West Coast gasoline at $4 per gallon — Ouch!!
The EIA reported this week that on the West Coast (PADD 5) the all grades price of gasoline is now over $4 per gallon. While oil in storage in the US is above the five year average range the volumes of gasoline in storage are at the bottom of their five year range. Distillate is also below its five year range and its price is also back above $4 per gallon on the West Coast. It could be much worse. In Canada the prices are near $150(CA) per liter which is above the $5(US) per gallon range.
The reason is simple to pinpoint…..Exports.
WSJ: “Quite frankly, this is not just a U.S.-centric topic anymore,” said Nancy White, a spokeswoman for motor club AAA. “Production is going overseas, so that impacts the supply here, and that will drive prices up.”
So what happened to that whole “Energy Independence” story?
So shall we export crude too?
One thing can be said for exporting the petroleum products rather than the crude. The value added from refining stay in the US along with the refining jobs. If the crude went offshore so would the jobs and the value added.
Drilling Productivity Report questioned
Ever since looking at the EIA’s first Drilling Productivity Report released last fall we have had our doubts about it. Now David Hughes has put some of his concerns forward in a brief piece this week.
“Natural gas output from US’ Marcellus edges closer to 15 Bcf/d: EIA” declared the headline in Platts that attracted my attention, since the latest data on the Marcellus shale gas play of PA and WV indicated production was less than 12 bcf/d. This headline was based on the latest issue of the EIA’s new monthly Drilling Productivity Report published April 14. Reading further, the article claimed that the Haynesville shale play “peaked at about 10 Bcf/d in 2012”, when in fact it had peaked at closer to 7 bcf/d in 2011. These errors are serious exaggerations of reality and bear further investigation, as the EIA Drilling Productivity Report is widely read and quoted in the media. More…….