The US Oil Market. World Suppliers US Crude Oil Production is rising.
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Transcript of The US Oil Market. World Suppliers US Crude Oil Production is rising.
Canadian Oil Market
• http://business.financialpost.com/2014/01/08/as-canadian-heavy-crude-prices-strengthen-oil-industry-poised-for-more-profits/?__lsa=70bc-57b7
• Today Western Canada Select is enjoying a sudden bump. The key Canadian oil blend is trading at its highest level in five months as export jams clear, new refinery demand comes online and frigid weather contributes to production snafus in northern Alberta.
Price of Unleaded GasolineYear Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annu
al
1998 1.131 1.082 1.041 1.052 1.092 1.094 1.079 1.052 1.033 1.042 1.028 0.986
1999 0.972 0.955 0.991 1.177 1.178 1.148 1.189 1.255 1.28 1.274 1.264 1.298
2000 1.301 1.369 1.541 1.506 1.498 1.617 1.593 1.51 1.582 1.559 1.555 1.489
2001 1.472 1.484 1.447 1.564 1.729 1.64 1.482 1.427 1.531 1.362 1.263 1.131
2002 1.139 1.13 1.241 1.407 1.421 1.404 1.412 1.423 1.422 1.449 1.448 1.394
2003 1.473 1.641 1.748 1.659 1.542 1.514 1.524 1.628 1.728 1.603 1.535 1.494
2004 1.592 1.672 1.766 1.833 2.009 2.041 1.939 1.898 1.891 2.029 2.01 1.882
2005 1.823 1.918 2.065 2.283 2.216 2.176 2.316 2.506 2.927 2.785 2.343 2.186
2006 2.315 2.31 2.401 2.757 2.947 2.917 2.999 2.985 2.589 2.272 2.241 2.334
2007 2.274 2.285 2.592 2.86 3.13 3.052 2.961 2.782 2.789 2.793 3.069 3.02
2008 3.047 3.033 3.258 3.441 3.764 4.065 4.09 3.786
Finding Equilibrium
• Price Quantity supplied (QS)
• $2.30 300 million gallons per day
• $2.90 340
• $3.20 380
• $3.50 400
• $4.10 500 • Price Quantity demanded by all U.S. consumers of gasoline (QD)
• $4.70 300 million gallons per day
• $4.10 350
• $3.50 400
• $2.90 425
• $2.30 470
Politics and Economics
• Where will prices go from here?
• What are the factors that influence the price?
• How will the supply factors change?
• How will the demand factors change?
• http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/08/u-s-oil-exports-have-been-banned-for-40-years-is-it-time-for-that-to-change/
Natural Gas Consumption
Total natural gas consumption is expected to increase by 2.7 percent in 2008 and by 2.2 percent in 2009
U.S Oil Production
Total U.S. marketed natural gas production is expected to increase by 7.8 percent in 2008 and by 3.8 percent in 2009. Strong year-over-year production growth has been led by the development of onshore fields, particularly in Texas and Wyoming, where production increased by 16 and 12 percent, respectively, during the first 6 months of 2008 relative to year-ago levels.