propane

[ILLEFTY]

Prepaid my propane today for 2+ years of propane at $1.37 a gallon. Unlimited time to use. I own my tank, so if the price goes below $1.37 I can get it some where else for cheaper price

 

[LAA]

This cheap price is a direct result of increased natural gs drilling and fracking technology, I doubt very much that these facts will translate into real comprehension and regulatory easing by the many lying politicians out there who have been telling the American public for years that increased drilling would not lower fuel prices or that it would take years, all lies, now exposed. If we ever get some people in power who put America and Americans first we will drill our way to prosperity.

 

[jackinok]

beg to differ,but propane comes from oil production,not natural gas.The last i bought was $1.17 here. the problem with your theory is that oil and natural gas is a global commodity.its simply sold to the highest bidder. the VERY WORST THING the US could do in the long run is to rely soley on this countries oil and natural gas rescources at this time. best to use some one elses as long as possible and hold ours as much as possible in reserve. Simply put a dollar made today is nowhere near as good in the long term as two saved today.

 

[ILLEFTY]

In World war 2 the first thing the allies did was to take away Germany's oil. They eventualy ran out of gas. With keeping ours in reserve this will be hard to do.

 

[LAA]

You are incorrect, roughly 50% of US supply of propane comes from domestically produced natural gas, propane is also refined as a by product of crude oil but most of that production is imported. The reason for the cheap price is USA produced natural gas, period. The best thing the US could do is become energy independent, that would automatically lower the world market price and refiners would buy from the cheapest source, who taught you economic theory where more supply equals higher price?????? Look to the trade deficit if you need more proof.

 

[Gene Stevens Oh-Tx]

Looks as if we in NCTX are getting shafted @ $2.36 a gallon...go figure...

 

[jackinok]

lp,liquified petroleum.natural gas is not petroleum,but it does have a few products similar, such as condensate thats refined to lp.and you are correct it can be refined into different things. but as with all things refining anything drives the costs and prices up.what make s you think theres more supply these days? demand for crude increases 20% or more every year for the last several years.demand drives price not in anyway rarity or supply.you have one gallon of ANY product and if no one wants it its simply worthless.everyone wants it its priceless!THE ABSOLUTELY WORST THING THE US OR ANY COUNTRY strategicaly speaking could do is rely totally on its own oil reserves.simply because its nonreplaceable.think of it this way,your on a deserted island,and have just enough water for two days,help will be there in a minimum of 10 days. youll likely die without water in three,so what do you do? ration to try to keep yourself simply alive as long as possible,or do you drink it all now simply because you can ,and its hopeless anyway so you may as well not be thirsty, knowing youll die for sure? the us wouldnt lower the cost of energy,its unbelievable to think so.all it would do is simply use all ours while the other oil producing countries slowed production to keep prices artificialy inflated. Meanwhile they still have theirs when we are out.Who exactly would THAT put in the drivers seat? oil is not unlimited,whoever contrls the last barrel will be the overall winner ,THATS the game not whos the strongest,not whos the best,not whos politics we like or dont like ,but who has the very last of the supplies to make war basicaly.you are very very naive if you think these rescources are unlimited.why in the world do you think we spend so much time and money on countries rich in natural rescourses,when those not are left to wither away?surely you dont believe its any humanitarian thing. Somalia is the armpit of the world,but we bend over backwards there.burma and haiti are some of the poorest in rescources we want,what do we do there?it has nothng to do with people, it has to do simply with what we can get from you. the US's policy is and has been for many many years to hold our rescources in strategic reserve. we produce only enough to make us a player on the world markets. smart money is betting on that reserve. every single barrel of saudi,iraqi,syrian ,or iranian oil we use today is simply another barrel held in reserve in the US. it doesnt take any kind of a economist to understand that.why does the us import oil? very simple its the smartest safest thing we can do bar none!cheap price? on the us market? where are you getting your numbers?we certainly are not the highest in costs,but we are NOWHERE near the cheapest in fuel costs.the highest priced places are the ones with the lowest natural rescources,the cheapest are the one with the most,the us is in the middle we have average oil costs,thats simply the result of us straddling the fence its a balancing act.you pay now or you pay later. would you rather pay more now or have your grandkids reduced to third world status?the US energy policy in a nutshell..use all you can of everyone elses..

