HIGH ! so much for that supply & demand B.S. :mad:
 
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