 

[Anonymous-0]

These are figures for US domestic crude oil production in 2008---5 million b/d. This year 2012 US domestic crude oil production is going to be 6.3 million b/d. That is a 26% increase in supply of crude. I filled my tank with regular this AM....it cost 3.95/gal. This is not much different from 2008 if anything it is a considerably higher price than 2008 gas. Where is my decrease in gas price due to the 26% increase in supply? Sometimes supply & demand economics works on paper but not a direct transfer to the real world when it involves oil, propane or byproducts of crude.

 

[Anonymous-0]

I bought a second 500 gallon tanks last week and had both fill for .99 a gallon. South of Kazoo Michigan area.

 

[Mike M]

Last month was our suppliers cut off for prebuy.
$ 1.69 on prebuy for your tank and at that time only $ 1.49 was fill up now price. Wish I had some extra money to buy more !
We are also limited on when it has to be used up by I think it was by end of next year ? not sure.

 

[LAA]

sourgum,

How much has the world population increased since 2008? The whole world was in an economic recession in 2008 and demand and production were down. Look at production figures and the price of natural gas today and compare the production levels and price to 2008 or 2010 or 2011, whatever recent year you choose and explain how it was done it if wasn"t increased supply from drilling for it.

 

[Ralph Bauer]

Ditto, Jack, could not have said it any better!!
Ralph in Greer Co.

 

[LAA]

Newsflash --- Oil companies are in business to make a profit, that is how capitalism and the economic model we are supposed to practice in this country works, the reason we drill in foreign countries are many but mainly due to less regulations and favorable tax treatment and percentage of profit splits. The USA has a national petroleum strategic reserve to tide us over in war time and the game changes accordingly to fit the war time situation. Private and public oil companies are not beholding to any government to ""save our oil and use their oil"", that whole premise is absolutely ridiculous. If the business envioronment is right then we will drill for our own resources and overseas, if government is in the way we drill overseas. The desert island, 3 days of water analogy is not worth responding to because it is nonsense.

 

[jackinok]

heres a news flash for you--the largest single entity in the oil buisness anywhere is the US gov. bar none any where. oil companies can make money on one barrel or 20 million a day.in fact they can make money and produce absolutly nothing!I recommend you look at a oil companies income report sometime. youll find theres far more barrels of oil held in reserve than they are producing,why do you think this is? why would you buy oil if you had your own? simply because they want to keep prices up? maybe they havent got around to producing them yet?maybe theres not enough pump jacks to go around. if they were simply after money,why not just shut them all down for thirty days or so? at the end of that time it would sell for far more than it does now. Ive drilled a lot of wells in my day, was a geologist for a while and lived on these rigs for many years,funny thing,MAYBE 10% and generally less of all the oil wells we drilled were ever produced. most were simply tested, to get some idea of the reserve and capped off. the simply fact is if oil is worth $80 regardless of where it came from that day why NOT use forigen oil? its selling for the same price as yours is on the same market to the same customer.why not use it and save yours for later? using american oil wouldnt lower the cost,and very very likely would increase it. pull more from the ground here and the saudis pull less price stays the same, they decrease production enough and you and i will be waiting in line for gas ,or buying horses.Maybe you dont remember the oil shortages of the seventies?

 

[LAA]

I remember the oil shortage of the seventies well -- caused by an oil embargo -- geo political -- same as the late 70/s early eighties -- the Iranian crisis -- both times the US reacted by increasing oil and gas exploration and production -- maybe you don"t remember the oil boom of the early 80" I have spent nearly 40 years on drilling rigs and I currently work in Saudi Arabia and have for the last 5 years, if the US production increases and the chineses or the japaneses or Indians don"t make up the slack then prices go down, SA needs to produce 10 million barrels per day, that has long been their standard, if it is economical the US producers will produce at full capacity, the wells you drilled and plugged were probably put in production at some target price per barrel. The oil business is not some big conspiracy, if we ever go back to drilling like we should be doing prices will go down. As far as oil companies holding reserves, those are estimates of future production capability, usually low balled, they could not stay in business without reserves.